CLIMATE FACTS AND POLICY

POLICIES AND PROCESSES 51.8 MILLION tCO2e Policy framework 5.4 TONNES PER CAPITA Azerbaijan 2020 development concept State programme on poverty reduction and sustainable development Green economy concept State programme for the development of industry for 2015-2020 National programme on restoration and expansion of forests Transport sector development strategy 2020 targets Increase use of alternative energy sources: • 20 per cent share of renewable energy in electricity • 9.7 per cent share of renewable energy in total energy consumption Decrease losses in the gas distribution system 2030 targets and INDC Mitigation Base year: 1990 35 per cent emission reduction by 2030 compared to the base year Covered sectors: Energy, oil and gas, agriculture, waste, transport and LULUCF

Adaptation priorities Development of measures for agriculture, forest, water resources, coastal zones, human health and tourism GHG inventory of all sectors and gases 9.7 5,496 Third national communication to UNFCCC MILLION US $ POPULATION PER CAPITA First biennial update report to UNFCCC 90% GDP Application of revised 1996 IPCC Guidelines for national greenhouse gas inventories OF TOTAL ENERGY System of GHG emissions monitoring, reporting and verification (MRV) in preparation stages CONSUMPTION FROM FOSSIL FUELS

Sources: Third national communication CLIMATE ACTIONS (2016); demographic, energy and economic data from the World Development Paris agreement on climate change Indicators of the World Bank: Azerbaijan ratified Paris agreement on climate change in January 2017 http://data.worldbank.org/indicator/ GHG emissions 29 per cent reduction of total GHG emissions in 2012 compared to 1990 Energy-related actions Establishment of the State Agency for Alternative and Renewable Energy Sources Modernization of oil and gas processing technologies

Industrial sector development Promotion of efficient and environmentally friendly energy technologies Expansion of alternative energy installations and equipment

CLIMATE FINANCE National energy sector investments by 2030 US $57 million in modernization of energy production, distribution networks and transmission lines, increase of renewable energy sources ADB US $165 million for establishment of the Samukh Agro-Energy Residential Complex as renewable (biomass and solar) energy producer (NAMA)

GEF Climate policy development, GHG inventory and reporting under UNFCCC, energy efficiency in residen- tial buildings, wind energy plant (NAMA)

International Climate Initiative () Phase-out of CFCs in refrigerators (NAMA) Khebda Levashi

Tskhinvali

A Gori laza 0 50 km ni R U S S I A Map produced by ZOÏ Environment Network, January 2017 Balakan Xudat

Zaqatala Xachmaz Akhty Dedoplistsqaro C a s p i a n Sabran K Shaka ur h S e a a k y Samur n Tashir a G Tovuz Oguz Res. Boyuk Shor Mingachevir Yashma Absheron Dilijan peninsula Gyumri Ganja Shamaxi Agdash Shimal Artik Sevan Yevlax Pirallahi Hrazdan A Z E R B A I J A N Barda Kovsan Lake Gavar Sevan Armavir Qazimammad Qobustan Martuni Vardenis Agcabadi Kalbacar A Nagorno- Igdir ra Saatli Shirvan s Yeghegnadzor Xankandi () s Dogubeyazit Ara Pars Salyan Goris Abad Bilasuvar Kura Sisian Shahbuz Neftchala Solar Calilabad N a k h c h i v a n Kapan Nakhchivan (Azerbaijan) Masalli Muradiye OrdubadEnergy and emissions Meghri Yardimli Culfa Q a r -TiveFossil fuel energy installations and carbone emissions Renewable energy installations and plans h

S Leric I R A N u Khvoy CO2 emissions from thermal power plants, million tonnes per year: Solar park / solar park under construction Ahar Astara (Azerbaijan) Marand more than 2 Thermal power plant (coal/oil/gas) Astara () Hydropower plant / hydropower plant under construction Sufian 1 — 2 Ardabil Wind park under construction Energy and emissions 0.5 — 1 Thermal power plant (coal/oil/gas) Hashtpar Energy and emissions0.1 — 0.5 Biogas station under construction Bashkale under construction 0.01 — 0.1 Fossil fuel energy installationsL a k e U r m i a and carbon emissions Sarab Renewable energy installations and plans Installed capacity: CO2 emissions from thermal power plants, million tonnes per year: Solar park / solar park under construction More than 100 MW Pipelines Hydropower plant / hydropower plant under construction more than 2 Thermal power plant (coal/oil/gas) 50 MW — 100 MW 1 — 2 Oil Wind park under construction 0.5 — 1 Thermal power plant (coal/oil/gas) 1 — 50 MW 0.1 — 0.5 under constructionGas Biogas station under construction 0.01 — 0.1 Gas, planned Installed capacity: Forests (high CO2 absorption potential) More than 100 MW Pipelines Oil and gas 50 MW — 100 MW Oil Oil spots 1 — 50 MW Gas Natural gas spots Gas, planned Subsea oil field

