UK can offer Azerbaijan experience in renewable energy sources - Baroness Nicholson
By Trend
Trend’s exclusive interview with UK Prime Minister’s Trade Envoy to Azerbaijan, Baroness Emma Nicholson
Question: What is the current level of trade ties between Azerbaijan and UK? Which measure are underway to ensure smooth bilateral trade?
Answer: First of all, can I say that I am delighted to be in touch with Trend.az again and that I am very much looking forward to my next trip to Azerbaijan sometime in early 2022, Covid-19 permitting. In spite of Covid-19 and the hit to both economies, I am pleased to note that trade overall has remained stable between our two countries and the economies of both countries are now roaring back to life. As we ‘build back better’ in the UK, we seek to be a central part of Azerbaijan’s effort to ‘build back better’ following the pandemic. We look forward to an enhanced future for both of our nations which will be achieved through stronger trade ties.
One of the main vehicles for enhancing our trade ties is through the Joint Intergovernmental Commission (JIC), which has met on an annual basis since 2016. The aim is to tackle together any challenges in our trading relationship and to smooth out any difficulties which may occur. In its 2021 edition, the JIC focused on non-oil and gas issues for the first time. We agreed to further our cooperation in 14 different areas, including in renewable energy, digital services and transformation, and agriculture. These are areas that matter to the people and businesses of Azerbaijan as to the population of the UK, which enables our companies to offer significant support.
I would also like to mention that President Aliyev has encouraged the UK to take part in the reconstruction efforts of the recovered areas in Karabakh, which we fully support. Some UK firms are already supporting the reconstruction effort, but we would like to see more doing so. There is wide-ranging UK offer in Smart technologies and renewable energy that we hope can help to rebuild people’s lives in the territories.
Q.: How is the UK dealing with the gas crisis going on in Europe? Which measures are taken by UK to strengthen the country’s energy security?
A.: We in the UK can already satisfy most of our gas requirements from the British and Norwegian fields in the North Sea. On this subject, I strongly applaud the positive role Azerbaijan is playing by offering diversification of supply to Europe. Large volumes of natural gas now flow through the Trans-Adriatic pipeline to European countries, including Italy.
But we in the UK also seek to develop our renewable energy sources as quickly as we can. Demand for natural gas in the UK peaked in 2004 and has been on a slow decline ever since. Low carbon sources, including renewables, now provide over 59% of the electricity of the UK and that figure will continue to grow.
I know that the Government of Azerbaijan is also keen to develop its own renewable energy sources, with a small number of pilot projects already underway, including one involving BP. The UK has renewable energy expertise and experience to offer and I would be personally delighted to make introductions between our two countries.
Q.: How can UK and Azerbaijan add value to their existing energy cooperation? What are the prospects in the renewable energy sphere?
A.: Almost thirty years has passed since the Contract of the Century was signed between the Government of Azerbaijan and BP; a project which has shown how both Azerbaijan and the UK can benefit from close cooperation in the energy sphere. There are currently 300-400 UK energy firms in Azerbaijan, which shows the level of interest in Azerbaijan’s energy sector. These companies create thousands of jobs for Azerbaijani citizens, generate billions of manats in tax revenues and help to bring new skills and knowledge to Azerbaijan’s work force.
Looking ahead, the UK wants to be Azerbaijan’s top energy partner as we move into this new era of renewable and clean energies. BP and others are keen to enter Azerbaijan’s renewable energy market if the market conditions are right.
I am pleased to note that the Government of Azerbaijan has been taking active steps to reform the country’s energy market to attract investment. To support the process, the UK government has signed a MoU on Energy Transition Cooperation with Azerbaijan, which will help share best practice on clean energy, energy efficiency, low carbon technologies, as well as energy market transition. For example, the UK’s Office of Gas and Electricity Markets is currently providing support to Azerbaijan’s Energy Regulatory Agency to support the liberalisation of Azerbaijan’s energy market. The UK Government is also helping fund an Offshore Wind Roadmap for Azerbaijan. The UK is a world leader in offshore wind power and the Caspian can be a huge source of energy for Azerbaijan.
Q.: The UK is a host of COP-26 this year. Which opportunities are there for UK-Azerbaijani cooperation in mitigating the impact of the climate change?
A.: Our two countries are already working together to mitigate climate change. All governments know that each country needs to cut emissions dramatically by 2030 and transition to renewable energy. The time to take real action to achieve that is now, as we all learnt from COP-26. The UK has shown clearly that climate action can go hand-in-hand with economic growth. Between 1990 and 2019, the UK achieved record clean growth. In that time, our economy grew by 78% and our emissions decreased by 44% over the same period, which was the fastest decline in the G7. We are eager and ready to help Azerbaijan transition to renewable energy and join the list of countries that prove that climate action, far from hindering, boosts economic growth.
I am pleased to note that Azerbaijan signed nine pledges at COP 26; five of them related to clean energy. The UK looks forward to supporting Azerbaijan in implementing these pledges. We also note the high likelihood of Azerbaijan committing to greater and earlier reductions of the emissions which are damaging our planet in 2022.
Q.: When do you plan to hold the next round of the UK-Azerbaijan Strategic Dialogue and the Joint Inter-government Commission?
A.: I have had the pleasure of visiting Azerbaijan a number of times and I am always touched by Azerbaijan’s famous hospitality and warmth. Next year it is the UK’s turn to host both the Strategic Dialogue and JIC. I will be working with my Ministerial colleagues at the FCDO and DIT and look forward to meeting both sets of delegates and welcome them to the UK. 2022 is also important for both our countries, because we will celebrate 30 years of Azerbaijani-UK relations on 11 March when we will all celebrate our cooperation which has brought prosperity for both countries and deepened our friendship as peoples.
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