BAKU, Azerbaijan, Feb.27. Green finance in the Central Asia Regional Economic Cooperation (CAREC) countries is gaining momentum, led by Kazakhstan and Uzbekistan, with emerging activity in Azerbaijan, Trend reports with reference to the latest CAREC Institute report.
The report authors recall that Azerbaijan entered the market with a US $11.8 million green bond issued by UNIBANK.
“As emerging economies, the countries participating in the CAREC program—including Kazakhstan, Uzbekistan, Azerbaijan, and others— have achieved relatively stable GDP growth over the past few decades. However, due to their high dependence on fossil fuels, low energy system efficiency, and aging industrial infrastructure, these countries generally exhibit high carbon emission intensity, with CO₂ emissions per unit of GDP ranking among the highest globally,” the report says.
Many CAREC countries, particularly Kazakhstan, Turkmenistan, Uzbekistan, and Azerbaijan, rely heavily on fossil fuel extraction and exports.
“As a major fossil fuel exporter, Azerbaijan faces significant challenges in decarbonizing its economy. Green finance has been used to support the development of solar and wind energy. In 2022, the country launched a 230 MW solar PPP project in partnership with Masdar, supported by international climate finance,” reads the report.
The report also emphasizes the importance of Public-Private Partnerships in delivering green infrastructure. “Successful examples in Uzbekistan and Azerbaijan demonstrate how transparent tendering processes, de-risking instruments, and international support can attract private investment in clean energy and sustainable transport.”