Azerbaijan's role in energising Middle Corridor: Path to sustainable economic growth

The recent panel discussion at the annual meeting of the Asian Development Bank (ADB) has underscored the pivotal role of Azerbaijan in revitalising the Middle Corridor and bolstering European connectivity. With a focus on enhancing trade links between Europe and Asia, discussions have centred on the potential of this corridor to catalyse economic growth and integration in the region.

A key aspect of Azerbaijan's contribution to the Middle Corridor initiative lies in its commitment to renewable energy development. Samir Sharifov, the Minister of Finance and Governor for Azerbaijan at the ADB, emphasised Azerbaijan's dedication to diversifying its economy away from traditional oil and gas reliance towards renewable energy sources. This strategic shift not only aligns with global sustainability goals but also positions Azerbaijan as a proactive player in shaping the future of energy.

Sharifov highlighted Azerbaijan's upcoming role as the host of COP29, a crucial global climate conference. This platform will provide Azerbaijan with an opportunity to showcase its commitment to sustainability and renewable energy leadership on the world stage. Furthermore, he outlined ambitious plans for Azerbaijan to ramp up renewable energy production to up to 5 GW by 2030, leveraging both public investment and private capital. This proactive approach not only enhances energy security but also fosters innovation and economic diversification.

In line with these efforts, the World Bank has stepped in to support the preparation of a feasibility study for laying a cable along the bottom of the Black Sea. Rolande Pryce, the World Bank Director for the South Caucasus, highlighted the comprehensive nature of this study, which will assess technical, economic, financial, and institutional aspects to ensure the viability of the project. Signed by the governments of Georgia, Azerbaijan, Romania, and Hungary in December 2022, this agreement signifies a collaborative effort to enhance energy connectivity between the region and Europe.

Crucially, the study is being spearheaded by the Italian energy consulting company CESI, indicating international cooperation and expertise in driving forward this transformative initiative. As Azerbaijan continues to play a leading role in advancing the Middle Corridor, such partnerships underscore the country's commitment to sustainable development and economic prosperity.

Azerbaijan's proactive stance towards renewable energy and its involvement in initiatives like the Middle Corridor highlight its emergence as a key player in the global energy landscape. By leveraging its strategic location and fostering international partnerships, Azerbaijan is poised to unlock new opportunities for sustainable economic growth and regional integration.