The “Policy Dialogue for Just Energy Transitions: Identifying Pathways to Prosperity Post Fossil Fuels”, co-hosted by Climate Strategies and Salzburg Global Seminar from September 8 to 12, 2024, brought together policymakers, decisionmakers, and leading researchers from ten oil and gas producing countries as well as representatives from international organisations. They shared and discussed evidence-based approaches to the transition from fossil fuel dependent economies to inclusive, equitable, and sustainable systems. As part of our efforts to ground the dialogue in evidence-based research, we commissioned five in-country briefs exploring just energy transitions in oil and gas producing nations. This briefing provides insights into the energy landscape in Azerbaijan.

Key Takeaways:

• Fossil fuels remain the backbone of the Azerbaijani economy. In 2023, the share of the oil and gas sector in GDP was 35.3% and the share of oil and gas revenues in the total budget income was 51.5% 

• Planned renewable energy development will supplement fossil fuel production rather than replace it, with natural gas production and exports still growing.  Renewable energy development is seen as a replacement for gas in electricity generation, allowing for increased gas exports to Europe, at significantly higher prices. The EU’s near-term objectives to reduce overall gas demand jeopardise such plans and highlight the need for genuine energy transition strategies. 

• A comprehensive strategy for the energy transition can support long-standing economic diversification efforts through renewable energy development and greater private sector engagement.