popular articles

Azerbaijan: an ambitious climate fund for sustainable energy

Azerbaijan has positioned itself as a key player in the fight against climate change by launching the Climate Finance Action Fund at COP29. This initiative aims to mobilize resources for decarbonization and the global energy transition.

Please share:

Azerbaijan is positioning itself as a key player in the global fight against climate change, announcing the creation of a climate fund at the 29th Conference of the Parties (COP29) to be held in Baku.
The fund, called the Climate Finance Action Fund (CFAF), will be supported by voluntary contributions from fossil fuel-producing countries and companies, marking a bold initiative to mobilize financial resources for decarbonization.
As an oil and gas producing country, Azerbaijan seeks to build a global consensus around climate action, focusing on a variety of energy-related programs, including green energy corridors, hydrogen and renewable energy storage.
The CFAF aims to capitalize an initial amount of one billion dollars, with the commitment of ten contributing countries as shareholders.
Fund members commit to annual contributions, either in the form of fixed sums or based on production volume.
This initiative comes at a time when world leaders are under pressure to establish a new climate finance framework, known as the New Collective Quantified Goal on Climate Finance, which is seen as a key element of the global climate agenda.

Initiatives for a sustainable energy transition

Azerbaijan has also launched initiatives to create green energy zones and corridors, with the aim of tripling renewable energy capacity and doubling energy efficiency by 2030.
Green energy zones are designed to serve as centralized hubs where sustainable energy generation is maximized, while green energy corridors will enable cost-effective transmission over long distances and across borders.
These projects aim to strengthen energy infrastructure and facilitate the transition to more sustainable energy sources.
In parallel, the country is calling for the adoption of the COP29 Global Energy Storage and Grids Pledge, which aims to increase installed energy storage capacity to 1,500 GW by 2030, six times the 2022 level.
The pledge also commits signatories to improving the capacity of electricity grids, with a global target of deploying more than 80 million kilometers of grids by 2040.
These initiatives testify to Azerbaijan’s ambition to play a central role in the global energy transition.

Azerbaijan’s role in climate financing

The COP29 presidency underlines Azerbaijan’s importance in bridging the gap between developed and developing countries on the sensitive issue of climate financing.
As a member of the OPEC+ alliance, the country produced an average of 480,000 barrels per day of crude oil in August, while increasing its gas exports to Europe thanks to the Southern Gas Corridor project.
By 2024, Azerbaijan plans to supply 13 billion cubic meters of gas to the region, up from 11.8 billion cubic meters the previous year.
The country also announced the launch of the COP29 Hydrogen Declaration, which aims to support the harmonization and development of hydrogen markets.
According to the Presidency, “there is an urgent need to harmonize international frameworks, regulations and standards to create viable business models for the hydrogen value chain”.
This declaration could play a crucial role in setting international standards for the development of hydrogen as a clean energy source.

Challenges and prospects for COP29

Despite these promising initiatives, the Presidency’s action agenda makes no mention of carbon markets, raising questions about their compatibility with UN priorities.
Negotiations around Article 6 of the Paris Agreement, which aims to establish rules for global trade in greenhouse gas emission reductions, are often hampered by integrity concerns and issues relating to project methodologies.
Industry players hope that significant progress will be made on Articles 6.2 and 6.4 at COP29, opening up new opportunities for emissions trading.
As a fossil fuel producer, Azerbaijan is at a strategic crossroads.
By engaging in climate finance initiatives while continuing to exploit its energy resources, it illustrates the challenges and opportunities facing many producing countries.
Azerbaijan’s ability to navigate this duality will be crucial to its future role in the global energy landscape, and to the achievement of global climate goals.

Register free of charge for uninterrupted access.

