Climate finance and embracing renewables: Azerbaijan’s role at COP29

As COP29 continues in my hometown of Baku, I feel an immense sense of pride at Azerbaijan hosting one of the most significant climate conferences of our time. 

As an Azerbaijani student at the Blavatnik School, part of a vibrant global community focused on addressing the world’s greatest challenges, this moment feels deeply personal. It reflects how Azerbaijan’s energy history can stand alongside its efforts to engage in meaningful global climate discussions. While some of the most significant outcomes of COP29 are yet to be determined, we have seen significant progress on a number of fronts. 

One of the key issues this year is climate finance, a lifeline for developing countries striving to mitigate and adapt to climate change. During the opening of COP29, Azerbaijan’s leadership emphasised the importance of developed countries fulfilling their obligations to provide financial assistance to developing nations, underscoring the critical role of climate finance in achieving global sustainability goals. Since 2009, developed nations have committed to mobilizing $100 billion annually in climate finance to support developing countries.

However, meeting this target has been challenging, making renewed discussions at COP29 crucial for fulfilling this promise and addressing global climate inequities. Azerbaijan’s call for equitable financial commitments aligns with the ongoing discussions at COP29 to operationalise climate finance mechanisms. By reflecting on its energy transition, how can Azerbaijan and the global community collaborate to build a sustainable future? 

The symbolism of being a COP29 host 

Hosting COP29 is particularly symbolic for Azerbaijan, as Baku, the birthplace of the global oil industry, now takes center stage in global climate discussions. As someone born during the transformative era of the Contract of the Century in 1994, I’ve witnessed firsthand how oil and gas have shaped our nation. This landmark agreement brought Azerbaijan together with international energy companies to develop its vast oil reserves in the Caspian Sea, marking a pivotal moment in securing foreign investment and establishing the country as a major energy hub. 

In 2024, Azerbaijan declared the “Green World Solidarity Year”, underscoring its commitment to sustainability and climate action. This initiative aligns with the country’s broader strategy to diversify its energy mix and reduce reliance on fossil fuels. Azerbaijan has made significant progress in renewable energy development, notably with the Garadagh Solar Power Plant, which, with a capacity of 230 MW, has become the largest solar facility in the Caspian region. This plant is expected to decrease the country’s dependence on natural gas, reducing emissions by 200,000 tonnes a year. In addition to solar energy, Azerbaijan is investing in wind energy projects. The Khizi-Absheron Wind Farm, located in the Khizi and Absheron districts, is set to have a capacity of 240 MW. This project aims to mitigate the impact of 400,000 tonnes of carbon emissions annually. 

In its journey toward sustainability, Azerbaijan boasts significant renewable energy potential. The country’s economic potential for renewables is estimated at 27 GW, including 3,000 MW of wind energy, 23,000 MW of solar energy, 380 MW of bioenergy, and 520 MW of hydropower from mountain rivers. These figures highlight Azerbaijan’s ability to harness diverse renewable resources as it transitions toward a greener energy mix. 

Azerbaijan is also focusing on Karabakh and East Zangazur economic regions, aiming to transform them into a “Green Energy Zone”, with the goal of achieving net-zero emissions in these areas by 2050. These territories, internationally recognized as part of Azerbaijan, have significant renewable energy potential. For instance, solar radiation levels in Zangilan and Jabrayil rank among the highest in the country, making them ideal for solar energy projects, while Lachin and Kalbajar offer favorable wind conditions for wind energy development. 

Enabling Azerbaijan’s energy transition through climate finance 

Azerbaijan’s energy transition demonstrates the critical role of climate finance in driving clean energy projects. With international investments and financial support, the country has expanded its renewable energy infrastructure, highlighting how climate finance enables countries like Azerbaijan to reduce their reliance on fossil fuels and align with global sustainability goals. According to the UNFCCC, climate finance encompasses local, national, or transnational funding—public or private—that supports actions to mitigate and adapt to climate change. For developing nations, these resources are a lifeline, enabling them to transition to renewable energy, build resilience, and address climate-related challenges. 

During COP29, multilateral development banks, such as the World Bank and the European Investment Bank have pledged to increase climate-related lending to $120 billion annually for low- and middle-income countries. The Asian Development Bank announced an additional $7.2 billion in investments, including a $3.5 billion adaptation program targeting glacial melt in Central Asia and the Southern Caucasus. Negotiators reached a breakthrough agreement on international carbon market standards under Article 6.4 of the Paris Agreement. This marks a critical step in creating a UN-backed framework for carbon credit trading, a mechanism expected to direct significant financial resources to developing nations. This decision could potentially unlock up to $250 billion annually for climate action, ensuring a more equitable distribution of resources for mitigation and adaptation projects. 

Empowering the next generation through climate literacy 

As part of its COP29 Presidency, Azerbaijan has also launched an initiative to measure the climate literacy of students worldwide. Pioneered by Ministry of Science and Education where I was working before joining the Blavatnik School, this project aligns with the broader “Greening Education Partnership,” highlighted at COP29, which stresses the need for education systems worldwide to integrate climate and environmental issues into their core curricula. By fostering informed and empowered future leaders, such initiatives ensure that the next generation can contribute to sustainable solutions, including shaping equitable financial mechanisms and channeling resources effectively to combat climate change. 

A pivotal role in global climate action? 

These developments at COP29 highlight the critical role of collective action in addressing global climate challenges. From advancing renewable energy projects to championing innovative financial mechanisms, the conference has underscored the importance of shared responsibility among nations. Azerbaijan’s contributions, alongside the efforts of international institutions and global partnerships, exemplify how collaboration can drive tangible progress. While some of the outcomes like the pivotal climate finance goal are yet to be finalised, COP29 serves as a reminder that meaningful change is possible when nations unite to build a sustainable, equitable, and resilient world. 

Shabnam is a Republic of Azerbaijan State Scholar.