BAKU, Azerbaijan, June 2. “Green” electricity
has the potential to become a certifiable, tradable, and
financeable asset, provided that metering systems and a transparent
infrastructure are developed, Aslan Ibrahimov, a Partner in
Deloitte’s Strategy, Risk, and Transactions (SR&T), said during
a panel discussion held as part of Baku Energy Week, Trend reports.
According to him, given the current state of the energy
transition and in the context of COP29 in Baku, the key issue is
the further development of mechanisms that go beyond basic “green”
electricity generation.
Ibrahimov emphasized that to effectively harness Azerbaijan’s
potential in this area, it is important to transform the
environmental characteristics of electricity into tools for
certification, trade, and financing, including the mechanisms of
Article 6 of the Paris Agreement.
According to him, Article 6 is viewed by many market
participants primarily as a carbon trading tool; however, in
practice, it constitutes a more complex system requiring clear
rules for accounting for and distributing environmental benefits.
Without a developed system of accountability and the establishment
of ownership rights for environmental outcomes, market functioning
is hindered, whereas with such infrastructure in place, climate
outcomes can become fully-fledged financial assets.
He also emphasized that countries should not rush to export all
“green” energy attributes, as they have varying levels of value.
“First, it is necessary to determine how ‘green’ electricity serves
national goals – energy security and industrial competitiveness –
then create a certification system, and only after that monetize
surpluses on the international market,” Ibrahimov noted.
