15:44 - 30.05.2025

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May 30, Fineko/abc.az. The World Bank proposes the implementation of a carbon tax in Azerbaijan, ABC.AZ reports, quoting Yasemin Oruj, the head of the WB’s team in Azerbaijan.

Ms. Oruj made this statement during a seminar on the theme “Carbon Pricing & International Carbon Markets” held within the framework of cooperation with the Azerbaijani government.

She shared recommendations regarding the transition to carbon pricing policy in the country. According to her, if the Azerbaijani government decides to implement carbon pricing instruments, this process should start with a carbon tax applied to carbon-containing fuel types.

Ms. Oruj stated that such a tax would be appropriate to apply at the point where the fuel enters the economy, i.e., when it is imported or produced domestically. She emphasized that this method can be implemented through the existing excise system and initially cover 60% of total carbon emissions.

The WB official added that in the future, Azerbaijan can further expand the scope of this tax by transitioning to an emissions trading system. One of the main advantages of this approach is that the revenue from the tax can be directed in the form of cash transfers to low-income households affected by price increases as compensation.

Experts believe that this model is a balanced approach both in terms of reducing carbon emissions and protecting social justice.