Azerbaijan, Kazakhstan, Uzbekistan sign clean energy deal with Asian banks

Azerbaijan, Kazakhstan, and Uzbekistan have partnered with regional banks to launch a clean energy project connecting Central Asia to Europe via the Caspian Sea.

Azerbaijan, Kazakhstan, and Uzbekistan have signed a cooperation agreement with two major regional financial institutions—the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB)—to initiate the Caspian Green Energy Corridor project, according to Azerbaijan’s Ministry of Energy.

The memorandum of understanding was formalised in Baku on Friday, with the energy ministers from all three countries and senior representatives from ADB and AIIB present, during discussions at the Southern Gas Corridor and Green Energy Advisory Councils.

The agreement marks the beginning of a feasibility study for the first phase of a proposed clean energy corridor linking Central Asia to Europe via the Caspian Sea.

Azerbaijani Energy Minister Parviz Shahbazov emphasised that the project aims to integrate the energy networks of the three nations, highlighting that the involvement of ADB and AIIB is a significant milestone.

Kazakh Energy Minister Erlan Akkenzhenov pointed out that the initiative promotes regional energy cooperation, sustainable development, and the export of clean energy.

Uzbek Energy Minister Jurabek Mirzamakhmudov stated that the corridor would serve as a reliable conduit for connecting Central Asia’s renewable energy resources to European markets.

ADB official Evgeniy Zhukov described the project as a strategic priority, noting it would bolster cross-border collaboration on clean energy infrastructure.

AIIB representative Hong Wei expressed the bank’s pleasure in supporting the study, adding that Azerbaijan will play a pivotal role as the gateway for Central Asia’s clean energy into Europe.

The three nations had earlier signed a broader green energy cooperation agreement at the COP29 summit in November 2024.

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