The small, oil-rich nation of Azerbaijan is under international scrutiny as it hosts COP29, the annual climate summit organized by the United Nations. Representatives and diplomats from around the world have arrived in Baku to deliberate on strategies for mitigating climate change — in a city historically known as a birthplace of the oil industry. Azerbaijan’s hosting of the summit has sparked intense debate about its role in the energy transition and its commitments to environmental sustainability, amid a national economy still overwhelmingly reliant on fossil fuels.
Azerbaijan’s relationship with fossil fuels dates back to 1846 when the world’s first oil fields were developed in Baku, then a part of the Russian Empire. By the late 19th century, Azerbaijan had become a global leader in oil production, and its oil resources were pivotal to the Soviet Union during the 20th century. Since its independence in 1991, Azerbaijan has continued to rely on oil and gas, which make up nearly all of its exports. Today, it is a major supplier of energy to Europe, especially since the energy crisis following the 2022 Russian invasion of Ukraine.
For Azerbaijan’s President, Ilham Aliyev, the country’s oil and gas resources are seen as a “gift of the gods.” Aliyev, in power for more than 20 years, has steered Azerbaijan to economic prominence in the region but also faced criticism for stifling free speech and limiting civil society activities. For him, COP29 in Baku is both an honor and an opportunity to spotlight Azerbaijan’s burgeoning green ambitions.
Aliyev has stated that Azerbaijan’s climate strategy includes developing renewable energy for domestic use, which, he claims, would allow the country to export more oil and gas internationally. He asserts that hosting COP29 is a “sign of respect” from the global community, recognizing Azerbaijan’s contributions to the green transition, even if the country’s approach and commitment remain questioned.
Azerbaijan’s dual identity as a fossil-fuel giant and aspiring renewable energy leader is a central theme of this year’s COP. The presence of the summit in Baku has invited criticism from environmental activists and analysts, who question the nation’s sincerity. Critics argue that Azerbaijan’s rhetoric on green energy does not align with its record, accusing it of “greenwashing” — giving the impression of environmental responsibility without significant action to back it up.
One of the skeptics, Kate Watters, executive director of Crude Accountability, pointed out that Azerbaijan has yet to show genuine progress in moving away from fossil fuels. Watters emphasized that environmental monitoring in the country is limited, with civil society and environmental activists facing harassment and detention. As a result, concerns about pollution and health impacts from the oil and gas sector often go unheard.
Communities near industrial hubs, like the Sangachal terminal outside Baku, reportedly suffer from health issues attributed to pollution, including skin rashes and respiratory problems. However, without a robust mechanism to address these issues, many Azerbaijanis find themselves without recourse or support.
At the helm of the COP29 negotiations is Mukhtar Babayev, Azerbaijan’s Minister of Ecology and Natural Resources and former vice president at the state-owned energy company SOCAR. Babayev has highlighted that Azerbaijan is taking steps toward a “green transition,” including initiatives for solar and wind energy projects, particularly in the contested region of Karabakh, which saw renewed conflict in 2023. Babayev said he hopes Azerbaijan’s leadership at COP29 will be remembered for setting a new path toward renewable energy and that the summit will build on global agreements from COP28, where countries pledged to reduce fossil fuel use.
“Our country’s experience with high temperatures and other climate impacts has demonstrated the need for collective action on global warming,” Babayev stated. He emphasized Azerbaijan’s investments in wind energy, and the government has reportedly begun work on substantial renewable energy projects.
However, environmental watchdogs note a sharp increase in gas flaring across Azerbaijani oil fields, a process that releases large amounts of carbon dioxide and methane, both potent greenhouse gases. Since 2018, data from Global Witness, a non-profit organization, shows that flaring has increased by more than 10%, undermining Azerbaijan’s claims of environmental responsibility.
Louis Wilson, head of fossil fuels investigations at Global Witness, criticized Azerbaijan’s commitment to the climate crisis, calling the flaring issue a “basic function of climate diplomacy” that the country has not addressed.
With its rich oil reserves and one of the world’s largest gas fields, Shah Deniz, Azerbaijan remains a central player in European energy markets. As Europe seeks alternatives to Russian energy supplies, Azerbaijan has positioned itself as a crucial supplier. In 2022, the European Union agreed to double its imports of Azerbaijani gas by 2027 to reduce its dependence on Russia. While the deal underscored Azerbaijan’s value as an energy supplier, doubts remain over the country’s ability to meet these increased demands.
According to President Aliyev, increasing domestic renewable energy will save natural gas for export, which will contribute to the Southern Gas Corridor, a pipeline project designed to carry Caspian gas to Europe. “The more renewable sources we have, the more natural gas we will save,” he said earlier this year.
However, climate activists argue that the expansion of Azerbaijan’s fossil fuel sector conflicts with the global need to curb carbon emissions. Critics say that by maintaining — and even increasing — fossil fuel production, Azerbaijan is perpetuating the world’s reliance on carbon-intensive energy sources, counteracting efforts to limit climate change.
Azerbaijan’s official climate targets have come under fire from climate scientists, who have rated the country’s Nationally Determined Contribution (NDC) to the Paris Agreement as “critically insufficient.” The NDC, a key document outlining a country’s climate action plan, was updated in 2023 but was criticized for lacking detail on measurable actions.
Further complicating Azerbaijan’s climate goals is its economic reliance on oil and gas. Despite rhetoric on renewable energy, BP, one of Azerbaijan’s largest foreign investors, recently inaugurated a new offshore oil platform in the Caspian Sea. This addition points to continued investments in fossil fuels, signaling Azerbaijan’s hesitancy to break from its traditional energy base.
As diplomats gather in Baku, the international community faces the complex task of navigating Azerbaijan’s historical legacy in the oil industry alongside its aspirations for a renewable future. For many climate experts, the key question is whether Azerbaijan can effectively lead a conference focused on transitioning away from fossil fuels.
Environmental activists stress that if COP29 is to be successful, it must address not only emissions reductions but also create robust frameworks for ensuring transparency and accountability. Azerbaijan’s track record on civil rights and the lack of environmental protections have led some to worry about the feasibility of achieving meaningful climate goals under its leadership.
At the same time, the EU’s agreement with Azerbaijan to double gas imports underscores the continued demand for fossil fuels even as countries commit to reducing carbon emissions. This dependence on oil and gas, combined with global energy needs, highlights the ongoing challenge of balancing energy security with climate ambitions.
As COP29 proceeds, all eyes are on Azerbaijan. The conference represents a pivotal moment for a nation that has historically benefited from fossil fuels to demonstrate its commitment to a greener future. Azerbaijan’s renewable energy projects and its leadership in COP29 offer the potential to set a positive example in the Caspian region, but questions persist about its resolve and capacity to deliver on its promises.
While Azerbaijan’s official stance embraces both fossil fuel production and renewable energy, international and domestic pressures are likely to mount for the country to adopt stronger measures to reduce its environmental footprint. Some experts argue that Azerbaijan’s dual role as a fossil fuel exporter and COP29 host could become a catalyst for more ambitious environmental reforms.
The real test, however, lies in Azerbaijan’s willingness to make meaningful changes beyond the conference — by curbing emissions, reducing flaring, and addressing the environmental impacts of its energy sector. As COP29 brings global attention to Baku, Azerbaijan stands at a crossroads between its legacy as a fossil fuel powerhouse and the demands of a rapidly warming world.
