Azerbaijan's non-oil industry expands 1.5-fold between 2021 and 2025

Qabil Ashirov

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Azerbaijan's non-oil industry grew 1.5-fold between 2021 and 2025, Deputy Economy Minister Samad Bashirli said.

Bashirli made the remarks on Wednesday at the 9th Sustainable Development Goals (SDGs) Dialogue in Baku.

He noted that while hosting COP29, Azerbaijan updated its climate commitments and nationally determined contributions (NDCs), setting more ambitious targets.

According to the deputy minister, continued economic growth, the expansion of the non-oil sector and rising exports are increasing the country's energy demand. The 1.5-fold expansion of non-oil industry between 2021 and 2025 has made it increasingly important to expand energy supplies while reducing carbon emissions and protecting the environment.

“Economic growth continues, the non-oil industry is expanding, and exports are increasing. Naturally, this also leads to higher energy demand. Therefore, expanding the use of alternative and renewable energy sources is particularly important,” Bashirli said.

He emphasized that Azerbaijan has launched several regional energy projects to meet growing demand and accelerate its transition to green energy. Green energy corridors connecting the Caspian Sea region with the Black Sea, Europe and Central Asia are particularly important in this regard.

Bashirli said Azerbaijan continues to attract investment in renewable energy projects, adding that the total capacity covered by agreements signed in this sector has exceeded 8 gigawatts (GW).

He also highlighted various support mechanisms designed to encourage investment in green energy. These include investment promotion incentives for renewable energy projects, as well as tax and customs concessions.

The deputy minister added that the Business Development Fund has begun promoting green lending. These mechanisms are intended to encourage companies to invest in environmentally sustainable projects and support the development of a green economy.

Bashirli stressed that industrial decarbonization involves more than replacing conventional energy sources with renewables. Improving production efficiency, using resources more economically and adopting environmentally friendly technologies are also essential.

He noted that technologies enabling resource reuse and production optimization are being introduced in this area. With support from the Center for Analysis and Coordination of the Fourth Industrial Revolution, such initiatives are being implemented at several facilities, including Bahar and SOCAR Carbamide.

Bashirli reaffirmed Azerbaijan's commitment to accelerating its green energy transition, reducing industrial emissions and aligning economic development with environmental sustainability principles.