The green transformation has become the mantra of every country in the world. Chinese President Xi Jinping has been instrumental in leading the country and the world toward achieving the desired goals of green energy development. Additionally, it has become a key strategic priority of Azerbaijan, which has been awarded the opportunity to host COP29 in 2024. President Ilham Heydar Aliyev has issued a decree declaring 2024 as ‘Green Azerbaijan,’ vividly reflecting his futuristic plans to diversify and transform his country’s energy outlook.

The Chinese government considers green development and environmental protection as top priorities, integrating these strategies into all aspects of the country’s socio-economic development plans. The country has taken innovation-driven development as a driving force for economic development, helping its economy switch to green and high-quality growth.

China is now the world’s largest producer of clean energy equipment. In 2021, the output value of the energy conservation and environmental protection industry exceeded 1.13 trillion dollars. China’s export of three tech-intensive green products, namely solar batteries, lithium-ion batteries and electric vehicles, registered a 66.9 percent increase in the first quarter of this year, official data showed. Together they contributed 2 percentage points to the overall export growth, up from 1.7 percentage points for 2022.

Most recently, President Ilham Aliyev signed a decree declaring 2024 as the Green World Solidarity Year, reaffirming Azerbaijan’s commitment to global climate change efforts. The document aims to provide a framework for the 2024 UN Climate Change Conference (COP29), scheduled to take place in Azerbaijan later this year. The hosting of COP29 in the country vividly demonstrates the international community’s profound respect and trust in Azerbaijan. It acknowledges the nation’s efforts in environmental protection and addressing climate change at national, regional, and global levels.

According to the China Association of Automobile Manufacturers, China’s new energy vehicle (NEV) sales nearly doubled to 6.89 million units in 2022, accounting for over a quarter of the total automobile sales in the world’s largest auto market.

Chinese involvement in Ethiopia’s renewable energy sector is visible. They are increasingly involved in both hydro and wind power projects.

The Aysha Wind Farm, the first wind power project in the Somali region presently under the construction of China’s Dongfang Electric Corporation, is expected to provide power to Ethiopia’s mega-development projects, such as the Addis Ababa-Djibouti railway and Dire Dawa Industrial Park, and ensure a stable and sufficient power supply for the Addis Ababa-Djibouti economic corridor.

In Kenya, official figures showed that the installed capacity of solar power is more than 100 MW, while the China-financed Garissa Solar power plant accounts for 50 MW.

Kenyan President Uhuru Kenyatta said that Garissa Solar, the largest solar plant in East and Central Africa, puts Kenya on the path to achieve green energy sufficiency and adds to his country’s rich profile as the center of green energy generation in Africa

On its part, Azerbaijan has started to actively participate in numerous de-carbonization initiatives to address the potential risks of climate change. The laws on efficient use of energy resources and energy efficiency, national action plan on energy efficiency and roadmap to accelerate the adoption of eco-Design and labelling requirements for energy-using products have been institutionalized.

The “Azerbaijan 2030: National Priorities for Socio-Economic Development” program has become the driving force in achieving the desired goals of green energy development in the country. The law “On the use of renewable energy sources in the production of electricity” has become instrumental to expand the action plan in the speedy transition to clean energy.

Green energy has great prospects in Azerbaijan. It has already announced to generate 30 percent of its electricity from renewable sources and to export 4 GW of energy to Europe through the cables passing the Black Sea by 2030, which has great trans-regional socio-economic, geopolitical, and geostrategic multiplier effects.

Azerbaijan has committed to reducing its greenhouse gas emissions by 30 percent from 1990 levels by 2030 and by 40 percent by 2050, as part of the Paris Climate Agreement. To achieve this strategic goal, it has formed the Renewable Energy Agency, which ensures the active participation of the private sector in the country. Ultimately, it has increased the share of installed electricity generation from renewable energy sources.

In October 2023, a 230-megawatt solar power plant in Baku’s Garadagh district with an investment from Masdar was inaugurated. The $200m station will produce 1.5 billion kilowatt hours of energy per year and will reduce carbon emissions by 200,000 tons.

It is a good omen that Azerbaijan’s renewable energy potential promises multiple advantages for the country. Relying more on renewable energy would help Azerbaijan save natural gas for exports and for use in the petrochemical industry; reduce the country’s GHG emissions to meet its 2030 Paris Agreement commitment; and improve electricity security by diversifying generation,” the expert concluded.

To conclude, Azerbaijan is an important player in the South Caucasus region, which is also a crucial part of the Silk Road Economic Belt. China and Azerbaijan signed a MOU on construction of the Silk Road Economic Belt.

The Baku-Tbilisi-Kars railway is designed to connect the Trans-European and Trans-Asian railway networks. It provides Turkmenistan, Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Afghanistan with access to the European and world markets, and thus vital for the BRI’s trans-regional connectivity.

China is considering expanding its cargo deliveries to Europe, and the Baku-Tbilisi-Kars railway may become an ideal route connecting Beijing and Europe.

The Baku International Sea Trade Port is being created in the Alat settlement of Baku, which will be of special significance in making Azerbaijan an international transport hub. Chinese companies’ heavy investments in Azerbaijan mean that Beijing-Baku cooperation is promising.

In November 2024, Azerbaijan will host the COP29 climate summit. According to some estimates, during this period it will host approximately 70-80,000 foreign guests which will further enhance its soft image and attract more and more foreign direct investments in the country. Hopefully, the dreams of “Green Azerbaijan” will be materialized under the leadership of Ilham Aliyev and private companies of Pakistan should explore opportunities to invest in the newly liberated areas in green energy development.