Forests (high CO2 absorption potential) Oil and gas

Oil spots PoliciesNatural and gas spots institutions Other relevant governmental institutions include the State Agen- Subsea oil field cy for Alternative and Renewable Energy Sources (SAARES), The Ministry of Ecology and Natural Resources (MENR) is re- which is responsible for renewable energy and energy efficiency sponsible for preparation and implementation of policy on climate planning and regulation, tariff policy and enforcement. SAARES change. The Climate Change and Ozone Centre of the National is also the lead agency for implementing Azerbaijan’s 20 per cent Hydrometeorological Department of MENR manages GHG in- renewable energy target by 2020. ventories and national reporting to UNFCCC. The State Commis- sion on Climate Change is established as a coordinating forum “Azerbaijan 2020: Look into the future” development concept on climate issues. It is composed of representatives of 18 min- aims to reach the level of OECD countries for energy intensity istries and other governmental institutions, including MENR, the and carbon dioxide emissions per unit of GDP; it also calls for Ministry of Agriculture, the Ministry of Economic Development, green economy development and clean energy production. the Ministry of Industry and Energy, the State Oil Company of Azerbaijan Republic (SOCAR), the Ministry of Emergency, Azer- The State programme on poverty reduction and sustainable devel- su JSC, Azerbaijan Amelioration and Water Management JSC, opment promotes GHG emission reductions, energy efficiency and and the National Scientific Academy of Azerbaijan. renewable energy, and increases in forests and protected areas. Khebda Levashi

Tskhinvali

A Derbent Gori laza 0 50 km Telavi ni R U S S I A Kura GEORGIA Map produced by ZOÏ Environment Network, January 2017 Tbilisi Balakan Xudat

Rustavi Xachmaz Akhty Qusar Marneuli Dedoplistsqaro C a s p i a n Quba Sabran Ninotsminda Shaka h S e a k y n Tashir Qazax Ku a ra G Siyazan Tovuz Oguz Qabala Mingachevir Res. Ismayilli Dilijan Mingachevir Gyumri Shamkir Sumgait Absheron Ganja Agdash Shamaxi peninsula Artik Yevlax Pirallahi Hrazdan A Z E R B A I J A N Barda Kurdamir Baku Lake Tartar Gavar Sevan Zardab K Armavir ura Qazimammad Qobustan Martuni Vardenis Agcabadi Kalbacar Agdam s A ARMENIA Nagorno- ra Igdir ra A Saatli Shirvan s Karabakh Imishli Yeghegnadzor Xankandi (Stepanakert) Fuzuli s Dogubeyazit Ara Pars Salyan Sharur Goris Abad Bilasuvar Kura A ra Shahbuz Sisian s Neftchala Qubadli N a k h c h i v a n Calilabad (Azerbaijan) Kapan Nakhchivan Masalli y sca Muradiye Vila Meghri Ordubad Yardimli Impacts of climateCulfa change Q a Lankaran r e

h

S

u Khvoy I R A N Ahar Astara (Azerbaijan) Marand Astara (Iran) Sufian Ardabil EnergyImpacts ofand climate emissions change Hashtpar Bashkale Tabriz Sea and coastalL a k eareas: U r m iincrease a of sea level, salinization of coastal areas, Sarab Desertification and soil degradation deficit of safe drinking water, reduction of quality and diversity of fisheries Heatwaves Risk of floods Storms Flash floods Potable water scarcity Landslides Mudflow

Azerbaijan scorecard

Country’s share of global emissions National climate policy actors Country’s emissions per capita Policy leadership and UNFCCC focal point: Ministry of General climate action ambition Ecology and Natural Resources

