Azerbaijan

  • With a population of around 10.3 million people (2022), Azerbaijan contributes only 0.15% of total global greenhouse gas (GHG) emissions, with 6.2 t CO2e per capita (2019) without land use and forestry (LULUCF) activities, and 5.4 t CO2e per capita with LULUCF[1].

     

    Energy and agriculture are two sectors with the largest GHG emission shares.

     

     

    The GHG emissions of Azerbaijan decreased between 1990 and 1995 by 37% to a level of about 52 Mio t CO2eq, which is about the same level as in 2010. Since then, GHG emissions increased by 19% to 61 Mio. t CO2eq in 2016, while GDP decreased in the same time by 14% caused by a collapse of oil prices. A decoupling of GHG emissions and GDP has not been observed in the period under review, which can be explained by the fossil-based economy.
    Azerbaijan committed in its first Nationally Determined Contribution (NDC) to achieve a quantitative target of a 35% GHG emissions’ reduction by 2030 compared to 1990. At COP 26 Azerbaijan announced a target of 40% GHG emission reduction by 2050.

     

    [1] Fourth National Communication of Azerbaijan to UNFCCC.

  • Azerbaijan’s NC3 reports an increase in temperatures across the country of 1.3°CC in 2010, relative to the average annual temperatures observed in the period 1961-1990. Temperatures in Azerbaijan are projected to rise at a faster rate than the global average, with potential warming of 4.7°C by the 2090s over the 1986–2005 baseline, under the highest emissions pathway (RCP8.5). According to the NC3 by optimistic scenario (RCP 4.5), the amount of water resources of Azerbaijan (together with transboundary water resources) will decrease by 5-10% in 2040 and by 10-15% in 2070 and by pessimistic scenario (RCP 8.5) by 10-15% in 2040 and by 15-25% in 2070 compared to current values.
    Due to its downstream location in the Kura basin, Azerbaijan is under the influence of high transboundary climate risks. For example, more than 70 percent of the country’s water resources are formed in the territory of neighboring countries. Therefore, any adaptation action necessary to be implemented in the country should be linked to transboundary climate risks[2].

     

    [2] Third National Communication of Azerbaijan to UNFCCC.

  • The physical and geographical characteristics of Azerbaijan make it a highly sensitive country to the adverse effects of climate change. Extreme weather events, such as flooding (1), drought (2), heat stress (3) are expected to increase in frequency.

     

  • A changing climate will also significantly impact the coastal zone. The most vulnerable sectors are agriculture, human health, water resources, forestry and tourism.

     

  • The Azerbaijan’s 2030 National Priorities for Socio-Economic Development states that the ecological environment must bebalanced with economic growth, ensuring that existing resources are revitalized and water resources are efficiently harnessed. To efficiently meet the energy needs of the country, it is planned to increase the implementation of alternative and renewable energy sources. Meanwhile, environmentally friendly green technologies must be promoted, and the share of alternative and renewable energy sources in primary consumption must be increased while reducing their impact on climate change. Measures to increase the usage of environmentally friendly vehicles can also have a positive impact on the environment and air quality.

Climate policy development and advancing cooperation with the EU in Azerbaijan

The European Union (EU)’s relations with Azerbaijan are based on the EU-Azerbaijan Partnership and Cooperation Agreement in force since 1999, while negotiations on a new bilateral agreement are ongoing. Azerbaijan is also part of the Eastern Partnership initiative and a member of the Organization of Black Sea Economic Cooperation (BSEC). A new Memorandum of Understanding (MoU) on a Strategic Partnership between Azerbaijan and the EU in the energy field was signed in 2022 that allows for enhanced cooperation on their energy partnership. The new MoU supports doubling the capacity of the Southern Gas Corridor as of 2027, reflecting the long-term nature of the energy partnership between the EU and Azerbaijan. The first-ever investment project backed by an E5P grant has been signed and will help to upgrade around 80% of street lighting infrastructure in the city of Ganja and produce significant energy savings.
Since 2021 the following climate-related policy documents have been adopted by the government of Azerbaijan:

