State support unlocks new opportunities for Azerbaijan's Green Economy: COP29 President-Designate

State support in Azerbaijan is unlocking new opportunities for developing the "green economy," according to Mukhtar Babayev, the designated president of COP29, Azernews reports.

Speaking at a conference on "The Role of Small and Medium Business in the Green Economy," organized by the Small and Medium Business Development Agency (SMBD) with the backing of the Ministries of Economy, Ecology, and Natural Resources, Babayev highlighted the significance of state measures in promoting "green energy."

"The steps taken by the state in the field of 'green energy' provide a long-term vision for the private sector and investors and stimulate the development of new projects," Babayev stated.

He emphasized the need to increase environmental projects in public and private sectors and encourage small and medium-sized enterprises (SMEs) to build sustainable infrastructure and adopt "green technologies." This, he noted, would foster both economic growth and environmental efficiency.

"To overcome the financial challenges faced by SMEs during this transition, it is essential to expand their access to preferential financial resources. Through financial instruments related to Environmental, Social, and Corporate Governance (ESG), SMEs should be facilitated in investing in ecological and sustainable projects," Babayev explained.

The minister also discussed the importance of integrating green and sustainable development concepts and social responsibility as core management principles for all companies. Banks and financial organizations should also consider environmental and climate factors alongside economic criteria when making decisions.

"Budget labeling is an approach used in forming state budgets in international practice. It allows for aligning state expenditures with environmental goals and ensuring more efficient and sustainable use of resources. It has become necessary to consider environmental indicators when allocating financial resources," Babayev added, stressing the importance of supporting ecologically sustainable projects.