Coordinating advisory body: State Commission on Climate Mitigation commitment: Change Emissions reductions GHG Inventory: Climate Change and Ozone Centre of the Decoupling from population growth National Hydrometeorological Department Decoupling from economic growth Renewable energy prospects

Adaptation action Greenhouse gas emissions and projections for Azerbaijan Million tonnes 80

70

60

50

40

30 INDC 20

10

0 Projections -10 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2020 2030

Energy Industrial processes Agriculture Waste Land use, land use change and forestry Business-as-usual

Projections are based on and Azerbaijan's 3rd National Communication and INDC © Zoï Environment Network (2017)

Climate finance

The State programme for the development of industry for 2015- International agencies such as GEF, International Climate Ini- 2020 promotes efficient and environmentally friendly energy tiative, ADB and UNDP support the preparation of Azerbaijan’s technologies and the expansion of alternative energy. climate reports, and the application of MRV. UNDP/GEF provide support to a low-carbon development programme, and Germany supports the phase-out of CFCs. Improved energy efficiency of buildings, the waste sector and district heating are important ar- Climate actions eas of development for the future.

The economy of Azerbaijan is one of the most energy-intensive in Azerbaijan expects to allocate US $57 million for investment in the region, largely as a consequence of the oil and gas production the energy sector by 2030. The funds will support the develop- that is also the main source of the country’s GHG emissions. By ment of a low-carbon concept, modernization of technologies in 2012 Azerbaijan had nevertheless achieved a 29 per cent reduc- electricity and thermal energy production, reconstruction of dis- tion of GHG emissions compared to 1990 due to modernization of tribution networks and transmission lines, and an increase in re- the industry and deployment of more efficient technologies. newable energy sources.

In January 2017 Azerbaijan ratified the Paris agreement on cli- ADB has provided US $165 million for the establishment of mate change. The INDC of Azerbaijan prioritizes the use of alter- Samukh Agro-Energy Residential Complex. This agriculture and native energy and development of low-carbon measures in the food-processing centre will be powered by renewable sources for commercial and residential sectors, and sets a target to reduce electricity and heat generation, including solar, geothermal, and

CO2 emissions by up to 35 per cent by 2030 compared to the locally produced biomass waste. The Complex is expected to re- base year 1990. duce cumulative GHG emissions by 346 000 tCO2e by 2020. If the Samukh Complex is successful, Azerbaijan plans to replicate Azerbaijan has allocated a national investment programme for the experience at five other sites of similar size. the energy sector until 2030.

Azerbaijan has adopted several strategies to promote renewable energy, including the establishment of the State Agency for Alter- Sources of information for the scorecard native and Renewable Energy Sources. The country has set re- Laws and regulations, Third national communication, Technology needs newable energy targets for 20 per cent of electricity consumption assessment for climate change mitigation and adaptation, INDC and 9.7 per cent of total energy consumption to come from renew- able energy sources by 2020. Part of the strategy entails the in- Reports of State Statistic Committee, Hydrometeorological Department stallation of 2 000 MW of renewable energy capacity. According to of the Ministry of Ecology and Natural Resources, Climate Change and its strategic plan 2015-2018, SAARES aims to construct by 2018 Ozone Centre of the National Hydrometeorological Department wind, solar, bioenergy and hydropower facilities that generate a total of 735 MW of new alternative and renewable energy supply. Analytical materials and expertise of Zoï Environment Network, as well as SAARES is studying a new tariff methodology for renewable and organizations and experts of Azerbaijan alternative energy, and will set a new tariff for solar power. This publication has been pro- duced with the assistance of the In cooperation with international donors, such as UNDP, ADB, European Union. The contents and GIZ, Azerbaijan is developing a national climate adaptation of this publication are the sole and mitigation strategy. Azerbaijan has identified adaptation pri- responsibility of the authors and ority sectors as agriculture, forests, water resources and coastal can in no way be taken to reflect the views of the European Union. zones, tourism and public health. Their integration into a national adaptation strategy, sectoral strategies and practical adaptation action is still to be implemented. The designations employed and the presentation do not imply the expression of any opinion whatsoever concerning the legal status of any country, territory, city or region or of its authorities, or concerning delimitation of its frontiers or boundaries.