Publication:
Azerbaijan : Towards Green Growth - Issues Note

Loading...
Thumbnail Image
Files in English
English PDF (3.95 MB)
3,155 downloads
English PDF (445.28 KB)
100 downloads
English Text (404.31 KB)
34 downloads
Other Files
Azerbaijani PDF (4.84 MB)
467 downloads
Azerbaijani PDF (461.95 KB)
64 downloads
Date
2022-09
ISSN
Published
2022-09
Author(s)
Editor(s)
Abstract
The welfare and economic growth of Azerbaijan’s development trajectory based on fossil fuel extraction has come at the expense of the environment, other non-oil industries, and human capital growth. Due to its lack of economic diversification, the country is highly vulnerable to transition risks, volatility of fossil fuel markets, and climate change. This note, produced in support of Azerbaijan’s ambition for green growth, identifies how increased climate action and greening of a number of sectors have the potential to spur diversification of Azerbaijan’s economy, contribute to addressing sector- and country-specific environmental challenges and goals, reduce greenhouse (GHG) emissions, address the identified physical and transitional climate risks and vulnerabilities, and strengthen long-term climate resilience of the country. Investments in resource efficiency, sustainable intensification of agriculture, better land use and urban planning, water and waste management, switching to cost-effective renewable energy, and research on low-carbon hydrogen and Caspian maritime space are the green measures that can have an immediate positive impact on Azerbaijan’s economy and the environment. The first stage in identifying areas for wealth development will be a comprehensive green growth and asset diversification strategy, informed by detailed sectoral analysis and supported by capable institutions. Once mobilized by public sector interventions through policies to enable and incentivize green investments and green finance instruments, private enterprises will take the lead in relocating capital to green supply chains, creating jobs and building human capital while increasing the focus on innovation and efficiency. Cutting system leak emissions in the oil and gas industry could contribute significantly to reducing GHG emissions at lower costs. Enhancing the environmental performance of enterprises will be made possible by promoting eco-efficient policies and investments in cleaner production and technologies. Beginning now and leveraging this transition to green growth and diversification through the use of public resources and revenues from fossil fuel exports, Azerbaijan can mitigate certain short-term difficulties and promote long-term sustainable growth to ensuring a cleaner environment and economic prosperity.
Link to Data Set
Citation
World Bank. 2022. Azerbaijan : Towards Green Growth - Issues Note. © World Bank. http://hdl.handle.net/10986/38073 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    A Toolkit of Policy Options to Support Inclusive Green Growth
    (World Bank, Washington, DC, 2012) African Development Bank; Organisation for Economic Co-operation and Development; United Nations; World Bank
    In 2012, the Mexican Presidency of the G20 introduced inclusive green growth as a cross-cutting priority on the G20 development agenda. The second meeting of the G20 Development Working Group (DWG), hosted by the Government of the Republic of Korea, took place in Seoul the 19th and 20th of March 2012. As agreed during the first DWG meeting, this second meeting focused on the priorities for their presidency in the first half of 2012: infrastructure, food security and inclusive green growth (IGG). At its Seoul meeting, the DWG also agreed that IGG co-facilitators and relevant international organizations (IOs) should work together in 2012 to develop a nonprescriptive good practices guide/toolkit on enabling national policy frameworks for inclusive green growth to support countries who voluntarily wish to design and implement affordable and inclusive green growth policies, with the aim of achieving sustainable development and poverty alleviation. The toolkit is organized as follows. First, the necessity of applying the different tools in the context of a broad inclusive green growth strategy is stressed, and a harmonized framework combining approaches and tools identified by all four IOs is set forth. Second, the document offers an overview of key tools that can be mobilized to implement an inclusive green growth strategy. Quick technical descriptions of these tools are offered along with suggested sources for further details. Finally, capacity building and knowledge sharing initiatives are presented, with the Green Growth Knowledge Platform (GGKP) highlighted as a powerful collaborative tool to advance policies for inclusive green economies.
