Azerbaiyán

Brief description

Azerbaijan is exposed to macroeconomic shocks linked to fluctuations in global energy prices as its economy is highly dependent on fossil fuels. The Joint Programme (JP) focused on Integrated National Financing Framework (INFF) will be the first of its kind for Azerbaijan to manage and mobilize financing towards sustainable development, ensuring no one is left behind. The impact of the Azerbaijan Joint Programme will contribute to accelerate investments in green energy, support the creation of innovative businesses, including sustainable agriculture, while reducing economic inequalities and mitigating potential environmental risks associated with the extractive industry.

Approach

The government of Azerbaijan is committed to design and implement critical reforms to reduce its dependence on exports of fuel and mineral commodities, to mitigate potential effects associated with an extractive-based economy, such as the growth of inequality and climate change risks, and to shift its economic model from oil-based to a green growth economy. The Government is looking for strategic cooperation with the private sector and international community to co-design holistic policies and plans to scale-up SDG-aligned programmes, unlock green investments and to modernise the country's economic model.