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Akbar Novruz

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Green financing is accelerating across member states of the Central Asia Regional Economic Cooperation (CAREC) program, with growing activity also observed in Azerbaijan, AzerNEWS reports, citing a new report by the CAREC Institute.

According to the report, Azerbaijan entered the green finance market through the issuance of a green bond worth $11.8 million by UNIBANK, marking a notable step in mobilizing sustainable capital.

The CAREC Institute identifies Kazakhstan and Uzbekistan as leading countries in the field of green financing within the region.

“The CAREC program participants with developing economies, including Kazakhstan, Uzbekistan, Azerbaijan and others, have demonstrated relatively stable GDP growth over the past decades. However, high dependence on fossil fuels, low efficiency of energy systems and outdated industrial infrastructure lead to a high carbon intensity of the economy: CO₂ emissions per unit of GDP are among the highest in the world,” the report states.

It notes that many CAREC countries, particularly Kazakhstan, Turkmenistan, Uzbekistan and Azerbaijan, remain heavily reliant on fossil fuel production and exports.

“As a major exporter of fossil fuels, Azerbaijan faces serious challenges in decarbonizing its economy. Green financing is aimed at supporting the development of solar and wind energy. In 2022, the country launched a 230 MW solar power project in a public-private partnership with Masdar, supported by international climate finance,” the report emphasizes.

The document also underlines the role of public-private partnerships in advancing green infrastructure.

“Successful examples in Uzbekistan and Azerbaijan show that transparent tendering processes, risk mitigation tools and international support can leverage private investment in clean energy and sustainable transport,” the report concludes.