  • Publication
    Green Growth : Lessons from Growth Theory
    (World Bank, Washington, DC, 2012-10-01) Withagen, Cees; Smulders, Sjak
    This paper reviews dynamic general equilibrium models in order to collect insights on the interaction between economic growth and environmental issues. The authors discuss the Ramsey model and extend it for natural resource inputs and pollution, as well as for endogenous technical change. Green growth becomes within reach if there is good substitution, a clean backstop technology, a small share of natural resources in gross domestic product, and/or green directed technical change.
  • Publication
    Note on Green Growth for Bhutan
    (World Bank, Washington, DC, 2014-07-31) Narain, Urvashi; Toman, Michael; Jiang, Zhiyun
    Bhutan has recently made significant progress in sustaining economic growth and reducing poverty. Bhutan also has valuable deposits of primary materials including dolomite, lime stone, gypsum, quartzite, stone, and marble, which are useful for fabrication of other materials. Thus, a significant part of Bhutan's current and prospective economic gains come from use of natural resources called, green sectors. The basic message in this note is that Bhutan starts from a solid base in terms of green growth, with additional opportunities for meeting its development goals and overcoming the above mentioned challenges on the basis of its natural resource endowment. However, realizing those opportunities and meeting those challenges will require focusing on the economic contribution from sustainable use of those natural resources, in addition to conservation of the environment. It will also require complementary measures, using the economic surplus (or as economists refer to it, rent) from sustainable natural resource use to help diversify economic activity and address institutional and other constraints. A more comprehensive view of green growth emphasizes sustainable use of natural capital, along with managing environmental risks cost-effectively and in an institutionally sound manner to limit risks to human health and of irreversible degradation of the natural environment. In this context, green growth needs to balance conservation with sustainable economic use of all resources to meet the needs of the present, and maintain opportunities for the future. The note touches upon issues of inclusion where possible but not in a systematic and comprehensive manner. The purpose of the note is to provide food for thought in ongoing discussion of growth strategies for Bhutan, and how green growth ideas may contribute to that discussion.
  • Publication
    Turkey Green Growth Policy Paper : Towards a Greener Economy
    (Washington, DC, 2013-04) World Bank
    The report is organized in seven chapters. Following the introductory chapter, chapter two sets the stage by reviewing the structure of Turkey's economy and its performance, as well as the challenges and opportunities provided by Turkey's current growth path from implementing a 'green agenda' linked to achieving standards set by European Union (EU) Directives and Organization for Economic Cooperation and Development (OECD) principles; this is followed by a review of where Turkey stands compared to developed and emerging economies, in terms of what is broadly understood as a comprehensive approach to green growth. Chapter three uses a narrower, more operational, definition of green growth for the purposes of the analysis undertaken in the policy note. Chapter four presents an assessment of the seven strategic sectors selected for a more focused analysis. It also highlights the greening potential within these sectors. Chapter five reviews the range of policy instruments available in the European Union (EU) and other emerging international experiences, as well as the relevance of these policy options to the objectives of the policy note. Chapter six presents the economy-wide framework and the results of the pilot economic 'impact analysis' of two types of greening scenarios: an urban scenario (linked to production and consumption by firms and households) and a rural scenario focused on agriculture. Finally, chapter seven concludes with an initial set of recommendations.
  • Publication
    Trade in a ‘Green Growth’ Development Strategy : Global Scale Issues and Challenges
    (2012-10) de Melo, Jaime
    This paper surveys the state of knowledge about the trade-related environmental consequences of a country's development strategy along three channels: (i) direct trade-environment linkages (overexploitation of natural resources and trade-related transport costs); (ii) 'virtual trade' in emissions resulting from production activities; and (iii) the product mix attributes of a 'green-growth' strategy (environmentally preferable products and goods for environmental management). Trade exacerbates over-exploitation of natural resources in weak institutional environments, but there is little evidence that differences in environmental policies across countries has led to significant 'pollution havens.' Trade policies to 'level the playing field' would be ineffective and result in destructive conflicts in the World Trade Organization. Lack of progress at the Doha Round suggests the need to modify the current system of global policy making.

