BAKU, Azerbaijan, June 3. The European Financial institution for
Reconstruction and Growth (EBRD) stands able to collaborate
carefully with Azerbaijan to make sure COP29 is a profitable and
impactful occasion, advancing our shared objectives of sustainability and
local weather motion, Alkis Vryenios Drakinos, Director, Regional Head of
the Caucasus for the EBRD, informed Pattern in an unique interview.
“Our staff in Baku, but additionally these unfold throughout our totally different
international locations can be supporting Azerbaijan in leveraging the
alternative offered by the convention to mobilize inexperienced finance
on a nationwide, regional, and international scale,” he stated.
Drakinos identified that Azerbaijan’s function in advancing local weather
motion and sustainability objectives is changing into more and more
vital.
“The nation has taken a pole place within the Caucasus when it
involves deploying utility-scale photo voltaic and wind vitality era
capability, and the EBRD has been instrumental in facilitating this.
As the most important institutional investor in Azerbaijan, and the
local weather finance chief within the area, we’re a pure companion for
Azerbaijan’s bold decarbonization agenda,” the official
famous.
The EBRD rep reminded that the financial institution not too long ago financed the primary
utility-scale privately owned wind energy plant within the Absheron and
Khizi areas, following funding within the first utility-scale
solar energy plant in Garadagh final yr.
“We’re additionally enhancing vitality effectivity in Ganja below our
flagship Inexperienced Cities program. On the coverage entrance, our
collaboration on renewable vitality auctions has led to the deliberate
improvement of a solar energy plant challenge in Garadagh. We now need
to assist carry this momentum ahead and we consider that COP29 is a
nice alternative,” Drakinos stated.
EBRD’s function in renewable vitality auctions launch in
Azerbaijan
He additional famous that the EBRD has been supporting Azerbaijan’s
Ministry of Power in growing a strong authorized and regulatory
framework to make sure the success of the renewable vitality auctions
launch.
“We help auctions as a result of, by competitors and
clear procedures, beneficiary international locations get the very best
costs from worldwide high quality bidders. To make sure the success
and effectiveness of those auctions, the EBRD has been supporting
the Ministry of Power in growing a strong authorized and regulatory
framework. This consists of contributions to the brand new Renewable Power
Regulation, which supplies the mandatory basis for aggressive
bidding processes. Our expertise in supporting comparable auctions in
international locations like Uzbekistan, Albania, and Serbia has proven that such
frameworks are very profitable in mobilizing non-public sector
financing and high-quality challenge supply,” he stated.
In line with Drakinos, the launch of the primary renewable vitality
public sale for a solar energy plant in Garadagh represents a
vital milestone within the nation’s journey in the direction of
decarbonization and sustainable vitality improvement, “a game-changer
for Azerbaijan’s inexperienced vitality agenda”.
“The first goal of those auctions is to draw non-public
funding in utility-scale renewable vitality tasks, growing
the renewable vitality share of Azerbaijan’s put in electrical energy
era capability. By serving to foster a aggressive and
clear procurement course of, we intention to assist be certain that the
greatest tasks are chosen, driving each innovation and effectivity
within the sector,” he elaborated.
The EBRD official additionally spoke in regards to the outcomes of such
auctions. “They’re designed to diversify Azerbaijan’s vitality combine,
lowering reliance on fossil fuels, and serving to the nation meet its
worldwide local weather commitments. That is notably related
now because the nation prepares to host the COP29 local weather convention in
Baku later this yr. Investments in renewables can even stimulate
financial progress and diversification by creating jobs and
encouraging technological developments throughout the vitality sector. We
stay devoted to supporting Azerbaijan’s renewable vitality
ambitions and look ahead to persevering with our collaboration on this
transformative journey”.
Selling connectivity by the Center
Hall
Additional talking, Alkis Drakinos highlighted the financial institution’s help
supplied for the event of the Trans-Caspian Worldwide
Transport Route (TITR), or the so-called Center Hall. As such,
the financial institution might take into account supporting further tasks alongside the
route.
“Being a demand-driven establishment, the EBRD will take into account
supporting further tasks alongside the Center Hall supplied
these tasks are bankable and meet our required governance,
transparency, environmental, and procurement requirements. Eligible
tasks in help of this challenge addressing both transit,
commerce, and vitality potential or infrastructure gaps in the identical
sectors could also be forwarded to the EBRD for consideration by any amongst
the three South Caucasus international locations in addition to from Central Asia,”
he stated.
In line with Drakinos, over time, the EBRD has been
supporting tasks selling connectivity amongst all its 38
international locations of operations. “Connectivity is in truth a precedence theme
in most of our Nation Methods. I personally align myself with
those who see connectivity as a key driver for financial progress and
prosperity in addition to a method of accelerating the understanding and
cooperation amongst international locations and peoples,” he stated, including that the
South Caucasus performs notably vital function on this
course of.
