Azerbaijan's Economy Over 8 Months: Oil Still Dominates, Positive Trends in Transport, Construction, and Tourism

Hosting COP29 necessitates Azerbaijan to take several steps in the energy sector, environmental protection, and climate finance. Therefore, the Azerbaijani government should establish a National Agenda before COP29. This agenda should not only focus on mitigating the negative impacts of climate change and protecting environmental balance but also on accelerating the energy transition. Crucially, it should outline strategies for securing the necessary financing, as this is a key determinant of the success of these initiatives.

For the Azerbaijani government, exporting not only gas to Europe but also "green energy" has become a priority. As a result, Azerbaijan has started to pay special attention to energy production from alternative sources, as well as conserving fuel oil and natural gas used for power plants. Cooperation agreements on "green energy" projects have already been signed with the United Arab Emirates' "Masdar"[1] and Saudi Arabia's "ACWA Power."[2] Under these agreements, the construction of the 240 MW Khizi-Absheron Wind[3] and the 230 MW Garadagh Solar Power Plants[4], with a total investment value exceeding $500 million, is planned.

In conclusion, Azerbaijan is approaching the peak of its natural gas production.

Several key projects have been implemented to create the infrastructure for exporting Azerbaijani gas to the EU market. In early 2007, the Baku-Tbilisi-Erzurum gas pipeline (with an annual capacity of 8.2 billion cubic meters) was launched within the framework of the 690-kilometer South Caucasus Pipeline to facilitate the export of Shah Deniz gas to Georgia and Turkey. In 2011, Azerbaijan and the European Commission signed a Joint Declaration on the Southern Gas Corridor (SGC) project. Notably, in September 2014, the foundation for the 'South' Gas Corridor (SGC) project was laid at the Sangachal terminal, a location of paramount importance in the gas export process.