BAKU, Azerbaijan, Feb.27. Green finance in the
Central Asia Regional Economic Cooperation (CAREC) countries is
gaining momentum, led by Kazakhstan and Uzbekistan, with emerging
activity in Azerbaijan, Trend reports with reference to the latest
CAREC Institute report.
The report authors recall that Azerbaijan entered the market
with a US $11.8 million green bond issued by UNIBANK.
“As emerging economies, the countries participating in the CAREC
program—including Kazakhstan, Uzbekistan, Azerbaijan, and others—
have achieved relatively stable GDP growth over the past few
decades. However, due to their high dependence on fossil fuels, low
energy system efficiency, and aging industrial infrastructure,
these countries generally exhibit high carbon emission intensity,
with CO₂ emissions per unit of GDP ranking among the highest
globally,” the report says.
Many CAREC countries, particularly Kazakhstan, Turkmenistan,
Uzbekistan, and Azerbaijan, rely heavily on fossil fuel extraction
and exports.
“As a major fossil fuel exporter, Azerbaijan faces significant
challenges in decarbonizing its economy. Green finance has been
used to support the development of solar and wind energy. In 2022,
the country launched a 230 MW solar PPP project in partnership with
Masdar, supported by international climate finance,” reads the
report.
The report also emphasizes the importance of Public-Private
Partnerships in delivering green infrastructure. “Successful
examples in Uzbekistan and Azerbaijan demonstrate how transparent
tendering processes, de-risking instruments, and international
support can attract private investment in clean energy and
sustainable transport.”