“I’m totally conscious of the strategic significance of the South
Caucasus area in growing considerably worldwide commerce
throughout sectors together with renewable vitality, taking part in a catalytic function
as a bridge connecting Asia with Europe in addition to throughout the South
Caucasus area international locations. Extra notably, Azerbaijan’s
geographical location, infrastructure networks, financial
resilience, pure sources wealth, and renewables potential,
place the nation within the epicenter of the Center Hall,”
Drakinos identified.
The EBRD rep additional added that, thus far, the financial institution has supported
Azerbaijan’s transit potential alongside the Center Hall by signing
a monetary bundle of 38.7 million euros for ASCO transport
firm, to finance the acquisition of two vessels that can be
navigating by the Black Sea buying and selling meals commodities from
South America in the direction of Central Asia by Georgia’s ports within the
Again Sea, after which through vans or trains to the port of Baku
crossing the Caspian till their ultimate vacation spot.
Contemplating future Southern Gasoline Hall
financing
Discussing the potential financing for the long run enlargement of
the Southern Gasoline Hall (SGC), Drakinos talked about that the financial institution
would possibly take into account collaborating within the initiative.
“Azerbaijan has been a long-standing companion of the EBRD for
three many years. Prior to now, the EBRD supported the SGC by
financing its key elements. We perceive that the capability of
the SGC is expandable, and will a call be made to pursue this
enlargement by the Azerbaijani authorities if approached, we may
take into account participating with the challenge,” he stated.
The EBRD, as a transition financial institution, views local weather mitigation and
adaptation as important transition processes, Drakinos famous.
“Given this angle, we acknowledge the challenges confronted by
hard-to-abate sectors in our international locations. Due to this fact, we acknowledge a
restricted scope for fossil gas investments, provided that they will
speed up decarbonization”.
He identified that to finance the challenge, it should align with
the objectives of the Paris Settlement and the financial institution’s stance on fossil
fuels. “This consists of strict adherence to standards designed to
mitigate the chance of carbon lock-in and promote low-carbon fuel
transportation. Doubtlessly, any future cooperation on the SGC
would maybe must reveal the capability to move
low-carbon gases and guarantee future-proofing of the infrastructure
to accommodate these necessities,” Drakinos defined.
“The EBRD is dedicated to making sure that any investments we
help contribute to a sustainable and low-carbon future. This
implies that tasks just like the enlargement of the SGC should not solely
meet present vitality wants but additionally be aligned with future calls for
for cleaner vitality. By integrating these rules, we intention to
help Azerbaijan in its efforts to attain a swift and resilient
vitality transition,” the official added.
EBRD’s new Nation Technique for
Azerbaijan
Supporting Azerbaijan’s future financial diversification by
strengthening sectors exterior oil and fuel and fossil fuels stays
one of many foremost priorities for the EBRD, Drakinos pointed
out.
“To this point the EBRD has supported Azerbaijan’s financial
improvement by investing in 190 tasks of three.8 billion euros in
worth. Most of this funding has been oriented in the direction of Azerbaijan’s
sustainable infrastructure together with within the vitality sector. Our
yearly degree of investments has been various in tandem with demand
for bankable tasks from Azerbaijan’s non-public sector and the
state sector,” he stated.
In line with Drakinos, the financial institution is involved in boosting its
share of personal sector operations. “I can anticipate that within the
coming years, investments in help of personal sector improvement
together with by our rising community of companion banks, the Center
Hall, and going through the worldwide problem of local weather change primarily
by energy era from renewable sources and subsequent
enhancements on the nationwide grid, can be at giant our areas of
operational focus”.
“In all our operations we are going to proceed supporting inexperienced
transition, inclusion, and digitalization according to our personal
priorities and strategic path as an establishment. The above
operational instructions can be outlined in our forthcoming Nation
Technique for Azerbaijan that can cowl the interval 2024 – 2029,” he
famous.
The EBRD rep additionally identified that the financial institution is in discussions
with the Azerbaijani authorities and the non-public sector in regards to the
Nation Technique precedence themes.
“We anticipate to finish the method and submit the Nation
Technique to our shareholders for his or her approval later in 2024,” he
added.
In conclusion, Drakinos added that the 30 year-long partnership
of EBRD with Azerbaijan is at present at a constructive juncture steered
by frequent high-level conferences fostering a forward-looking and
additional enhancing cooperation on agreed strategic instructions.
“For the mid- to long-term, our partnership with Azerbaijan will
be at giant captured by our forthcoming Nation Technique for
Azerbaijan 2024-2029. Precedence themes within the Technique will embody
fostering reform in the direction of non-public sector improvement, improved
governance, and commercialisation of SOE insurance policies, supporting
funding and reform to handle regional challenges such because the
success of the Center Hall in addition to international challenges corresponding to
local weather change. On this context, speedy future cooperation
already consists of help for the success of COP29 this coming
November in Baku,” Alkis Vryenios Drakinos concluded.
