Baku hosts Azerbaijan Railways-ADB joint decarbonization project presentation (PHOTO)
A decarbonization project was presented in Baku as part of a collaboration between Azerbaijan Railways (ADY) and the Asian Development Bank (ADB), Trend reports.
The project aims to support Azerbaijan's national climate commitments and develop a modern, competitive, low-carbon railway system. The initiative encompasses infrastructure modernization, the implementation of energy-efficient solutions, and the transition to greener technologies in the railway sector.
The event was attended by ADB Country Director for Azerbaijan Sunniya Durrani-Jamal, ADY Chairman Rovshan Rustamov, and Director of Emerging Areas in the ADB Energy Office Cindy Cisneros-Tiangco.
In April 2025, ADB alloted financial resources for the ADY decarbonization initiative. The initiative is set to secure a financial infusion of $250,000 from the Special Technical Assistance Fund, complemented by an additional $1 million allocation from the Smart Energy Innovation Fund.
During the conference the team leader and energy specialist at the Asian Development Bank (ADB), Kangbin Zheng stated that Azerbaijan is becoming a leader in decarbonization in the region.
"A favorable business environment for decarbonization in Azerbaijan has already been created. We are talking about the legal framework, political guarantees, fiscal incentives, buyback mechanisms, market access, as well as financial and contractual protection. Compared to other countries in the region, Azerbaijan is now emerging as a leader," he emphasized.
He also announced that the Asian Development Bank (ADB) will present Azerbaijan Railways with a preliminary report on the decarbonization project in December.
“As part of the ADB's introductory mission, we plan to conduct field observations and surveys of facilities, as well as collect operational data during visits to depots, substations, stations, freight yards, logistics hubs, and network connection points,” he said.
The Director for Emerging Regions at the ADB's Energy Department, Cindy Cisneros Tiangco stated that ADB will help Azerbaijan Railways develop a decarbonization program capable of competing at the global level, the Director for Emerging Regions at the ADB's Energy Department.
"Around the world, the railway industry is entering a new era defined by electrification, digitalization, and fundamental changes in how energy is produced and used. From Japan and China to Australia and Europe, world leaders are creating smart, low-carbon railway ecosystems. Azerbaijan has a unique opportunity not only to join this movement, but also to participate in shaping its future," she noted.
The Director of the ADB Representative Office in Azerbaijan, Sunniya Durrani-Jamal emphasized that the electrification and signaling system for the Sumgait-Yalama railway line is currently being developed with the support of the Asian Development Bank.
“Railways play a transformative role as Azerbaijan strengthens its position in export diversification through regional and global logistics, as well as freight transport along the Middle Corridor and Euro-Asian routes,” she said.
Azerbaijan Railways (ADY) Chairman Rovshan Rustamov said that over the past year, Azerbaijan Railways (ADY) has reduced emissions by approximately 50%. He also emphasized that the new project will pave the way for a broader investment program.
“This project will help us prepare a fully structured investment program focused on the development of renewable energy across our entire railway infrastructure. In addition to technical aspects, the study will cover financial, economic, environmental, and social parameters to ensure both a significant impact and the sustainability of the project,” he said.
The parties have already developed the “ADY Decarbonization Policy and Framework Document.” The project launched today will ensure the practical implementation of that strategic framework, as well as the development of a fully structured investment program for renewable energy in railway infrastructure.
