Over the past 13 years, Azerbaijan has taken important steps in improving its environmental performance, in particular in strengthening its policy framework, developing protected areas and establishing a Commission on Water Management. However, a number of key issues remain to be addressed according to the third Environmental Performance Review (EPR) presented today at COP29 in Baku.
The report looks at progress made since the second EPR in 2011 and makes 78 recommendations for future action to improve the country's environmental performance.
UNECE Executive Secretary Tatiana Molcean commented: "By carrying out an EPR for the third time, Azerbaijan demonstrates its sustained commitment to improving its environmental performance. The Review contains a series of policy and practical recommendations to help the country implement in particular low-carbon strategies, reduce pollution and improve waste management."
Improvements in environmental governance
Since the second review in 2011, the country established a comprehensive policy framework, updated environmental legislation and introduced cross-sectoral governance and institutional structures, notably the National Coordination Council for Sustainable Development and the Commission on Water Management.
The Review also notes progress in the development of protected areas, the promotion of Education for Sustainable Development (ESD) and environmental education, waste management and the environmental rehabilitation of historical oil polluted soils.
An agricultural policy was adopted (the sector employs 37% of the workforce) as well as programmes aimed at reducing rural poverty and accelerating sustainable agricultural development.
Environmental priorities for the next 5-10 years
Further improving legal and policy frameworks
Several measures are recommended, such as the continuous strengthening of the Ministry of Ecology and Natural Resources; strengthening of the environmental impact assessment (EIA) mechanism; introduction of a legal framework for the transition from administrative territorial principles to the basin water resource management principle; updating of the National Solid Waste Management Strategy, development of a policy document for ESD; and preparation of the National Action Plan to Combat Desertification.
Additionally, the Review recommends developing and implementing an integrated environment monitoring and information system to ensure the provision of high-quality information that supports strategic environmental policy planning and compliance control. It also stresses the need to fully ensure access to environmental information and public participation in environmental decision-making, in line with the obligations of Parties to the Aarhus Convention.
Implementing low carbon strategies
Azerbaijan has made significant efforts to diversify its economy and lower its dependence on fossil fuels, the share of the non-oil sector increasing from 48.8% to 62.2% of GDP from 2011 to 2021. However, these efforts should be accompanied by a gradual increase in the "green" conditions imposed on investors.
The energy mix is still largely dominated by fossil fuels, which supply 98% of primary energy and more than 90% of the country's electricity. The oil sector continued to attract the vast majority of foreign investment, with 86.6% of FDI in 2020.
The Review identifies several priority issues, including the development and implementation of low-carbon and mining strategies, reinforcement of environmental pollution abatement and resource conservation through adequate taxation, introduction of economic mechanisms to increase investments in cleaner technologies as well as strengthening of environmental compliance monitoring of industries by environmental authorities.
Gradually suppressing explicit and implicit government fossil-fuel subsidies, estimated by the IMF at over 33% of GDP, would free considerable fiscal revenue to implement policies fostering energy conservation and decarbonisation of the economy, while also accounting for affordability and social issues.
Reducing pollution and improving waste management
With a mortality rate estimated by WHO at 110 per 100,000 inhabitants in 2019, household and ambient air pollution remains a key concern in Azerbaijan, particularly in cities. The reliance on fossil fuels, the expansion of the vehicle fleet and insufficient fuel quality are major issues to address. To tackle this, the Review recommends in particular the full implementation of the National Action Plan on the ratification of key protocols of the UNECE Convention on Long Range Transboundary Air Pollution.
Water and soil pollution also remain causes of concern, with most water bodies classified as "moderately polluted".
Most waste in Azerbaijan is directed to landfills, with the exception of solid waste generated in Baku, most of which is incinerated. The Review recommends enabling waste recovery, augmenting waste recycling at source, and addressing society's limited recognition of the problems caused by waste.
Integrating climate change adaptation and mitigation in all public planning
The Review highlights the need for integrating climate change adaptation and mitigation in urban and territorial masterplans and any planning involving local communities and municipalities. It also suggests enhancing sustainable forest management (forests cover 12% of the country's territory); providing measurable incentives for maximizing energy efficiency gains; continuing to develop policies supporting the import and production of environmentally friendly vehicles; and aligning Disaster Risk Reduction (DRR) priorities with SDG targets and integrating them into all governmental strategic documents.
