BAKU, Azerbaijan, May 13. Executive Director of the Export and Investment Promotion Agency of the Republic of Azerbaijan (AZPROMO), Yusif Abdullayev, told Trend that the "Dialogue with Business in the run-up to COP29" forum, scheduled for May 17 in Baku, will highlight the significant impact of the EU's tax-based Carbon Border Adjustment Mechanism (CBAM) on Azerbaijani exporters of non-oil products to Europe in 2026.
"The Ministry of Economy of Azerbaijan, in collaboration with AZPROMO, is organizing this forum, which will feature multiple discussion panels addressing the entirety of the country's green economy development processes. A key focus will be on the preparedness of Azerbaijani exporters of non-oil products to EU countries for the CBAM tax mechanism,” he emphasized.
CBAM, a financial instrument of the EU, establishes a price for carbon dioxide emissions in the production of carbon-intensive goods imported into the EU, aiming to encourage cleaner production in non-EU exporting countries.
These goods will require a carbon certificate (with a corresponding cash equivalent) upon entry into the EU.
“The EU's implementation of the CBAM mechanism in 2026 will affect Azerbaijan's exports, including non-oil products like nuts, fertilizers, and wine. Azerbaijani companies must accurately assess this significant issue, with relevant discussions scheduled for the forum on May 17,” Abdullayev said.
According to him, the Tax Service of Azerbaijan is actively working on this issue and has started consultations with Azerbaijani companies on this matter.
“Furthermore, the forum on May 17 will feature discussions on the comprehensive climate agenda, covering decarbonization and ESG. The advancement of the green economy, as well as the implementation of new green technologies and financial tools, will entail additional costs for companies. They should anticipate and comprehend the necessary steps in preparation,” he said.
In general, the Ministry of Economy and AZPROMO will hold several such forums in the run-up to COP29.
This November, Azerbaijan will host COP29. This decision was made at the COP28 plenary meeting held in Dubai on December 11 last year. Baku will become the center of the world and will receive about 70-80,000 foreign guests.
The United Nations Framework Convention on Climate Change is an agreement signed at the Earth Summit in Rio de Janeiro in June 1992 to prevent dangerous human interference with the climate system. COP - the Conference of the Parties - is the highest legislative body overseeing the implementation of the Framework Convention on Climate Change. There are 198 countries that are parties to the Convention. Unless the parties agree otherwise, the COP is held annually. The first COP event took place in March 1995 in Germany's Berlin, and its secretariat is located in Bonn.