Publicite

Recently published in

The United States has cancelled oil operation authorisations in Venezuela for foreign companies, disrupting exports and reinforcing the country's economic isolation following Nicolás Maduro's contested re-election.
The Algerian energy group Sonelgaz is offering its technical expertise to Burkina Faso to strengthen its electrical infrastructure, illustrating Algeria's strategic intention to consolidate its presence in sub-Saharan Africa’s energy markets.
The Algerian energy group Sonelgaz is offering its technical expertise to Burkina Faso to strengthen its electrical infrastructure, illustrating Algeria's strategic intention to consolidate its presence in sub-Saharan Africa’s energy markets.
Washington again delays the enforcement of sanctions against NIS, the Serbian energy company controlled by Gazprom, extending the status quo until the end of April according to Serbian President Aleksandar Vucic.
Washington again delays the enforcement of sanctions against NIS, the Serbian energy company controlled by Gazprom, extending the status quo until the end of April according to Serbian President Aleksandar Vucic.
The United States has strengthened its support for Guyana amid Venezuela’s claims over the Essequibo, warning Caracas of a military response in case of aggression targeting the territory or American oil interests.
The United States has strengthened its support for Guyana amid Venezuela’s claims over the Essequibo, warning Caracas of a military response in case of aggression targeting the territory or American oil interests.
No attacks on energy installations have been reported since a partial agreement announced by the United States, marking a pause in hostilities targeting critical infrastructure.
During a visit to Guyana, U.S. Secretary of State Marco Rubio announced that any Venezuelan attack on the territory or oil infrastructure of Guyana would trigger a military response, heightening regional tensions.
During a visit to Guyana, U.S. Secretary of State Marco Rubio announced that any Venezuelan attack on the territory or oil infrastructure of Guyana would trigger a military response, heightening regional tensions.
US Secretary of State Marco Rubio launches meetings with Caribbean leaders to discuss energy security, trade pressures and regional instability, including in Haiti and Guyana.
US Secretary of State Marco Rubio launches meetings with Caribbean leaders to discuss energy security, trade pressures and regional instability, including in Haiti and Guyana.
Hungary’s Foreign Minister travelled to Moscow for talks with Russian authorities on energy security, reinforcing a strategic energy partnership already bolstered by record gas and oil deliveries in 2024.
Hungary’s Foreign Minister travelled to Moscow for talks with Russian authorities on energy security, reinforcing a strategic energy partnership already bolstered by record gas and oil deliveries in 2024.
Donald Trump imposes 25% tariffs against importers of Venezuelan oil, particularly targeting China, which has already condemned an infringement on its economic sovereignty, signaling increased tensions in global energy markets.
The planned visit of senior US officials to Greenland sparks political backlash in Nuuk, as no new government has been formed since the 11 March elections.
The planned visit of senior US officials to Greenland sparks political backlash in Nuuk, as no new government has been formed since the 11 March elections.
Starting 2 April, the United States will apply a 25% customs duty on all goods from countries trading with Venezuela’s oil or gas sector, Donald Trump announced.
Starting 2 April, the United States will apply a 25% customs duty on all goods from countries trading with Venezuela’s oil or gas sector, Donald Trump announced.
Washington imposes sanctions on Luqing Petrochemical, the first independent Chinese refinery targeted for its alleged ties to Iranian oil, as part of its intensified economic pressure campaign against Tehran.
Washington imposes sanctions on Luqing Petrochemical, the first independent Chinese refinery targeted for its alleged ties to Iranian oil, as part of its intensified economic pressure campaign against Tehran.
A Panama-flagged vessel suspected of belonging to the Russian shadow fleet was detained by German customs after suffering an engine failure in the Baltic Sea in January.
Amidst war and geopolitical uncertainty, Ukraine must choose between European influence and the strategic promises of the United States, a choice that could redefine its economic and security future, particularly in terms of natural resources.
Amidst war and geopolitical uncertainty, Ukraine must choose between European influence and the strategic promises of the United States, a choice that could redefine its economic and security future, particularly in terms of natural resources.
As Russian gas deliveries via Nord Stream have ceased, Europe is exploring possible solutions to repurpose or replace this major infrastructure within a complex energy transition and diversification of supply sources.
As Russian gas deliveries via Nord Stream have ceased, Europe is exploring possible solutions to repurpose or replace this major infrastructure within a complex energy transition and diversification of supply sources.
Donald Trump and Vladimir Putin are set to discuss the sharing of rare earth resources in Ukraine on Tuesday, including energy production plants and territories rich in raw materials. These resources are at the heart of the ceasefire negotiations.
Donald Trump and Vladimir Putin are set to discuss the sharing of rare earth resources in Ukraine on Tuesday, including energy production plants and territories rich in raw materials. These resources are at the heart of the ceasefire negotiations.
UK Energy Minister Ed Miliband met Chinese officials in Beijing to discuss energy cooperation and reducing greenhouse gas emissions, despite disagreements over Hong Kong, forced labour, and the war in Ukraine.
The European Union has announced a €4.7 billion investment to support South Africa’s energy transition. This initiative is part of a broader strategy of economic cooperation and strategic repositioning of international partners.
The European Union has announced a €4.7 billion investment to support South Africa’s energy transition. This initiative is part of a broader strategy of economic cooperation and strategic repositioning of international partners.
American and Vietnamese companies have signed several commercial agreements totaling $4.15 billion, primarily in the energy and aviation sectors, aiming to reduce the trade imbalance between the two countries.
American and Vietnamese companies have signed several commercial agreements totaling $4.15 billion, primarily in the energy and aviation sectors, aiming to reduce the trade imbalance between the two countries.
Presidents Vladimir Putin and Nicolás Maduro announced an agreement to expand their cooperation, particularly in the energy sector. This initiative comes amid increased U.S. sanctions against Caracas.
Presidents Vladimir Putin and Nicolás Maduro announced an agreement to expand their cooperation, particularly in the energy sector. This initiative comes amid increased U.S. sanctions against Caracas.
Guyana’s President, Mohamed Irfaan Ali, reaffirmed his commitment to a diplomatic resolution of the territorial dispute with Venezuela over the Essequibo region as tensions escalate over offshore oil resources.
Donald Trump applies his negotiation methods to the energy sector, leveraging tariffs and targeted statements to influence markets and trading partners. Behind these decisions lies an ambiguous commercial strategy blending bluff and concrete actions.
Donald Trump applies his negotiation methods to the energy sector, leveraging tariffs and targeted statements to influence markets and trading partners. Behind these decisions lies an ambiguous commercial strategy blending bluff and concrete actions.
Newcleo and Danieli have signed a strategic agreement to integrate advanced nuclear reactors into steel production processes, aiming to eliminate fossil fuel use amid rising energy costs in Europe's industrial sectors.
Newcleo and Danieli have signed a strategic agreement to integrate advanced nuclear reactors into steel production processes, aiming to eliminate fossil fuel use amid rising energy costs in Europe's industrial sectors.
The U.S. Secretary of Energy has announced a strategic shift towards fossil fuels, abandoning several climate-related policies from the previous administration, creating uncertainty among energy professionals about long-term market stability.
The U.S. Secretary of Energy has announced a strategic shift towards fossil fuels, abandoning several climate-related policies from the previous administration, creating uncertainty among energy professionals about long-term market stability.

Advertising