Prospects for the development of the green economy in Azerbaijan

Asif Mustafayev  Tariyel  Musallim Qurbanov  Babayev Turgan Khalil

Journal number 2 ∘ Asif Mustafayev ∘ Tariyel Musallim Qurbanov ∘ Babayev Turgan Khalil ∘
Prospects for the development of the green economy in Azerbaijan

Annotation.The presented article is devoted to some problems related to the provision of green economy in Azerbaijan and ways to solve them. The article assessed the potential opportunities of Azerbaijan and noted state measures in this direction. It was especially noted that by hosting COP2024 at the end of 29, Azerbaijan once again confirmed the seriousness of the work done in this direction. In addition, the article emphasizes that the economic and environmental potential of the liberated territories of Azerbaijan will help to quickly achieve the country's goals for 2030. This is evidenced by the restoration work carried out in this direction.

Key words: green economy, environmental risks, renewable energy, economic development, sustainable development, COP29, etc.

İntroduction

A green economy is a concept of economic development aimed at improving human well-being and social equality, while significantly reducing environmental risks and environmental deficiencies. Green economy is also a concept that focuses on the harmonious combination of economic growth, social justice and environmental sustainability. It aims to create an economy that benefits people and the planet by minimizing negative environmental impacts. Looking at the main goals of this concept, we can note that ensuring sustainable development, as a result, is aimed at preventing and, in a sense, restoring the depletion of natural resources through their maximum efficient use. In addition, the protection of the ecological environment includes certain cost parameters in economic development in itself, which means the true nature of real economic growth.

It should be borne in mind that a green economy, like a sustainable economy, should ensure social justice. In this direction, a huge number of people around the world continue to live in conditions of extreme poverty. Meanwhile, environmental problems are also exacerbated. We tell how to overcome poverty without harming the land, and here in 2012, in a report by the International Association Oxfam, British economist Keith Ravort presented an alternative economic model-the "Donut economy". This concept involves achieving economic success by reducing inequality in society and avoiding the destruction of the planet. This concept was quickly recognized internationally, including at the UN level. Already in 2017, Kate published the book "Donut economics: seven ways to think like an economist of the XXI century", which quickly became a bestseller and attracted the attention of industry experts. Against this background, more developed countries, where the level and quality of life are many times higher, increase the impact on ecology. Global warming observed today is the strongest in the last 200 thousand years, notes Petteri Taalas, secretary general of the World Meteorological Organization (WTO). In the report, the Intergovernmental Panel on Climate Change (IPCC) notes that compared to the level of 2010, carbon dioxide emissions need to be reduced by 2030 by about 45%. Creating a balance between human needs and environmental tasks is the goal of the economy model developed by Kate Ravort. For this, the donut consists of two rings: the social foundation (inner ring) and the ecological ceiling. [1].

Main part

It should be borne in mind that every year events of various levels are held to ensure the green economy and maintain the ecological balance in the world. One of them is the COP event, which has been held since 1995. The first event of the Conference of parties to the UN Framework Convention on Climate Change, hosted annually by a different country, was held in Berlin in March 1995, and the last-its 28th Session (COP28)-in Dubai, United Arab Emirates in 2023. The 29th Session of the conference of the parties, i.e. COP29, will be held in November this year in Azerbaijan, in Baku. The decision was made at the plenary session of COP28 in Dubai on December 11 last year. This is the world's number one international event, an international conference, not inferior to the UN General Assembly in terms of representation of countries. Baku will be the center of the world in two weeks, and the city will welcome about 70-80 thousand foreign guests.

One of the most important positive results of the conference is the further improvement of the quality of tourism services in the country. Of course, hundreds of new professional specialists in the field of Tourism and logistics will be trained, the quality of Tourism and public services will change in connection with the solution of many problems. A qualitative change is also expected in the field of Regional tourism, new routes and morning tours will be organized.

