BAKU, Azerbaijan, December 19. The UK is a
natural partner for Azerbaijan's economic diversification, and I
see our role as bringing world-leading expertise to support
Azerbaijan's transformation into a more diversified, sustainable
economy, said Lord John Alderdice, UK Trade Envoy to Azerbaijan and
Central Asia, in an exclusive interview with Trend.
"I'm delighted to be in Baku for my first official visit as the
UK Prime Minister's Trade Envoy to Azerbaijan and Central Asia.
This visit comes at an important moment in our bilateral
relationship - in August this year, the UK and Azerbaijan announced
the elevation of our partnership to a Strategic Partnership,
reflecting the depth and ambition of our economic ties," Lord
Alderdice said.
He highlighted the scale of UK investment in Azerbaijan, noting
that the country is already Azerbaijan's largest foreign direct
investor, with over £37 billion invested, and the economic
relationship between the sides continues to strengthen.
"What's particularly exciting is how our partnership is evolving
in areas where British expertise meets Azerbaijan's development
priorities. Clean energy is the standout sector - Azerbaijan's
ambitious clean energy agenda aligns perfectly with the UK's new
Industrial Strategy. We're seeing real momentum in renewable energy
projects, offshore wind supply chains, grid modernisation, and
hydrogen development, with over 50 UK companies already active in
this space and more joining every year," he said.
Two projects illustrate this momentum. Lord Alderdice spoke
about Xlinks, a global leader in renewable energy and green
interconnector projects, that signed a non-binding MOU with the
Green Energy Corridor Power Company to cooperate on a green energy
corridor initiative that aims to take the Caspian's offshore wind
energy to the European markets passing through four countries and
the Black Sea. "This illustrates how British companies are bringing
expertise in interconnectors and grid modernisation to strengthen
regional energy security and accelerate decarbonisation," he
pointed out.
Lord Alderdice also emphasized UK contributions to sustainable
infrastructure: "A landmark agreement between Rapid Solutions and
SOCAR Green will modernise Azerbaijan's water infrastructure, one
of the country's most energy-intensive sectors. The project will
significantly improve energy efficiency whilst supporting
Azerbaijan's climate commitments - showcasing how UK innovation in
sustainable infrastructure is helping Azerbaijan build the
low-carbon systems essential for long-term economic
resilience".
Supporting economic
diversification
"The UK is a natural partner for Azerbaijan's economic
diversification, and I see our role as bringing world-leading
expertise to support Azerbaijan's transformation into a more
diversified, sustainable economy," said Lord Alderdice. "Our
strengths in clean energy, advanced manufacturing, life sciences,
digital technologies, and financial services align perfectly with
Azerbaijan's ambitions".
He highlighted key projects and sectors: "Clean energy is where
we're already seeing this partnership in action. Projects like BP's
Shafag solar plant and the Sangachal electrification demonstrate
how our energy cooperation is evolving beyond hydrocarbons. UK
companies are now actively engaged in Azerbaijan's plans to export
clean energy both westward and eastward, bringing enormous
expertise in interconnectors, offshore wind, and grid modernisation
– areas where Britain is a global leader. For example, the UK
company Arup is currently cooperating with Azerishiq on
Distribution Grid Modernisation and Upgrade".
On finance, healthcare, and education, he added that UK firms
have supported Azerbaijan's banking sector with expertise on carbon
markets, accounting standards, and capital-market development. "In
healthcare and life sciences, our collaboration continues through
ongoing dialogue with Azerbaijan's health authorities. Education
is, perhaps, our most powerful long-term investment in Azerbaijan's
future. Seventy percent of Azerbaijani State Scholars choose to
study in the UK, and institutions like Warwick University are
partnering with Azerbaijan State Oil and Industry University to
offer dual degrees on renewable energy – training the next
generation of professionals who will drive this transformation," he
added.
Maximizing the Middle Corridor's
potential
Lord Alderdice pointed to Azerbaijan's crucial role in the
Middle Corridor, the country being a vital link connecting Europe
and Asia. "The UK recognises the Corridor's strategic importance
not just for regional trade, but for energy security and
sustainable transport across a vast geography that matters
enormously to global commerce," he said.
"British expertise in logistics, infrastructure finance, and
regulatory reform aligns closely with Azerbaijan's objectives for
the Corridor. UK businesses bring world-class capabilities in
airport and port master planning, rail modernisation, and
integrated multimodal transport systems – the kind of sophisticated
infrastructure that can genuinely unlock the Corridor's potential,"
the trade envoy said.
