Green Development: Energy efficiency and alternative sources.

The Green Development Policy is a national policy that lays down actions for building a green economy as a component of sustainable development. The green economy areas are listed as construction, transportation, smart grid technology (Smart Grid), wind energy, solar energy and advanced bioenergy. This policy sets out the purposes of green growth as to: adopt environmentally friendly approach to green development model; increase productivity of natural resources; and promote human capital, access to information and innovation. These purposes lead to green economy which enables less environmental risk and greater efficiency.
Even though Azerbaijan is rich in oil and gas, alternative energy mechanisms will be developed for long-term sustainable development. The potential of using renewable energy sources (water, wind and solar energy) will be increased to ensure energy security, energy diversification, environmental protection and generate additional jobs. Sustainable energy supply will be achieved through alternative and renewable energy sources, as well as by producing bioenergy from agricultural and household waste. Energy subsidies will be introduced to fight energy poverty, increase local energy supply, support industrial development and employment, ensure economic diversification and protect the environment. The subsidy reform will be implemented for ensuring social protection of low-income groups and directing the saved funds to the improvement of social welfare. Energy efficiency will be included in the State Investment Program to purchase equipment that serves energy efficiency and implement an active investment policy in this direction. In addition to that, the Energy Saving Fund will be established to finance the projects aimed at solving energy saving and energy efficiency issues and carry out educational work in the field of energy efficiency. Energy efficiency will be increased in the transport sector by improving the public transport system, setting energy efficiency and greenhouse gas emission standards for vehicles imported and currently used in the country, and raising public awareness on energy efficiency. Investments will be attracted to the implementation of energy efficiency projects in the private sector in order to lead companies to produce products at lower costs and, as a result, products will be more competitive in the market.