The holding of COP29 in Azerbaijan is, first of all, a recognition by the UN of Azerbaijan's fulfillment of its obligations on the climate issue. In addition, the holding of COP29 in Azerbaijan testifies to the recognition of political and economic stability in the country at the UN level.

Azerbaijan has participated in numerous political, economic and regional development projects. For example, for the fourth year in a row, our country chairs the second largest international organization after the UN-the Non – Aligned Movement. Azerbaijan has signed a declaration of strategic partnership with nine members of the European Union. This is a unique example in world politics, because very few countries are simultaneously members of the Organization of Islamic Cooperation and the Council of Europe. [2].

The main reform goal of Azerbaijan is to ensure the “green economy”

The decision to hold COP29 in Baku also signifies global support for Azerbaijan's green energy policy. Accordingly, by Order of the president of the Republic of Azerbaijan Ilham Aliyev, 2024 was declared the “year of solidarity for the Green world” in Azerbaijan. Being an oil and gas country, Azerbaijan has identified the creation of green energy and the transportation of green energy to world markets as a new priority direction of energy policy. The export of electricity produced on the basis of renewable and green energy has led to the beginning of a new era in Azerbaijan's energy strategy. Azerbaijan's renewable energy potential is very high. By 2030, the share of renewable energy in electricity investment is expected to increase to 30 percent in Azerbaijan. According to statistics, the technical potential of renewable energy sources in our country is 135 gigawatts on land and 157 gigawatts at sea. The economic potential of renewable energy sources is 27 gigawatts, including 3 thousand megawatts for wind energy, 23 thousand megawatts for solar energy, and bioenergy potential is 380 megawatts. The potential of mountain rivers is estimated at 520 megawatts. [3].

In other respects, assessing the potential of Azerbaijan in this direction, we can note that Azerbaijan, as a country with rich natural resources and a diverse climate, has significant potential for the development of a green economy. Consider the main areas where Azerbaijan can develop a green economy:

1. On renewable energy sources

Solar energy: Azerbaijan has a high potential for solar energy, especially in the southern regions, where the sunny days of the year are much higher than the average. The development of solar farms and the installation of solar panels in residential and commercial buildings can significantly reduce dependence on fossil fuels.

Wind energy: Azerbaijan's wind resources are particularly large in the coastal regions and elevations of the Caspian Sea. The installation of wind turbines and the development of wind energy parks can be a significant contribution to energy independence and environmental sustainability.

Hydropower: Azerbaijan has several rivers and reservoirs that can be used for hydroelectric power generation.

The development of small and medium-sized hydroelectric plants can contribute to the sustainable energy supply of remote and rural areas.

It can be noted that Azerbaijan is actively developing the renewable energy sector and reducing its dependence on oil revenues, which is seen as a step towards a green economy as a whole. In addition, Azerbaijan has committed to reducing greenhouse gas emissions by joining the Paris Agreement on climate change in 2016. The agreement provides for a reduction in greenhouse gas emissions on the planet as a whole with the aim of limiting global warming to 2 degrees relative to the pre-industrial period. As part of its obligations under the agreement, Azerbaijan has prepared a National Action Plan on Climate Change, which includes specific measures to reduce greenhouse gas emissions. In particular, in this aspect, the country plans to increase the share of renewable energy in electricity generation, as well as the energy efficiency of buildings and vehicles. Azerbaijan's National Action Plan on climate change, approved in 2018, includes the following key points:

1. Reducing greenhouse gas emissions. Azerbaijan has pledged to reduce greenhouse gas emissions by 2030 compared to 1990 by 35%.

2. Development of renewable energy. Azerbaijan plans to increase the share of renewable energy in total electricity generation by 2030 to 30%.

3. Energy efficiency of buildings and transport. He set as his goal to develop and implement programs to improve the energy efficiency of buildings and vehicles in Azerbaijan.

