BAKU, Azerbaijan, November 30. To expedite the process of decarbonization, Azerbaijan must achieve several key objectives, Rolande Pryce, WB Regional Director for the South Caucasus, told Trend.
“Our main advice is that Azerbaijan needs to get the prices right. Currently, the country is inclined towards fossil fuels because they are relatively inexpensive, making them the go-to option. The government's own strategies outline plans to alter this mix,” she said.
According to Pryce, the WB’s primary recommendation for Azerbaijan is to reduce fossil fuel subsidies, and the second is to potentially incentivize private capital flows towards renewable energy investments, as well as investments in energy efficiency.
“This will alter the rules of the game and the emphasis. It's important to mention that the government has already developed the strategy, so the question now is the pace at which the country will implement it. The WB believes it's urgent for the government to accelerate these reforms,” she explained.
Meanwhile, the WB's Country Climate and Development Report for Azerbaijan was released on November 29. The paper emphasizes decarbonization and resilience strategies that are consistent with the government's economic diversification goals by focusing on the energy system and end-use sectors such as transportation, building, and industry, as well as the water-agriculture nexus.
