BAKU, Azerbaijan, September 29. The European Bank for Reconstruction and Development (EBRD) is placing the private sector at the core of its operations, supporting initiatives that drive the global climate transition, EBRD representative Real Hajiyev said, Trend reports.
Speaking at Baku Climate Action Week (BCAW2025), Hajiyev pointed out that last year, a whopping 74 percent of the bank’s total investments were funneled into private sector projects.
Hacıyev noted that the bank helped attract around $5 billion in private sector investments, effectively doubling the impact of each dollar committed and strengthening support for climate-related projects.
“Every dollar invested can leverage an additional two dollars in funding, providing vital momentum for the global climate transition.
So how can this be achieved? There are several approaches, but the most impactful are large-scale infrastructure projects. These include renewable energy initiatives, infrastructure development, and connectivity projects. In every project, we strive to embed climate transition goals and global sustainability principles into the very framework of the initiative,” he said.
The EBRD representative pointed out that a mix of financing, technical assistance, and general support measures is used to nudge project sponsors to weave these elements into their plans.
"For instance, in Azerbaijan last year, during the COP event, we assisted the government in organizing the country’s first renewable energy auctions. As a result, 100 MW of solar panels were tendered in the Garadagh region, with a Chinese company emerging as the winner. This approach helps attract investment while fostering an enabling policy environment," he explained.
Hajiyev articulated that regional financial entities function as
the principal conduit for the EBRD in the orchestration and
allocation of climate finance resources.
"We engage in synergistic partnerships with financial
intermediaries and banking entities to facilitate the allocation of
capital to regional enterprises." Although the outcomes are
frequently realized via micro-scale interventions instead of
extensive infrastructural undertakings, initiatives like enhanced
thermal envelope performance, energy loss mitigation, or stormwater
harvesting are bolstered by more advantageous fiscal
conditions.
In this manner, the EBRD propels the climate transition through
various sectors," he concluded.
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