Azerbaijan implements incentives and guarantees to attract investment, says deputy minister

Azerbaijan is committed to the goals of sustainable development and recognizes the decisive role of public-private partnerships (PPPs) in the advancement of environmental, social, and corporate governance (ESG), Azernews reports.

Deputy Economy Minister Sahib Mammadov stated this during his speech at the Environmental, Social, and Corporate Governance (ESG) Summit on "Public-Private Partnership for Sustainable Development."

"In December 2022, Azerbaijan took a significant step forward by adopting the law on public-private partnerships to ensure strong collaboration between sectors. In line with these principles, we have implemented clear incentives and safeguards to attract investments and stimulate economic growth, while ensuring transparency, efficiency, and fairness. This aligns with our commitment to upholding the rule of law, promoting free competition, and ensuring that our partnerships are not only economically beneficial but also ethically and socially responsible. I am pleased to announce one of the initiatives we have implemented under the public-private partnership mechanism - desalination of seawater for drinking water production," he said.

Mammadov noted that the environment is an integral part of the global supply chain, as more than half of the world's total GDP depends on nature, particularly in sectors such as construction, agriculture, and forestry:

"I would like to emphasize that Azerbaijan supports various initiatives, from transitioning to a circular economy to the adoption of 'clean technologies' and the expansion of the use of renewable energy sources."

Vusal Shikhaliyev, Sector Head of the Department of Economic Policy and Industrial Affairs at the Presidential Administration and Secretary of the Commission for Business Environment and International Ratings, mentioned that this year, the Azerbaijani government is striving to offer discounts and privileges in environmental, social, and governance responsibilities (ESG) to the public and business representatives.

He noted that the application of ESG elements is very important on the eve of the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29): "We are working to create conditions for active participation of all parties in ESG. Improving the business environment in terms of promoting ESG elements constitutes a key priority goal."

Vladanka Andreyeva, the UN Resident Coordinator in Azerbaijan, highlighted during her speech at the summit that the UN is committed to supporting Azerbaijan's measures to combat climate change even after COP29 is held in November.

"Our climate discussions focus on strengthening national dialogue and action on climate change and just transitions. Today's event marks our 15th climate dialogue. As the UN family, we are committed to supporting the COP29 presidency and engaging with all stakeholders to ensure that climate action not only continues to accelerate but also continues beyond COP29," she said.

Andreyeva emphasized that the purpose of today's event is to promote dialogue and cooperation so that governments and private organizations can share strategies to find better solutions.