Global climate change, dwindling natural resources, and increasing demand dictate the development of the "green economy."

This was stated by Minister of Economy Mikayil Jabbarov at the conference on "The Role of Small and Medium Business in the Green Economy," held in Baku with the support of the Ministries of Economy, Ecology and Natural Resources, and organized by the Small and Medium Business Development Agency.

"This, in turn, has become an important factor for the sustainable development of every country. It is no coincidence that one of the National Priorities defined by President Ilham Aliyev is 'Clean Environment and Green Growth.' In this regard, relevant measures are being implemented within the framework of the '2022-2026 Socio-Economic Development Strategy,'” he said.

"In the Year of Solidarity for a Green World and on the eve of COP29, important events of this kind are being held in our country. The current conference is a continuation of this and addresses relevant issues. In general, important tasks lie ahead, such as increasing the application of environmentally friendly technologies and green production, recycling, and promoting the restoration of polluted areas. In short, we must achieve economic progress and increase social welfare while protecting the environment. In this context, the role of the private sector, especially small and medium-sized businesses, is crucial. The main goal of today's conference is to promote the green SME concept in the transition to a green economy," the minister added.

At the same time, the minister noted that the importance and role of small and medium-sized businesses (SMEs) in the socio-economic development of Azerbaijan are increasing significantly.

"SMEs contribute to the growth of gross domestic product (GDP), job creation, employment, and the economic reintegration of liberated territories. In the new era, they must play a role in developing the 'green economy,' which has become a necessary trend," he said.

"Currently, more than 99% of businesses in our country are SMEs. Ensuring green growth and transitioning to a green economy largely depends on the green transformation of SMEs. Many SMEs operate in sectors such as construction, transportation, industry, energy, and agriculture, which have a higher share in greenhouse gas emissions. Emphasizing efficient technologies and practices in energy and raw materials enhances their competitiveness," the minister added.

"World experience shows that SMEs are often more advanced in clean technologies and business models. Their flexibility allows them to quickly adapt to new trends and innovations. SMEs can respond to market changes and consumer preferences, which is crucial in the rapidly evolving green economy. Small and medium entrepreneurship plays a special role in reducing dependence on traditional industries, developing green solutions, and strengthening economic diversification," said M. Jabbarov.

To enable small and medium-sized businesses in Azerbaijan to contribute to the green economy, ensuring energy efficiency is essential, added Mikayil Jabbarov.

"It is possible to achieve energy efficiency through the application of energy-saving technologies and the use of renewable energy sources," he said.

"The development of human resources and the improvement of personnel are also important. Innovations can be implemented by personnel with modern knowledge and skills.

Waste management is also crucial. Recycling waste, reducing waste volume, and using environmentally friendly materials are important aspects.

The development and production of environmentally friendly products and services should also be mentioned.

Social responsibility is another key requirement. Constantly considering environmental factors in business activities, participating in social projects, and supporting initiatives in this field should be among the main business principles of modern entrepreneurs," the minister added.

"SMEs can green their business by focusing on these issues. Green businesses play an important role in achieving sustainable production and increasing resources. Green businesses and ecologically clean companies are among the fastest-growing industries in the world," M. Jabbarov emphasized.

The minister also noted that the development of the green economy in Azerbaijan and the implementation of green projects aim to protect environmental safety while ensuring economic efficiency.

"A favorable regulatory framework for green business is being developed, and several support tools are being applied," he said.

"In recent years, tax policy has included legislative initiatives to support the green economy. These measures include tax concessions for environmental protection, restrictions on the import of old cars, disposal of vehicles, stimulation of electric and hybrid car imports, and support for alternative energy. This reflects the country's agenda with green energy.

In the medium term, support for green energy in tax policy will continue. Work is underway to determine the scope of ecological and green taxes, including assessing the possibility of a carbon tax or similar measures to reduce carbon emissions," the minister added.

Industrial parks, particularly Balakhani Industrial Park, which specializes in waste recycling, are among the measures supporting the green economy. The park aims to expand the production of competitive industrial products using high technologies, develop the non-oil sector, increase employment, and improve the ecological situation in Baku and surrounding areas. By leveraging these opportunities, entrepreneurs can establish innovative production areas in line with advanced challenges.

Green projects by entrepreneurs are financed by the Entrepreneurship Development Fund. To date, green projects benefiting from the Fund's preferential loans cover areas such as recycling, transitioning to alternative energy sources, and creating electric vehicle charging stations.

Green projects are also supported by KOBIA through grants, startup certificates, market research, training, access to exhibitions, and financial opportunities.

I encourage SMEs to be more active and take advantage of the opportunities created by innovative initiatives and state support. Green energy projects are of regional and global importance for economic, ecological, and energy security," M. Jabbarov emphasized.