4. Protection of forests. Azerbaijan undertakes not only to preserve forest resources, but also to improve their management and use [4].

In cooperation with international organizations, Azerbaijan has received financial support for the implementation of projects in the field of renewable energy and energy efficiency. For example, the World Bank has allocated $ 400 million to Azerbaijan to finance energy and climate projects. Thus, Azerbaijan is actively working on the implementation of measures to reduce greenhouse gas emissions and more efficient use of resources, which allows the country to be viewed as an active participant in the green economy.

2. On energy efficiency and emission reduction:

Infrastructure modernization: application of energy efficient technologies in the construction and reconstruction of buildings.

Stimulation of enterprises: creation of economic incentives for companies implementing environmentally friendly production processes and technologies.

Electric transport: development of infrastructure for electric vehicles, including charging stations, and stimulation of the use of clean transport.

3. On agriculture and Land Management

Organic farming: support and development for organic farming, which uses methods to minimize harmful environmental impacts.

Rational use of Water Resources: application of drip irrigation technologies and other methods of rational use of water in agriculture.

Land use and reforestation: degraded soils and reforestation programs that help preserve biodiversity and prevent soil erosion.

It should be borne in mind that over the past 20 years, the forest area on the total land area has increased by 2.8 percent in Azerbaijan. Based on the data given in Graph 1, we can note that serious measures of the state in this direction are expected for the prospective period. In particular, taking into account the work carried out to restore the liberated territories, serious development in this direction is expected.

Source: [5]

4. On Waste Management and recycling

Waste separation and recycling: creation of a system for separate collection and processing of household and industrial waste.

Composting: application of organic waste composting technologies that can be useful for both agricultural and urban green spaces.

Plastic reduction: programs to reduce the use of disposable plastic and develop alternative materials.

Speaking about the holding of the 29th conference of the UN Framework Convention on climate change (the Conference of Parties) in Baku (COP-29), The Economist recalled that according to the agreement adopted, the volume of carbon dioxide (CO2) emissions accelerating global warming is planned to be reduced in 2025 compared to the volume in 2005 by 28% and in 2030 by 45%.

"China alone accounts for 36.7% of these gases, which create a greenhouse effect in the energy and industrial sectors (2021 billion 11 million tons in 336). According to the results of 2021, the next 4 top countries: USA (5 billion 032 million tons), India (2 billion 674 million tons), Russia (1 billion 712 million tons), Japan (1 billion 602 million tons). In general, 10 countries have a 67% “share” in all carbon dioxide emissions. Given the above, it is not only natural for developed countries to finance projects against climate change (sometimes more stringent requirements are put forward against smaller countries or financing projects is presented as a blessing), but they are even obliged to do more in this direction and allocate more funding to the issue”. [6]

Given that carbon dioxide (CO2) emissions worldwide have increased by more than 1990% since 60, it is certainly commendable that Azerbaijan has shown a fairly large decrease in this indicator.” A more realistic situation in this direction in Azerbaijan is presented in the following graph (see graph 2).

Source: https://data.worldbank.org/country/azerbaijan

5. On ecological tourism:

Development of natural parks and reserves: creation and development of national parks, reserves and ecological paths that can attract tourists and contribute to the conservation of natural areas.

Support for local communities: involving local communities in the development of ecotourism, which can create jobs and stimulate local economic development.

The result

Thanks to its natural resources, geographical location and desire to modernize the economy, Azerbaijan has significant potential for the development of the green economy. A successful transition to a green economy requires comprehensive development in various sectors, including energy, agriculture, waste management, tourism and legislation. Successful implementation of these initiatives will require joint efforts of government, business and civil society.

