BAKU, Azerbaijan, January 29. The American Chamber of Commerce in Azerbaijan (AmCham) has shared recommendations to accelerate Azerbaijan's transition to green transport, Trend reports via AmCham.
The chamber proposed providing additional import duty exemptions for hybrid vehicles, especially plug-in hybrids, developing a roadmap for developing charging infrastructure, and amending legislation to allow private entrepreneurs to sell electricity to third parties and back to the grid, which would encourage increased private investment in charging stations.
AmCham also recommended promoting the implementation of the Central Bank's recommendations to reduce insurance rates for environmentally friendly vehicles and introduce control mechanisms, as well as mandating the installation of charging stations in new shopping malls, parking lots, and residential complexes.
It also proposed to grant owners of environmentally friendly vehicles incentives such as specially colored license plates, dedicated parking spaces, and discounts on toll roads, while environmentally friendly vehicles receive priority in government procurement.
Additionally, AmCham advocated for the establishment and enhancement of net zero zones, including public transportation in Shusha city, eco-friendly internal transport in national parks, and strategic sites such as the Alat Free Economic Zone, and reaching a target of 30% electrification of the bus fleet by 2030.
More broadly, AmCham proposed conducting feasibility studies to assess the supply and demand of alternative fuels in rail, maritime, and air transport, including biofuels, sustainable aviation fuels, methanol, and other hybrid fuels.
AmCham noted that Azerbaijan has already implemented a number of measures in this direction.
According to the chamber, the government adopted an amendment providing for the exemption of hybrid and electric vehicles from VAT on customs clearance and sale, while electric vehicles are completely exempt from all taxes and duties on import.
The chamber emphasized that these steps have contributed to the growth of clean vehicle imports and made them more affordable for consumers.
"Electric buses have been introduced and integrated into the public transportation system in Baku. New favorable lending terms for eco-friendly vehicles (the down payment reduced from 40% to 20% and the interest rate from 15% on average to 10% on average) significantly contributed to the transition towards green transportation in Azerbaijan.
It’s also important to highlight the crucial role of banks and financing mechanisms in enabling households to adopt hybrid and electric vehicles, both in 2024 and with continued impact expected in 2025, and possibly until 2030 inclusive," AmCham added.
The American Chamber of Commerce in Azerbaijan, established in 1996, has been operational for 30 years as of early 2026. Founded to support foreign and local businesses, it emerged shortly after the "Contract of the Century," which spurred economic development in the country. Representing over 270 member companies by late 2025, AmCham Azerbaijan is one of the largest business associations in the nation, facilitating communication between the business sector and the government through 11 industry sector committees aimed at enhancing the business environment.
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