Azerbaijan has made significant strides in improving its economy over the past decade, as it embarked on a market-based economy and recovered from a significant downturn following the breakup of the Soviet Union. As a result, the government is now looking to implement a policy for country’s transition to a low-carbon, resource efficient and socially inclusive economy. This study presents an assessment of Azerbaijan’s economy, looking at ways that will foster such transition.
The report outlines how Azerbaijan has a window of opportunity to use its fossil fuel revenues as a funding source to transition to a sustainable future. According to the report’s findings, the country’s oil revenues could be used to invest in more employment-driven and resource-efficient industries. The report emphasizes that the transition must be backed by the right enabling conditions to encourage smarter decision-making on the part of consumers and the private sector alike. In addition to using domestic funding to make the transition to a green economy, the report also suggests that Azerbaijan could use its experience in accessing international funding to leverage support for key green economy projects.