Azerbaijan Seeks Chinese Investment for Sustainable Development and Green Transformation

Azerbaijan actively seeks Chinese investment for sustainable development, green energy, and transport connectivity under the Belt and Road Initiative, aiming to diversify its economy and transition to a greener future.

Trim Correspondents
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Azerbaijan Seeks Chinese Investment for Sustainable Development and Green Transformation

Azerbaijan Seeks Chinese Investment for Sustainable Development and Green Transformation

Azerbaijan is actively seeking to attract Chinese investors for sustainable development, green transformation, and transport connectivity under the Belt and Road Initiative. The Ambassador of Azerbaijan to China, Bunyad Huseynov, highlighted these priorities during the Azerbaijan Investment and Trade Promotion Conference held at the Embassy of Azerbaijan in Beijing on April 23, 2024.

Trade and e-commerce representatives from China and Azerbaijan expressed a willingness to further promote economic cooperation between the two countries. The conference aimed to explore opportunities for investment and trade between China and Azerbaijan, following the inauguration of President Ilham Aliyev for a new term in February.

Azerbaijan is particularly interested in China's advanced experience and technologies in the field of alternative energy, as well as the active participation of Chinese companies in the restoration and reconstruction work in the liberated territories of Azerbaijan, including green energy projects. "China is Azerbaijan's biggest trading partner in the South Caucasus region," stated Ambassador Huseynov. In 2022, trade between the two countries grew by more than 44% compared to the previous year, reaching $3.1 billion.

The Deputy Minister of Digital Development and Transport of Azerbaijan, Samir Mammadov, and the Regional Head of the Caucasus for the European Bank for Reconstruction and Development (EBRD), Alkis Vriennios Drakinos, discussed boosting the green economy transition from 2024 through 2029. They also reviewed the preliminary draft of the new country strategy of the EBRD for Azerbaijan for the above period, including considerations for the transport sector.

Azerbaijan has launched its first renewable energy auction for a 100MW solar power plant project in Gobustan, with the support of the EBRD. The country has committed to increasing the renewable energy share of its installed electricity generation capacity to at least 30% by 2030 and unlocking its green energy potential through private investment in utility-scale renewables.

Why this matters: Azerbaijan's efforts to attract Chinese investment and expertise in sustainable development and green energy align with the country's broader goals of economic diversification and transition to a greener economy. The successful implementation of these initiatives could serve as a model for other countries in the region seeking to balance economic growth with environmental sustainability.

Economist Natig Jafarly noted that China has become a world leader in the production of green energy and electric cars, and Azerbaijan can benefit from cooperating with China in this field due to its high potential for solar energy. As Azerbaijan actively negotiates with China to establish new projects and expand economic relations, the deepening ties between the two countries are expected to contribute to Azerbaijan's sustainable development and green transformation goals.

Key Takeaways

  • Azerbaijan seeks Chinese investment in sustainable development, green energy, transport.
  • Trade and e-commerce cooperation between China and Azerbaijan to expand further.
  • Azerbaijan aims to increase renewable energy share to 30% by 2030 with private investment.
  • Azerbaijan-China trade grew over 44% in 2022, reaching $3.1 billion.
  • Cooperation with China can help Azerbaijan achieve its sustainable development goals.