BAKU, Azerbaijan, October 28. Azerbaijan’s
banking sector can play an important role in financing the energy
transition, improving companies’ energy efficiency and attracting
private capital to green projects, Mikhail Grechiko, EBRD Senior
Banker and Regional Head for Financial Institutions, said at the
9th Sustainable Development Goals (SDG) Dialogue held in Baku on
Wednesday, Trend’s
correspondent reports from the event.


According to him, the energy transition should not be limited to
the energy sector but should extend across the entire economy,
including businesses, small and medium-sized enterprises (SMEs) and
households.


“Companies can contribute to this process by investing in
energy-efficient solutions and upgrading equipment, while
households can make more environmentally friendly choices. The
banking sector can support the energy transition in three main
ways. In particular, banks can use their extensive branch networks,
digital channels and customer relationships to raise awareness of
energy-efficient solutions and help finance their adoption. Banks
can also stimulate demand for such solutions by helping businesses
assess opportunities to reduce energy consumption and improve
competitiveness through equipment upgrades,” he said.


According to Grechikho, the third area is mobilizing private
capital.


“The ratio of lending to GDP in Azerbaijan stands at 35%,
indicating potential for further development of bank financing. The
EBRD provides financing, including in local currency and for long
terms, as well as technical assistance to strengthen banks’
expertise in the energy transition. This support is designed to
help banks better understand the energy transition, assess relevant
projects and advise clients on implementing the necessary
solutions,” the EBRD representative said.







The 9th Sustainable Development Goals (SDG) Dialogue is being
held in Baku. The event is jointly organized by Azerbaijan’s
Ministry of Economy, the National Coordination Council for
Sustainable Development and the United Nations (UN).


The theme of the event is “Accelerating the NDC3.0
Implementation in Azerbaijan: Advancing Energy Sector
Decarbonization for Sustainable Development.”


The dialogue focuses on implementing Azerbaijan’s national
climate commitments, the green transformation of the energy sector,
the development of renewable energy sources, and investment
opportunities in these areas.