Literature

https://trends.rbc.ru/trends/green/6375d8f59a79471bf94c1947?from=copy
https://ereforms.gov.az
https://president.az/az/articles/view/62562
Azerbaijan's National Action Plan on climate change (2018). https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Azerbaijan
https://data.worldbank.org/country/azerbaijan
https://banco.az

EKONOMISTI The international scientific and analytical, reviewed, printing and electronic journal of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University

DOI: 10.36172/EKONOMISTI E ISSN 2346-8432 Print ISSN 1987-6890	Journal number 2 ∘ Asif Mustafayev ∘ Tariyel Musallim Qurbanov ∘ Babayev Turgan Khalil ∘ Prospects for the development of the green economy in Azerbaijan *Annotation.The presented article is devoted to some problems related to the provision of green economy in Azerbaijan and ways to solve them. The article assessed the potential opportunities of Azerbaijan and noted state measures in this direction. It was especially noted that by hosting COP2024 at the end of 29, Azerbaijan once again confirmed the seriousness of the work done in this direction. In addition, the article emphasizes that the economic and environmental potential of the liberated territories of Azerbaijan will help to quickly achieve the country's goals for 2030. This is evidenced by the restoration work carried out in this direction. Key words:* green economy, environmental risks, renewable energy, economic development, sustainable development, COP29, etc. İntroduction A green economy is a concept of economic development aimed at improving human well-being and social equality, while significantly reducing environmental risks and environmental deficiencies. Green economy is also a concept that focuses on the harmonious combination of economic growth, social justice and environmental sustainability. It aims to create an economy that benefits people and the planet by minimizing negative environmental impacts. Looking at the main goals of this concept, we can note that ensuring sustainable development, as a result, is aimed at preventing and, in a sense, restoring the depletion of natural resources through their maximum efficient use. In addition, the protection of the ecological environment includes certain cost parameters in economic development in itself, which means the true nature of real economic growth. It should be borne in mind that a green economy, like a sustainable economy, should ensure social justice. In this direction, a huge number of people around the world continue to live in conditions of extreme poverty. Meanwhile, environmental problems are also exacerbated. We tell how to overcome poverty without harming the land, and here in 2012, in a report by the International Association Oxfam, British economist Keith Ravort presented an alternative economic model-the "Donut economy". This concept involves achieving economic success by reducing inequality in society and avoiding the destruction of the planet. This concept was quickly recognized internationally, including at the UN level. Already in 2017, Kate published the book "Donut economics: seven ways to think like an economist of the XXI century", which quickly became a bestseller and attracted the attention of industry experts. Against this background, more developed countries, where the level and quality of life are many times higher, increase the impact on ecology. Global warming observed today is the strongest in the last 200 thousand years, notes Petteri Taalas, secretary general of the World Meteorological Organization (WTO). In the report, the Intergovernmental Panel on Climate Change (IPCC) notes that compared to the level of 2010, carbon dioxide emissions need to be reduced by 2030 by about 45%. Creating a balance between human needs and environmental tasks is the goal of the economy model developed by Kate Ravort. For this, the donut consists of two rings: the social foundation (inner ring) and the ecological ceiling. [1]. Main part It should be borne in mind that every year events of various levels are held to ensure the green economy and maintain the ecological balance in the world. One of them is the COP event, which has been held since 1995. The first event of the Conference of parties to the UN Framework Convention on Climate Change, hosted annually by a different country, was held in Berlin in March 1995, and the last-its 28th Session (COP28)-in Dubai, United Arab Emirates in 2023. The 29th Session of the conference of the parties, i.e. COP29, will be held in November this year in Azerbaijan, in Baku. The decision was made at the plenary session of COP28 in Dubai on December 11 last year. This is the world's number one international event, an international conference, not inferior to the UN General Assembly in terms of representation of countries. Baku will be the center of the world in two weeks, and the city will welcome about 70-80 thousand foreign guests. One of the most important positive results of the conference is the further improvement of the quality of tourism