Azerbaijan Targets Green Energy and Economic Diversification in Baku Forum

The Government of Azerbaijan is accelerating a national energy transition and economic diversification strategy to reduce its reliance on oil revenues. During the 2nd Azerbaijan International Investment Forum in Baku, officials announced a target to limit oil-dependent state budget revenues to 30% by 2030. Finance Minister Sahil Babayev reported that the non-oil economy already accounts for more than 70% of the national GDP, with nominal GDP growth exceeding 6% between 2021 and 2025.

To support this shift, the government is allocating $3 billion toward diversification in agriculture, industry, tourism, and digitalization. Regional development remains a priority, with $25 billion invested over the last six years in the Karabakh and East Zangezur regions to build housing and infrastructure for returning displaced persons. An additional 16 billion manat ($9.4 billion) has been earmarked for infrastructure upgrades across other regions.

Parallel to these domestic investments, Azerbaijan is partnering with the United Nations under a five-year framework prioritizing environmental goals. UN Resident Coordinator Dmytro Shlapachenko noted that approximately 92% of investors are currently exploring opportunities related to the green transition, emphasizing that sustainable production has become increasingly profitable.