Users also downloaded

Showing related downloaded files

  • Publication
    Global Economic Prospects, January 2024
    (Washington, DC: World Bank, 2024-01-09) World Bank
    Note: Chart 1.2.B has been updated on January 18, 2024. Chart 2.2.3 B has been updated on January 14, 2024. Global growth is expected to slow further this year, reflecting the lagged and ongoing effects of tight monetary policy to rein in inflation, restrictive credit conditions, and anemic global trade and investment. Downside risks include an escalation of the recent conflict in the Middle East, financial stress, persistent inflation, weaker-than-expected activity in China, trade fragmentation, and climate-related disasters. Against this backdrop, policy makers face enormous challenges. In emerging market and developing economies (EMDEs), commodity exporters face the enduring challenges posed by fiscal policy procyclicality and volatility, which highlight the need for robust fiscal frameworks. Across EMDEs, previous episodes of investment growth acceleration underscore the critical importance of macroeconomic and structural policies and an enabling institutional environment in bolstering investment and long-term growth. At the global level, cooperation needs to be strengthened to provide debt relief, facilitate trade integration, tackle climate change, and alleviate food insecurity.
  • Publication
    Bangladesh Country Climate and Development Report
    (World Bank Group, Washington, DC, 2022-10) World Bank Group
    The World Bank Group’s Country Climate and Development Reports (CCDRs) are new core diagnostic reports that integrate climate change and development considerations. They will help countries prioritize the most impactful actions that can reduce greenhouse gas (GHG) emissions and boost adaptation, while delivering on broader development goals. This CCDR identifies near-term policy and investment priorities that will support Bangladesh to continue progress in building resilience to the effects of climate change. Section 1 describes Bangladesh’s vulnerability to the effects of climate change and outlines estimates of the cost of mitigation and adaptation investments through 2030. Section 2 lays out the Government of Bangladesh’s existing climate commitments and plans, and evaluates the institutional capacities required to meet them. Section 3 highlights priority sector-level interventions to build climate resilience while meeting development goals. Section 4 presents potential synergies between decarbonization and development. Section 5 discusses the macroeconomic and distributional impacts of climate scenarios and identifies priority actions to support adaptation and growth. The CCDR provides additional analysis to prioritize actions to accelerate climate-resilient development in line with Bangladesh’s goals.
  • Publication
    Global Economic Prospects, January 2025
    (Washington, DC: World Bank, 2025-01-16) World Bank
    Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.
  • Publication
    Business Ready 2024
    (Washington, DC: World Bank, 2024-10-03) World Bank
    Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.
  • Publication
    South Asia Development Update, October 2024: Women, Jobs, and Growth
    (Washington, DC: World Bank, 2024-10-10) World Bank
    South Asia’s growth is on track to exceed earlier expectations, in a broad-based upturn. The region is expected to remain the fastest-growing among emerging market and developing economies (EMDEs). Several risks could upend this generally promising outlook, including extreme weather events, social unrest, and policy missteps, such as reform delays. But South Asian countries also have considerable untapped potential that could help them further boost productivity growth and employment and adapt to climate change. In particular, with about two-thirds of the region’s working-age women out of the labor force, raising female employment rates to those of men could increase per capita income by as much as one-half. Measures to accelerate job creation, remove obstacles to women working, and equalize gender rights would be more effective if combined with a shift toward social norms that looked more favorably on working women. Also, most South Asian countries rank among the EMDEs least open to global trade and investment. Greater openness could boost women’s employment, spur the growth of firms, and allow the region to take better advantage of the reshaping of global supply chains and trade. Reducing the cost of conducting business could help the region better harness large-scale remittance inflows.