Moreover, the UK companies are leaders in smart systems that
speed cargo movement and reduce friction at borders, which is
essential to making the Corridor competitive. "Critically, we
believe the Corridor's long-term success must be built on
sustainable, low-carbon transport. As the world moves toward net
zero, the Middle Corridor has an opportunity to position itself as
a green trade route, and the UK's experience in sustainable
infrastructure can help Azerbaijan lead that transition," he
added.
Leveraging UKEF for strategic
projects
Lord Alderdice also spoke about UKEF financing tools: "UKEF is a
powerful tool for deepening UK-Azerbaijan cooperation, and we have
a substantial £5 billion credit facility available for Azerbaijan.
This isn't just about financing - it's about derisking large-scale
projects, making them attractive to contractors and investors, and
accelerating the strategic investments that support Azerbaijan's
economic diversification".
He provided examples, such as the first UKEF-backed transaction
in Azerbaijan, which was agreed for a Boeing 777 full-flight
simulator for the National Aviation Academy. He explained that this
is a deal that not only supports Azerbaijan's aviation sector but
opens the door to deeper aerospace cooperation between our
countries.
"Clean energy projects are particularly well suited to UKEF
support. Whether it's offshore wind, solar, hydrogen development,
or grid modernisation - the kinds of large-scale infrastructure
that require substantial capital and long-term certainty - UKEF's
22-year extended repayment period for clean growth projects is a
critical differentiator. Transport infrastructure linked to the
Middle Corridor is another priority area, along with digital
systems and city modernisation projects. Water infrastructure and
sustainable construction also offer significant financing
opportunities where British companies have proven expertise," he
added.
British architecture and urban
development
"British architects are making significant contributions to
Azerbaijan's urban transformation. Companies like Zaha Hadid
Architects, Chapman Taylor, and Scott Brownrigg are supporting some
of Azerbaijan's most important urban developments, bringing
cutting-edge expertise in green buildings, sustainable
construction, and future-ready city planning," Lord Alderdice
said.
The trade envoy noted the wider impact: "At Baku Build this
year, UK architecture and construction companies showcased
solutions in digital construction and Building Information
Modelling - BIM - which the UK is actively supporting Azerbaijan to
adopt. BIM improves efficiency, transparency, and sustainability
across the construction lifecycle, while Modern Methods of
Construction reduce waste, speed up delivery, and improve energy
performance".
Highlighting a flagship initiative, he added: "During my first
official visit as Trade Envoy, I was delighted to announce the
winners of the 'Women in Architecture' competition at the Heydar
Aliyev Centre – itself an iconic Zaha Hadid building. This
initiative challenged female students to design creative responses
to water scarcity in urban developments. The theme, 'Hope in Every
Drop: Art and Architecture for Change,' addresses one of our era's
greatest challenges whilst empowering the next generation of female
architects."
UK engagement in Central Asia's energy
transition
"Central Asia is emerging as a major clean-energy hub, and the
region's vast solar and wind potential positions it to play a
significant role in the global energy transition. For the UK, this
creates enormous opportunities to deepen engagement in a region
where British expertise in renewable deployment, clean hydrogen,
and low-carbon infrastructure is already making an impact," Lord
Alderdice said.
He cited specific projects such as Genesis, which is developing
green hydrogen projects in Kazakhstan, Mott MacDonald that designed
Uzbekistan's power sector masterplan to 2030, and Worley, which is
delivering a 1.5-gigawatt wind project in Uzbekistan. "The
UK-Kazakhstan low-carbon hydrogen partnership demonstrates the kind
of strategic collaboration we can build, combining Central Asia's
renewable resources with British technological leadership," he
said.
"The British Geological Survey is helping map critical minerals
needed for clean energy technologies, whilst UK firms support
responsible extraction, processing, and governance frameworks for
these vital resources. This matters because Central Asia holds
significant reserves of minerals that will power the global shift
to net zero, and how they're developed will determine both economic
and environmental outcomes," he added.
Finally, he noted climate cooperation: "We're also helping
Central Asian countries cut methane emissions under the Global
Methane Pledge - addressing one of the most impactful climate
actions available whilst supporting the region's existing energy
sectors to operate more sustainably. The combination of Central
Asia's natural advantages and the UK's clean energy expertise
creates a partnership that can accelerate the region's
transformation into a clean-energy powerhouse whilst delivering
commercial opportunities for British businesses."
