BAKU, Azerbaijan, October 28. Azerbaijan’s banking sector can play an important role in financing the energy transition, improving companies’ energy efficiency and attracting private capital to green projects, Mikhail Grechiko, EBRD Senior Banker and Regional Head for Financial Institutions, said at the 9th Sustainable Development Goals (SDG) Dialogue held in Baku on Wednesday, Trend’s correspondent reports from the event.
According to him, the energy transition should not be limited to the energy sector but should extend across the entire economy, including businesses, small and medium-sized enterprises (SMEs) and households.
“Companies can contribute to this process by investing in energy-efficient solutions and upgrading equipment, while households can make more environmentally friendly choices. The banking sector can support the energy transition in three main ways. In particular, banks can use their extensive branch networks, digital channels and customer relationships to raise awareness of energy-efficient solutions and help finance their adoption. Banks can also stimulate demand for such solutions by helping businesses assess opportunities to reduce energy consumption and improve competitiveness through equipment upgrades,” he said.
According to Grechiko, the third area is mobilizing private capital.
“The ratio of lending to GDP in Azerbaijan stands at 35%, indicating potential for further development of bank financing. The EBRD provides financing, including in local currency and for long terms, as well as technical assistance to strengthen banks’ expertise in the energy transition. This support is designed to help banks better understand the energy transition, assess relevant projects and advise clients on implementing the necessary solutions,” the EBRD representative said.
The 9th Sustainable Development Goals (SDG) Dialogue is being held in Baku. The event is jointly organized by Azerbaijan’s Ministry of Economy, the National Coordination Council for Sustainable Development and the United Nations (UN).
The theme of the event is “Accelerating the NDC3.0 Implementation in Azerbaijan: Advancing Energy Sector Decarbonization for Sustainable Development.”
The dialogue focuses on implementing Azerbaijan’s national climate commitments, the green transformation of the energy sector, the development of renewable energy sources, and investment opportunities in these areas.
