Transforming Middle Corridor into green gateway for sustainable trade [COMMENTARY]
The Middle Corridor, a vital trade and logistics route connecting Central Asia and Europe, holds significant potential to become a key player in global climate efforts. With the backing of global climate summits like COP29, the development of this corridor offers unique opportunities to foster climate-friendly infrastructure and energy investments, which can significantly reduce carbon footprints and ensure sustainable development. During COP29, key figures shared their insights on how this transformation could take place.
When asked about the Middle Corridor's potential for becoming a sustainable energy gateway, Minister Rashad Nabiyev confirmed the importance of aligning infrastructure developments across countries to meet climate goals.
"While the transition will depend on coordinated efforts between countries like Kazakhstan, Azerbaijan, and Georgia, we are making significant strides in electrifying railways and expanding capacity. If we synchronize our activities across the entire corridor, we can ensure greater efficiency and sustainability."
The need for low-carbon transport infrastructure
The Middle Corridor spans a large network of roads and railways connecting China to Europe, with transportation emissions being a key concern. Rail transport, with its significantly lower carbon emissions compared to road transport, offers a sustainable alternative for this route. Rashad Nabiyev, Minister of Digital Development and Transport of Azerbaijan, emphasized the importance of synchronizing infrastructure investments to improve efficiency along the corridor, making it more energy-efficient and less reliant on carbon-heavy road transport.
"With the recent electrification and expansion of rail capacity, especially in Azerbaijan and Georgia, we have already started transitioning to more sustainable transport options. By aligning infrastructure improvements along the entire corridor, we can create a much more energy-efficient route," Nabiyev stated.
Carbon markets and financing opportunities
The discussions around carbon markets at COP29 present another opportunity for the Middle Corridor. Under Article 6 of the Paris Agreement, international carbon markets could provide financial resources for countries along the corridor in exchange for carbon reductions. These funds could support low-carbon projects, such as electrified railways, renewable energy-powered transport, and energy-efficient logistics networks.
James Leather, Director of the Emerging Areas Transport Sector Office at the Asian Development Bank (ADB), highlighted the importance of long-term investments in transforming the Middle Corridor into a green route: "The growth in demand for freight movement between Asia and Europe will continue to rise. We need to start investing now in infrastructure that will serve future demands. The Middle Corridor needs to be a multimodal network that combines rail, road, and ports, all powered by green technologies."
James Leather of ADB also stressed the importance of long-term investments and multimodal transport solutions for the corridor's future. "We need to consider the future demands of freight and passenger transport, ensuring that investments today are large enough to meet the needs of 2050. The Middle Corridor will be a vital connector between ports, railways, and roads, and it must be powered by green technologies to meet future demands," he explained.
At the event "Towards a Sustainable Future with Transport Corridors: Railways in Climate Policy," Rovshan Rustamov, Chairman of Azerbaijan Railways (ADY), shared some of the achievements already made in this area. Over the past two years, ADY has significantly reduced carbon emissions by electrifying 63% of the railway network and integrating renewable energy sources, such as solar panels, into its operations. Since 2023, ADY has reduced energy consumption by 5%, natural gas use by 16%, and water consumption by 23%.
“We expect that the financing of sustainability initiatives will play a critical role in furthering these efforts,” Rustamov added. "The implementation of green financing in our sustainability projects is a central aspect of ADY's 2030 strategy."
Developing renewable energy infrastructure
COP29's focus on clean energy is a catalyst for the Middle Corridor's transformation. Central Asia and the Caucasus regions, which the corridor passes through, have vast renewable energy potential, particularly in wind, solar, and hydropower. These renewable resources can power transport networks along the corridor, lowering energy costs and carbon footprints. The development of renewable energy infrastructure, particularly solar and wind energy, can play a critical role in powering railways and other logistics operations along the route.
In conclusion, COP29's focus on resilience in the face of climate change directly aligns with the Middle Corridor's goals. By investing in green technologies and climate-resilient infrastructure, the countries along the corridor can strengthen their economies and ensure that trade continues to flow smoothly even in the face of climate-related disruptions.
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