Energy Transition and Sustainability Working Group

The Energy Transition and Sustainability Working Group of AHK Azerbaijan hosted the event titled “2025 Annual Summary of Working Group Activities: ESG Reporting Insights”, bringing together representatives of government institutions, the private sector, and field experts to reflect on key developments in ESG reporting and sustainability practices throughout the year.

The event opened with welcoming remarks by representatives of AHK Azerbaijan and the leadership of the Working Group, who greeted participants and underlined the growing importance of ESG reporting for businesses in Azerbaijan, as well as the role of collaborative platforms in advancing sustainability and transparency.

The session provided an overview of the activities carried out by the Working Group during 2025, highlighting major milestones, initiatives, and achievements. Particular attention was given to emerging trends in ESG reporting, challenges faced by companies in implementation, and the outlook for future developments in this area.

Within the program, video presentations on ESG reporting prepared by AZAL and other participating organizations were showcased, offering practical insights and real-life examples of ESG approaches and reporting practices. In addition, the results of the survey “AHK Members’ ESG Reporting Experience and Plans” were presented and discussed, sparking an exchange of views on current practices, gaps, and future intentions of member companies regarding ESG reporting.

During the event, participants who made valuable contributions to the activities of the Energy Transition and Sustainability Working Group throughout 2025 were recognized with special certificates, acknowledging their active engagement and support.

The event concluded with an interactive discussion and Q&A session, during which participants shared their perspectives on ESG reporting, lessons learned over the past year, and expectations for the Working Group’s future initiatives in supporting sustainable development and responsible business practices in Azerbaijan.

The Energy Transition and Sustainability Working Group of AHK Azerbaijan hosted a session titled “Green Finance Models in State-Owned Enterprises (SOEs): Proven Business Cases.” 

The event opened with welcoming remarks by Nargis Wieck, Executive Director of AHK Azerbaijan who greeted participants and followed by Gurban Karimbayli, Chair of the Working Group, highlighted the importance of advancing sustainable financing practices in Azerbaijan. 

Under the moderation of Gunay Asgarova, the session featured an interactive discussion on “Proven Green Finance Models in Azerbaijan – Insights from Businesses and Financial Institutions,” where speakers shared practical experiences and perspectives on sustainable finance. 

During the panel discussions, speakers addressed key issues related to the transformation of the financial sector towards sustainable and green finance. The dialogue covered the role of the Central Bank’s Green Taxonomy in channeling capital into energy transition and sustainable projects, as well as the main challenges and risks financial institutions face in implementing green finance frameworks. Speakers also reflected on the most effective models for financing state-owned enterprises’ green projects, highlighting the balance between public budget guarantees and blended finance with international institutions. Further discussions focused on the institutional, financial, and regulatory barriers hindering green investment. 

Representatives of major state-owned enterprises, including Baku Metro and Azerbaijan Railways, shared insights on ESG initiatives, access to international green finance markets, integration of sustainability into corporate strategy, and the economic, financial, and ESG-related benefits of electrification projects. Additionally, the role of international financial institutions, particularly ADB, in supporting state-owned enterprises with green financing instruments and acting as strategic investors was emphasized. 

The event concluded with a Q&A session where member companies shared insights on green financing, implementation challenges, and the need for strong institutional support. 

On June 18, 2025, the Energy Transition and Sustainability Working Group was officially relaunched under the joint coordination of AZAL – Azerbaijan Airlines, Uniper Global Commodities SE, and AHK Azerbaijan. The session brought together more than 35 participants from over 30 companies, reaffirming the group’s position as a key platform for cross-sector dialogue and practical cooperation on climate and energy matters in Azerbaijan.

The meeting opened with remarks by Dr Michael Hilmer (Uniper), Fidan Farzaliyeva (AZAL), Rashad Huseynli, and Gurban Karimbayli (AZAL), who emphasized Azerbaijan’s strategic role in the global energy transition and the importance of inclusive stakeholder engagement. AZAL presented ambitious targets, including a 40% emissions reduction and a 35% share of green transport in its operations.

The group discussed the necessity of structured dialogue formats and announced the launch of topic-specific sessions addressing legal, financial, and technological challenges. Key themes included green finance, the role of SMEs in ESG implementation, and the formation of voluntary competence centers to share best practices. The session concluded with a strong call for collaboration, innovation, and long-term project tracks to accelerate the decarbonization of Azerbaijan’s energy and transport sectors.

The AHK Azerbaijan organised the Energy Transition Working Group meeting on October 24, 2024, focusing on "Financing the Energy Transition." This meeting was part of the series themed "Innovate, Collaborate, Transform - Expectations for COP29," which aimes to prepare for the upcoming COP29 in Azerbaijan. Participants engaged in discussions about innovative financing solutions critical for supporting the transition to sustainable energy systems.

Opening the meeting, Rashad Huseynli, Vice Chairperson of the Working Group, welcomed the participants and introduced Vitaly Yakovlev, Head of the Infrastructure Sector, Managing Partner of KPMG Azerbaijan, and Deal Advisory Partner of KPMG Caucasus and Central Asia (CCA), and Seymur Niftaliyev, Director of KPMG Law.

In his speech, Mr Yakovlev highlighted issues related to financing the energy transition, renewable energy, and energy security. He emphasised the importance of funding green energy initiatives to mitigate potential climate risks, which is one of the key objectives of the COP29 World Climate Summit. Furthermore, Mr Yakovlev discussed matters concerning greenwashing climate change, decarbonisation, and the environment for green energy investors in our country.

Subsequently, Seymur Niftaliyev, in his speech, explained to the participants the importance of developing green infrastructure in Azerbaijan. Mr Niftaliyev discussed the potential for clean energy throughout the country, the role of Public-Private Partnerships (PPP) in supporting the development of enhanced green infrastructure, which requires substantial investment and the concept of Green Loans, which allocate funding for sustainable projects.

The meeting continued with a round of introductions and a session to gather ideas from the participants.

On 29 April 2022, the Energy Transition Working Group of AHK Azerbaijan launched its activities with a kick-off meeting. The meeting was attended by more than 20 company representatives.

Opening the meeting, Tobias Baumann welcomed the participants, introduced Dr Michael Hilmer, Chairperson of the Energy Transition Working Group and delved into the energy prospects for Azerbaijan and their implications for regional energy security. Dr Michael Hilmer, in his speech, talked about the local alternative and renewable energy sources, expanded on the investment climate in the energy sector and went through the crucial topics pointed out by the member companies in the brief survey on the establishment of the Energy Transition Working Group.

The meeting continued with a round of introductions and a session on gathering ideas from the participants, which Dr Michael Hilmer moderated. During the meeting, it was agreed that the Energy Transition Working Group would focus on addressing key challenges in the regulation of the local energy market, renewable and alternative energy generation capacities, tendering process and funding opportunities.