Azerbaijan has strong potential to become a green leader in the region, says climate finance expert
London, May 20, AZERTAC
Niki Hutson, COP29 speaker and sustainability expert in ESG (Environmental, Social and Governance) and climate finance, shared her insights with AZERTAC on the outcomes of COP29, Azerbaijan’s role as host, and the country’s potential to lead in green energy and sustainable finance.
- What were your key takeaways from COP29?
COP29 marked a shift from talk to action. We saw tangible progress—starting with the finalized framework under Article 6.4 of the Paris Agreement, which lays the groundwork for a high-integrity global carbon market. On day one, there was movement on the New Collective Quantified Goal (NCQG), setting a new climate finance target that triples the 2020 commitment. The ambition to mobilize $1.3 trillion annually by 2030—including public and private sources—was a wake-up call to scale blended finance and better support developing nations.
Importantly, the Loss and Damage Fund, created at COP27, became fully operational—vital for countries facing climate-related disasters.
We also saw greater attention on climate adaptation, insurance solutions, and a generally more action-oriented tone. For once, the promises didn’t feel empty. That momentum will be crucial heading into COP30.
Another standout was the spirit of collaboration. For the first time in a while, there was a real sense of community across sectors—policymakers, corporates, financiers, and civil society. That collective energy is something we should harness in the lead-up to Climate Action Week and COP30.
-Did COP29 meet your expectations on climate finance commitments?
Given my background in climate science, I always hope for more ambition. But since working in the corporate space, I understand the political realities. Considering that, COP29 made somewhat meaningful strides—especially compared to previous years.
But my main concern remains the heavy reliance on private finance, which risks burdening developing countries with debt. That’s why blended finance is essential—de-risking private investment with public backing to ensure equitable solutions.
What impressed me most, however, was how quickly conversations turned into coordinated action. I joined several high-impact finance roundtables during week one, and we’re already tracking next steps for June. That’s real progress.
But let’s be realistic: we can’t sit back and wait for policy to catch up. Delays —like with Europe’s CSRD and CSDDD, for instance—have already sapped momentum. Instead, we need proactive leadership from industries, trade bodies/associations, and investors. COP29 did a better job of convening those voices, and I hope that continues.
-What opportunities exist for Azerbaijan to lead in sustainable finance or green energy in the Caspian region?
Azerbaijan's legacy in oil and gas makes it an ideal candidate to lead a just energy transition. It has the infrastructure, expertise, and regional influence to pivot toward clean energy in a big way. The country’s solar and wind potential is significant, particularly in places like Nakhchivan and the Caspian Sea. With the right investments, these could become major drivers of regional energy exports.
There’s also room for international collaboration—on electricity grids, hydrogen projects, and climate finance—with countries like Türkiye, the UAE, and those in Asia-Pacific. Azerbaijan has diplomatic and trade channels already in place; now it’s about aligning them with transition goals.
Financially, Azerbaijan has a chance to become a sustainable finance hub in the South Caucasus. That means introducing ESG standards and working with those that kickstarted sustainable finance long before regulators, for guidance such as the LMA and ICMa, attracting green capital, and supporting innovation—particularly through digital tools like AI.
Hosting COP29 put Azerbaijan on the global climate map. To stay there, the country must now translate ambition into action. That starts with creating a transparent, inclusive roadmap—something that manages expectations while building trust.
Look at Denmark - a standout example of a country that was once heavily dependent on oil and gas but has successfully charted a clear, credible path toward decarbonization.
Look at Ørsted—a former fossil fuel company that’s now 100% renewable. Azerbaijani companies can follow a similar path, with the help of local banks, international partners, and regulatory guidance.
Success will require humility, collaboration, and a willingness to learn. If Azerbaijan leans into that, it has a real shot at becoming a green leader in the region.
-How do you assess Azerbaijan’s performance as COP29 host?
Hosting a COP is like staging the Olympics—it’s a monumental effort. But the real test is in the legacy it leaves behind.
From an operational standpoint, Azerbaijan delivered a well-organized and inclusive event. The Blue Zone layout made navigating sessions seamless, which isn’t always the case. Security was tight, logistics smooth, and the overall atmosphere felt both welcoming and safe.
I also had the opportunity to connect with local professionals and explore the country beyond the summit. That cultural exposure matters—it reminds us why these talks are about real people, not just policies.
Now the focus should shift to what happens next. Hosting COP should be the beginning of a journey, not the end. I hope Azerbaijan uses this moment to drive long-term climate action, especially through infrastructure, energy policy, and sustainability initiatives. With the pride and hospitality I witnessed, I’m optimistic they will.
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