November 2008

Country Profile Azerbaijan

Azerbaijan is one of the states that make up South Caucasia (the others being Georgia and Armenia). With its semi-arid to arid climate, this part of Central Asia is expected to suffer food and water shortages unless climate change adaptation measures are adopted. Increasing droughts and flooding are already evident. A rise in sea levels would have a direct impact on low-lying areas near the Caspian Sea.

Azerbaijan ratified the Kyoto Protocol in September 2000. The Designated National Authority (DNA) – the Climate Change and Ozone Centre – was made an arm of the Ministry of Ecology and Natural Resources in 2005. The ministry website has an English-language section, although most of the information it contains has not yet been translated.

Backed by the United Nations Development Programme (UNDP), a capacity building project was launched in August 2006 to promote use of the CDM in Azerbaijan. The ultimate aim was to overcome barriers that hinder progress with the CDM: the DNA is not yet fully developed and neither the legislative framework nor the expertise needed to recognise and implement potential CDM projects are readily available.

Ten national sustainability criteria have been introduced for CDM projects destined for implementation in Azerbaijan. Projects must promise emission reductions of at least 15,000 tCO2, and they must comply with the country’s overall macro-economic targets and be sustainable.

There are currently three projects in the validation phase (as of August 2008). Two focus on fuel switch and one involves hydropower. Azerbaijan also has vast oil and gas reserves, both harbouring potential for CDM projects. For example, associated gas can be captured during oil extraction. Use of landfill gas in Sumgait is one of the two Azerbaijani fuel switch projects awaiting validation. A number of other projects are planned in the afforestation and biogas use sectors.

Germany plays an active role in Azerbaijan’s climate change mitigation efforts. In 2007, the two countries signed a Memorandum of Understanding designed to simplify joint climate change projects. Cooperation opportunities arise in the use of associated gas capture in oil extraction and in modernisation of Azerbaijan’s energy industry.

Further selected information:

Ministry of Ecology and Natural Resources of the Republic of Azerbaijan
EU Country Report Azerbaijan
International Energy Agency (IEA): Information on Azerbaijan
United Nations Development Programme (UNDP) in Azerbaijan
United Nations Development Programme (UNDP) on Energy and Climate Change in Europe and the CIS states
Press Release: Germany and Azerbaijan Plan Cooperation in Climate Protection