Azerbaijan's vision for energy transformation ahead of COP29 [COMMENTARY]

Leading up to COP29, the State Oil Company of Azerbaijan (SOCAR) is positioned to actively shape the global climate agenda. Committed to fostering collaboration among national and international oil companies, SOCAR intends to host significant events and panels aimed at advancing efforts in climate mitigation. Afgan Isayev, Vice President of SOCAR, highlighted the company’s strategic partnerships and ambitious projects aimed at ensuring a sustainable future for future generations. These endeavors include substantial investments in renewable energy such as solar and wind projects, alongside pioneering efforts in offshore wind energy for the production of green hydrogen. Looking forward to 2035, SOCAR envisions a transformative journey from a conventional oil and gas entity to a diversified energy leader, aligning its emissions profile with global industry standards to underscore its commitment to reducing carbon emissions. As SOCAR prepares to present its innovative initiatives at COP29, its dedication represents a pivotal moment in the global energy landscape.

Azerbaijani economist Parviz Heydarov said Azernews that not only SOCAR, but all of the world's leading energy companies have set themselves the goal of diversifying their activities by specific deadlines—some aiming for 2030, others for 2035.

"This entails shifting away from the reliance on traditional energy resources and the associated business models focused predominantly on their production and sale. Instead, the aim is to adopt diversified activity mechanisms to effectively meet the ever-increasing global energy demand. This strategy aims not only to prevent further damage to the deteriorating ecology but also to reduce dependence on foreign energy resources and other forms of external dependency. This is a significant and serious initiative, one that SOCAR- our oil company cannot overlook. Therefore, as you noted, considering the current global energy landscape and market dynamics, SOCAR must move in this direction if we are to remain competitive."

According to him, Azerbaijan places significant emphasis on utilizing alternative energy sources at the state level.

"Moreover, substantial investment agreements have been concluded with Middle Eastern countries in this sector, aiming to expand our utilization of alternative energy sources both to meet domestic energy demands and for international export. In this context, hosting COP29 in Azerbaijan and our nation's dedicated focus on this event reaffirm our commitment to alternative energy sources, despite our status as an oil and gas nation rich in traditional energy resources. Azerbaijan's plans aim to establish a prominent position among nations that prioritize alternative energy sources. This underscores our country's commitment to global climate conditions and the mitigation of climate degradation. Achieving these goals is challenging and demands considerable financial resources and the deployment of advanced technologies. Importantly, investment in these projects is crucial, a goal our country intends to achieve through its financial capabilities and with the assistance of foreign investors."

P. Haydarov noted that a portion of our traditional energy resources is exported to Europe and global markets.

"Oil extracted from the ACG (Azeri-Chirag-Guneshli) field via the Baku-Tbilisi-Ceyhan pipeline has been exported worldwide for several years, contributing significantly to our current level of development. Simultaneously, for the past four years, we have been exporting gas to Europe through the Southern Gas Corridor. Azerbaijani gas is purchased by eight countries, with expectations of increasing this number. We have committed to Europe to double our gas supply for these exports, underscoring the need to expand our use of alternative energy sources to ensure we can export gas while meeting domestic demand."

"Azerbaijan has set ambitious goals to be recognized not only as a natural gas exporter but also as a provider of green energy in the future. In summary, I believe SOCAR will successfully undertake many of the tasks ahead during this process, navigating the challenges that lie ahead. However, achieving these goals necessitates expanding relationships with other energy and investment firms and increasing investments to consistently and rapidly advance the use of new technologies and alternative energy sources across the country," Heydarov concluded.