The Energy Transition in Azerbaijan

Azerbaijan is undergoing a significant transformation in its energy sector, balancing its rich hydrocarbon reserves with ambitions to diversify into renewable energy. Historically reliant on petroleum and natural gas, the country is increasingly investing in green energy solutions such as solar and wind to reduce its carbon footprint and enhance energy security. Alongside its energy diversification, Azerbaijan is leveraging its abundant mineral resources, including aluminium, copper, and gold, which are essential for clean energy technologies and positioning the country as a key player in global supply chains for critical minerals. The country’s commitment to ESG reforms ensures sustainable development within both its energy and mining sectors. Geopolitically, Azerbaijan plays a vital role in the South Caucasus, maintaining strong ties with regional powers like Russia, Turkey, and Iran, while participating in the European Union's Eastern Partnership (EaP) to facilitate energy trade and diversification. This strategic geopolitical positioning, coupled with Azerbaijan’s growing green energy investments and mineral wealth, strengthens its emerging role as a leader in the global energy transition, contributing to regional and global energy security and clean energy solutions.