services in the country. Of course, hundreds of new professional specialists in the field of Tourism and logistics will be trained, the quality of Tourism and public services will change in connection with the solution of many problems. A qualitative change is also expected in the field of Regional tourism, new routes and morning tours will be organized. The holding of COP29 in Azerbaijan is, first of all, a recognition by the UN of Azerbaijan's fulfillment of its obligations on the climate issue. In addition, the holding of COP29 in Azerbaijan testifies to the recognition of political and economic stability in the country at the UN level. Azerbaijan has participated in numerous political, economic and regional development projects. For example, for the fourth year in a row, our country chairs the second largest international organization after the UN-the Non – Aligned Movement. Azerbaijan has signed a declaration of strategic partnership with nine members of the European Union. This is a unique example in world politics, because very few countries are simultaneously members of the Organization of Islamic Cooperation and the Council of Europe. [2]. The main reform goal of Azerbaijan is to ensure the “green economy” The decision to hold COP29 in Baku also signifies global support for Azerbaijan's green energy policy. Accordingly, by Order of the president of the Republic of Azerbaijan Ilham Aliyev, 2024 was declared the “year of solidarity for the Green world” in Azerbaijan. Being an oil and gas country, Azerbaijan has identified the creation of green energy and the transportation of green energy to world markets as a new priority direction of energy policy. The export of electricity produced on the basis of renewable and green energy has led to the beginning of a new era in Azerbaijan's energy strategy. Azerbaijan's renewable energy potential is very high. By 2030, the share of renewable energy in electricity investment is expected to increase to 30 percent in Azerbaijan. According to statistics, the technical potential of renewable energy sources in our country is 135 gigawatts on land and 157 gigawatts at sea. The economic potential of renewable energy sources is 27 gigawatts, including 3 thousand megawatts for wind energy, 23 thousand megawatts for solar energy, and bioenergy potential is 380 megawatts. The potential of mountain rivers is estimated at 520 megawatts. [3]. In other respects, assessing the potential of Azerbaijan in this direction, we can note that Azerbaijan, as a country with rich natural resources and a diverse climate, has significant potential for the development of a green economy. Consider the main areas where Azerbaijan can develop a green economy: 1. On renewable energy sources Solar energy: Azerbaijan has a high potential for solar energy, especially in the southern regions, where the sunny days of the year are much higher than the average. The development of solar farms and the installation of solar panels in residential and commercial buildings can significantly reduce dependence on fossil fuels. Wind energy: Azerbaijan's wind resources are particularly large in the coastal regions and elevations of the Caspian Sea. The installation of wind turbines and the development of wind energy parks can be a significant contribution to energy independence and environmental sustainability. Hydropower: Azerbaijan has several rivers and reservoirs that can be used for hydroelectric power generation. The development of small and medium-sized hydroelectric plants can contribute to the sustainable energy supply of remote and rural areas. It can be noted that Azerbaijan is actively developing the renewable energy sector and reducing its dependence on oil revenues, which is seen as a step towards a green economy as a whole. In addition, Azerbaijan has committed to reducing greenhouse gas emissions by joining the Paris Agreement on climate change in 2016. The agreement provides for a reduction in greenhouse gas emissions on the planet as a whole with the aim of limiting global warming to 2 degrees relative to the pre-industrial period. As part of its obligations under the agreement, Azerbaijan has prepared a National Action Plan on Climate Change, which includes specific measures to reduce greenhouse gas emissions. In particular, in this aspect, the country plans to increase the share of renewable energy in electricity generation, as well as the energy efficiency of buildings and vehicles. Azerbaijan's National Action Plan on climate change, approved in 2018, includes the following key points: 1. Reducing greenhouse gas emissions. Azerbaijan has pledged to reduce greenhouse gas emissions by 2030 compared to 1990 by 35%. 2. Development of renewable energy. Azerbaijan plans to increase the share of renewable energy in total electricity generation by 2030 to 30%. 3. Energy efficiency of buildings and transport. He set as his goal to develop and implement programs to improve the energy efficiency of buildings and vehicles in Azerbaijan. 