BAKU, Azerbaijan, October 3. Azerbaijan needs to boost investments in energy efficiency and demand management in order to boost the transition to a greener economy, the World Bank (WB) said, Trend reports via WB’s “Azerbaijan: towards green growth” publication.
Investments in resource efficiency, such as energy demand management and energy efficiency, the sustainable intensification of agriculture, improved land use and urban planning, as well as water and waste management are green measures, that bring immediate benefits, the WB said.
“On the other hand, carbon pricing, fuel and electricity subsidy reforms are designed to shift consumer/investor choices in favor of green and renewable options that derive fiscal merits. These measures take time to work, and their net benefits are limited by other costs,” the report added.
According to the WB, combating erosion and reversing the degradation of forests and natural ecosystems may not yield large short-term benefits, but they are necessary to maintain a sustainable green economy in the long term, and there may be benefits from distribution if local communities receive jobs and income from reconstruction programs.
“Future consultations with stakeholders on country-specific aspects of green growth, as well as targeted research in cross-cutting topics and deep dives into sectors, will inform the development of a prioritization matrix for Azerbaijan. While deeper analyses are forthcoming, the highlighted areas and priorities below, if implemented, can kick-start greener growth while also addressing country-specific development challenges,” the Bank added.
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