  • The law “On the Use of Renewable Energy Sources in Electricity Generation,” was adopted on 31 May 2021 and approved on 12 July 2021.
  • Under the EU4Energy programme phase I – adoption of a law on “Rational use of energy resources and energy efficiency”, the development of the first “National Action Plan on Energy Efficiency of the Republic of Azerbaijan” and the Roadmap for accelerating the adoption of eco-design and labelling requirements for products using energy.
  • The project provided support to MoEnergy on establishing technical norms and standards for energy efficiency in buildings in line with EU and best international standards, such as:
    • Energy efficiency certification system introduced; Assessment of the existing billings standards in Azerbaijan;
    • Draft Rules for energy efficiency certification of buildings;
    • Approximation of the EU legal framework on eco-design and energy labeling;
    • Capacity building among relevant governmental and non-governmental Stakeholders and awareness-raising and communication programme on energy efficiency.
  • The “Azerbaijan 2030: National Priorities for Socio-economic Development” was approved on 2 February 2021. The 5th priority is a clean environment and a country of “green growth”. Azerbaijan is moving forward on its sustainable energy pathway, with strong support from the EU, including through the EU4Energy Initiative, and from international financing institutions.
    • 2014
      • 3rd National Communication
      • National Adaptation Strategy until 2020
      • Biennial Update Report 1 (BUR1)
    • 2015
      • INDC 2016-2030
      • COP21 Paris Agreement
      • Pledge to Sustainable Developent Agenda 2030
    • 2016
      • Strategic Road Map on National
      • Economic Perspectives until 2025
    • 2017
      • New EU Framework agreement
      • Ratification of Paris Agreement
    • 2018
      • EU-Azerbaijan yearly high level security
        dialogue launched
      • Biennial Update Report (BUR2)
    • 2019
      • EU4Climate launched
    • 2020
      • Update of the LEDS 2050 initiated
    • 2021
      • Fourth National Communication submitted
      • LEDS 2050 – the draft report is undergoing public consultations
    • 2022
      • MRV, CBT and Gender Mainstreaming in Energy and Agriculture reports submitted to the Government
    • 2023
      • Updated NDC 2021-2030 submitted to the government for approval
      • Updated LEDS 2050 submitted to the government for approval

EU4Climate key policy interventions and expected impact

 

  • Azerbaijan has already set several policies to pursue low-carbon, climate-resilient development. Another important dimension of the EU4Climate project activities in Azerbaijan is the development of criteria to align Azerbaijan’s legislation with EU standards and support the government in developing industry-specific guidelines. The Nationally Determined Contributions developed under the EU4Climate project come to assist the achievement of this goal.

  • The EU4Climate Programme, funded by the European Union, aims to support the development and implementation of climate-related policies by the Eastern Partnership countries. EU4Climate aims to support Azerbaijan in its commitment to update and enhance the country’s NDC, to build national capacities to integrate low-emission and climate-resilient actions into the national development plan as well as align climate change legislation with the EU standards.
    A robust domestic Measurement, Reporting and Verification (MRV) system will be established to inform the government and the international community of the progress of its NDC implementation. The programme will establish concrete industry-specific guidelines for the implementation of the Paris Agreement across various sectors of the economy, in particular agriculture and energy.

Result areas and timeframe in Azerbaijan

RESULT AREAS

2019

2020

2021

2022

 

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

NDC

Long-term LEDS

MRV System

EU Climate Acquis

Climate mainstreaming

Climate investment

Adaptation planning

Result areas and timeframe in Azerbaijan

  • Implementation of EU4Climate activities started in Azerbaijan in the second half of 2019, and laid the foundation for systematic implementation of the requirements of the Paris Agreement and the commitments of Azerbaijan under it.

Full country profile can be downloaded here.