4. Protection of forests. Azerbaijan undertakes not only to preserve forest resources, but also to improve their management and use [4]. In cooperation with international organizations, Azerbaijan has received financial support for the implementation of projects in the field of renewable energy and energy efficiency. For example, the World Bank has allocated $ 400 million to Azerbaijan to finance energy and climate projects. Thus, Azerbaijan is actively working on the implementation of measures to reduce greenhouse gas emissions and more efficient use of resources, which allows the country to be viewed as an active participant in the green economy. 2. On energy efficiency and emission reduction: Infrastructure modernization: application of energy efficient technologies in the construction and reconstruction of buildings. Stimulation of enterprises: creation of economic incentives for companies implementing environmentally friendly production processes and technologies. Electric transport: development of infrastructure for electric vehicles, including charging stations, and stimulation of the use of clean transport. 3. On agriculture and Land Management Organic farming: support and development for organic farming, which uses methods to minimize harmful environmental impacts. Rational use of Water Resources: application of drip irrigation technologies and other methods of rational use of water in agriculture. Land use and reforestation: degraded soils and reforestation programs that help preserve biodiversity and prevent soil erosion. It should be borne in mind that over the past 20 years, the forest area on the total land area has increased by 2.8 percent in Azerbaijan. Based on the data given in Graph 1, we can note that serious measures of the state in this direction are expected for the prospective period. In particular, taking into account the work carried out to restore the liberated territories, serious development in this direction is expected. Source: [5] 4. On Waste Management and recycling Waste separation and recycling: creation of a system for separate collection and processing of household and industrial waste. Composting: application of organic waste composting technologies that can be useful for both agricultural and urban green spaces. Plastic reduction: programs to reduce the use of disposable plastic and develop alternative materials. Speaking about the holding of the 29th conference of the UN Framework Convention on climate change (the Conference of Parties) in Baku (COP-29), The Economist recalled that according to the agreement adopted, the volume of carbon dioxide (CO2) emissions accelerating global warming is planned to be reduced in 2025 compared to the volume in 2005 by 28% and in 2030 by 45%. "China alone accounts for 36.7% of these gases, which create a greenhouse effect in the energy and industrial sectors (2021 billion 11 million tons in 336). According to the results of 2021, the next 4 top countries: USA (5 billion 032 million tons), India (2 billion 674 million tons), Russia (1 billion 712 million tons), Japan (1 billion 602 million tons). In general, 10 countries have a 67% “share” in all carbon dioxide emissions. Given the above, it is not only natural for developed countries to finance projects against climate change (sometimes more stringent requirements are put forward against smaller countries or financing projects is presented as a blessing), but they are even obliged to do more in this direction and allocate more funding to the issue”. [6] Given that carbon dioxide (CO2) emissions worldwide have increased by more than 1990% since 60, it is certainly commendable that Azerbaijan has shown a fairly large decrease in this indicator.” A more realistic situation in this direction in Azerbaijan is presented in the following graph (see graph 2). Source: https://data.worldbank.org/country/azerbaijan 5. On ecological tourism: Development of natural parks and reserves: creation and development of national parks, reserves and ecological paths that can attract tourists and contribute to the conservation of natural areas. Support for local communities: involving local communities in the development of ecotourism, which can create jobs and stimulate local economic development. The result Thanks to its natural resources, geographical location and desire to modernize the economy, Azerbaijan has significant potential for the development of the green economy. A successful transition to a green economy requires comprehensive development in various sectors, including energy, agriculture, waste management, tourism and legislation. Successful implementation of these initiatives will require joint efforts of government, business and civil society. Literature https://trends.rbc.ru/trends/green/6375d8f59a79471bf94c1947?from=copy https://ereforms.gov.az https://president.az/az/articles/view/62562 Azerbaijan's National Action Plan on climate change (2018). https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Azerbaijan https://data.worldbank.org/country/azerbaijan https://banco.az