Green finance in the spotlight to foster sustainable growth

On 4 April 2018, PESI Chairman Farid Malikov attended a workshop held in Baku to weigh in the prospects of scaling up green investments and finance in Azerbaijan.

The workshop aimed to take stock of relevant initiatives, policy changes and financial vehicles to scale up green finance, identify key challenges and discuss ways forward to better align financial mechanisms with policy reforms in support of energy-efficient and low-carbon growth in Azerbaijan. The participants shared past experience, analysing good examples and lessons learned and proposing options for further action and analysis.

Speaking at the meeting, Farid said that the policy measures are already in place to improve the framework for green transformation, but added that public support and private finance are further needed to drive the process. He drew attention to fostering educational and awareness-raising initiatives with a view to promote change in behaviour towards energy and resource efficiency, and stressed the role of stimulating measures and financial mechanisms in improving financing flows into green infrastructure.

green finance workshop

Farid noted that recent technological advances have decreased the cost of energy production from renewable sources. He said that Azerbaijan has favorable geographic characteristics and condition to tap into alternative energy potential in order to reduce dependence on fossil fuels.

Farid touched upon the insufficiency of grants and loans allocated by the financial institutions for energy efficiency actions and projects. He emphasized the extension of green credit lines with reduced interest rates and increased grace periods to foster green lending. Farid also underscored the need for green bond and energy service company markets to develop low-carbon and climate-resilient infrastructure.

The event brought together a wide spectrum of participants from the government, local financial institutions, international organisations, academia, green and climate related CSOs and initiatives.

The workshop was held by the Organization for Economic Cooperation and Development (OECD) in a joint effort with the State Agency for Alternative and Renewable Energy Sources of the Republic of Azerbaijan under the "Greening Economies in the European Union Eastern Neighbourhood" Project.

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