Azerbaijan, China strengthen ties through green energy cooperation in Belt and Road Initiative

The frequency of official visits at various levels between Azerbaijan and China, both of which play significant roles in the global economy, is on the rise, further enhancing bilateral relations. Notably, projects in the green energy sector stand out, reflecting a mutual commitment to sustainable development and collaboration in this critical area.

On October 23, Azerbaijan's Energy Minister Parviz Shahbazov spoke at the 3rd Belt and Road Energy Ministers' Conference held in Qingdao, China, addressing the joint cooperation project "One Belt, One Road."

During his speech, the minister highlighted the critical role of "green energy corridors" in the development of the Belt and Road initiative. He emphasized that "One Belt, One Road" is a strategic initiative that shapes the modern geo-economic landscape of Eurasia. Azerbaijan’s geographic position as a transit center between Europe and Asia enhances its importance in this project, particularly through its transport and energy corridors. This positioning not only facilitates trade but also underscores Azerbaijan's strategic role in regional energy security.

The "One Belt, One Road" initiative, announced by China in 2013, aims to create infrastructure and foster mutual relations among Eurasian countries. It focuses on two main development directions: the "Silk Road Economic Belt" and the "Maritime Silk Road." This framework is designed to establish a trade corridor for direct transportation of goods from East to West under favorable conditions, thus streamlining global supply chains.

Azerbaijan was the first country in the Caucasus to support China's "One Belt, One Road" initiative, reinforcing its role as a logistics center and bridge in the strategy’s implementation. This partnership not only enhances Azerbaijan's economic landscape but also positions it as a key player in regional geopolitics.

Minister Shahbazov emphasized the significance of the Joint Declaration adopted between the two countries. He stated, "The Declaration, which is the pinnacle of Azerbaijan-China relations, opens wide opportunities for the development of energy partnerships within the modern Silk Road belt. It establishes a roadmap that deepens our cooperation in oil and gas production, processing, and green energy." This statement reflects a strategic alignment between the two nations, showcasing how shared goals in energy can lead to sustainable development.

The declaration encompasses key sectors such as oil and gas production and processing, green energy, transport infrastructure, information and telecommunications, the digital economy, non-ferrous metals, and construction materials. By actively promoting cooperation in these priority areas, Azerbaijan and China can foster collaboration grounded in market economy principles, ultimately yielding beneficial outcomes for both nations' populations.

Notably, both countries are advancing cooperation in renewable energy resources. China, as an industrial powerhouse, has shown particular interest in and support for green energy initiatives. For Azerbaijan, transitioning to clean energy is a priority, making this collaboration mutually beneficial. The convergence of their energy agendas highlights a crucial area of synergy between the two nations.

Chinese companies are set to play a pivotal role in Azerbaijan's green energy development, particularly through supplying "green technologies" and establishing solar power plants. The Memorandum of Understanding with "Energy China" aims to implement 2 GW renewable energy projects, which includes the construction of two solar power plants with a total capacity of 160 MW and the 100 MW "Gobustan" hydropower project. The involvement of other Chinese firms like "China Datang," TBEA, and "PowerChina" further illustrates the depth of this partnership.

This cooperation is particularly vital as Azerbaijan enhances its "green energy corridors" in the next phase of renewable energy development until 2030. The minister highlighted the "Caspian-Black Sea-Europe," "Azerbaijan-Turkiye-Europe," and "Central Asia-Azerbaijan-Europe" corridors, which aim to connect the energy systems of Azerbaijan, Kazakhstan, and Uzbekistan with the European energy market. This strategic initiative is projected to transfer approximately 10 GW of energy between Asia and Europe, thus fostering a more integrated regional electricity market. Such developments not only align with China's carbon neutrality goals but also diversify its energy supply, allowing for the import of "green energy" from Central Asia and Azerbaijan.

Minister Shahbazov also addressed energy initiatives under the COP29 Presidency, urging "Belt and Road" countries to actively engage in the Global Climate Summit and support Azerbaijan's initiatives.

At the conclusion of the conference, the "Belt and Road Green Energy Cooperation Action Plan" was adopted, and the office of the Belt and Road Energy Partnership Secretariat was established. This signifies a formal commitment to collaboration, setting the stage for future projects that can enhance energy security and promote sustainable development across the region.

Cooperation between Azerbaijan and China across various sectors—including political, economic, investment, transport, green energy, and public diplomacy—is strengthening. Recently, the bilateral relationship has achieved a qualitatively new level.

Despite the significant differences in the size of their economies, Azerbaijan and China exhibit strong economic complementarity and substantial potential for enhanced collaboration in industrialization and investment. This declaration is anticipated to fully leverage the mechanisms for cooperation in these areas, fostering deeper engagement in planning and policy initiatives.

In conclusion, the strengthening cooperation between Azerbaijan and China marks a significant development in their bilateral relations, particularly in the realms of energy, transport, and sustainable development. The recent discussions and agreements, highlighted by Azerbaijan's participation in the 3rd Belt and Road Energy Ministers' Conference, underscore both countries' commitment to fostering a strategic partnership.