Azerbaijan has one of the fastest growing economies in the world, largely due to its oil production. The country is rich in fossil fuel resources giving it a favourable current account balance and fiscal position. Moreover, a remarkable growth rate of 17 per cent between 1999 and 2009 has allowed the government to embark on a highly expansionary fiscal policy to combat poverty and support growth, while remaining in fiscal surplus.
Azerbaijan aims to use oil revenues to kick-start the transition to a green economy and serve as a leverage mechanism for more international funding support. In order to achieve this a Green Economy Scoping Study was conducted in partnership with UNEP in 2012. Key sectors identified for greening include transportation, agriculture, and energy.
As a result of Azerbaijan’s impressive economic growth and sharply decreasing poverty rates, the country’s agricultural sector has to satisfy a rapidly increasing food demand. Increasing amounts of land under cultivation and livestock production have also led to a critical increase of greenhouse gas emissions. Strategies for greening this priority sector include: promoting stronger supply chains; enahncing public-private partnerships with agri-business; promoting education and capacity building; and enforcing stronger regulations on agricultural outputs and inputs.