Azerbaijan has pledged up to 1 billion manat (€540 million) toward climate-resilient irrigation infrastructure as part of its 2026-2030 state program. The announcement was made during a regional climate week, marking two years since the nation hosted COP29 in Baku.
Revealed by Agriculture Minister Majnun Mammadov at Baku Climate Action Week, this funding accounts for nearly 40% of the state’s agricultural budget designated for climate adaptation.
The financial support will facilitate the implementation of advanced irrigation systems throughout the South Caucasus, a region increasingly threatened by water scarcity, unpredictable growing seasons, and rapid soil degradation.
In collaboration with the UN Food and Agriculture Organization (FAO), the government also introduced an AI-driven farmer scoring system this year.
Initially piloted in 2024 and fully tested in 2025, the digital platform is designed to distribute advance subsidy payments to smallholder farmers managing plots ranging from five to 100 hectares.
Minister Mammadov explained that eligibility for the program is determined by three key criteria: the integration of modern farming methods, the economic viability of the cultivated crops, and the utilization of water-conserving or soil-regenerating techniques.
“The scoring system evaluates three fundamental pillars,” Mammadov stated. “First, the adoption of modern agricultural practices; second, the economic value and profitability of the crop for both the farmer and the broader economy.”
“And third, ecological impact—specifically, how the selected crop affects soil health and whether the farmer utilizes climate-supporting subsidies, such as soil-regenerating or water-saving methods.”
Smallholder farmers in the Caucasus are particularly vulnerable to climate volatility, where even slight fluctuations in temperature or water availability can devastate crop yields.
Mammadov further noted that international investors backing local agricultural infrastructure would be granted the same access to subsidies as domestic operators.
“Agriculture is in a very unique position; it is both a contributor to and a victim of climate change,” remarked Nasar Hayat, the FAO Representative in Azerbaijan.
An Opportunity to Build
Meanwhile, the UN Industrial Development Organization (UNIDO) encouraged Azerbaijan to prioritize the domestic industrial application of green hydrogen before setting its sights on European export markets.
Petra Schwager, Chief of UNIDO’s Climate and Technology Partnership Division, pointed out that pipeline exports to Europe would require years of development due to the current lack of necessary infrastructure.
In the near term, she suggested that green hydrogen derivatives, such as green ammonia, could be effectively utilized in domestic fertilizer production and as shipping fuel.
“The true benchmark of success for industrial decarbonization is not policy pledges or technology partnerships, but verifiable CO2 emission reductions,” Schwager emphasized.
Regarding climate financing, Turkey unveiled two new mechanisms ahead of COP31 in Antalya. The first, BRIDGE, is a technical support platform created alongside the UN Development Programme to help developing nations structure investment-ready projects. The second, SURF, adapts a Turkish municipal lending model to expand low-cost credit lines to cities across the developing world.
Fatma Varank, CEO of COP31 and Deputy Minister of Turkey’s Ministry of Environment, Urbanization, and Climate Change, highlighted the enduring cooperation among host nations.
“Along our shared journey from Baku to Antalya, we have an opportunity to build on this foundation and achieve stronger outcomes by sharing experiences, deepening partnerships, and channelling climate finance toward tangible implementation,” Varank stated.
Azerbaijan’s Deputy Foreign Minister Yalchin Rafiyev confirmed that a proposed Black Sea subsea cable—intended to transmit renewable electricity from Azerbaijan and Central Asia to European markets—remains a strategic priority.
“Continuity between the COPs is extremely important in order to preserve the legacy for the host country, while also being crucial on a global scale,” Rafiyev noted.
He added that the legacy of COP29 has encouraged Kazakhstan, Uzbekistan, Tajikistan, and Kyrgyzstan to advance with specific green grid proposals.
During COP29 in 2024, developed nations agreed to supply at least $300 billion (€258 billion) annually by 2035 to assist developing countries in reducing emissions and managing climate impacts.
UN Secretary-General António Guterres commented at the time that the agreement provided “a base on which to build,” though he acknowledged it fell short of what the crisis truly demands.
Jens Nielsen, Founder and CEO of the World Climate Foundation, observed that global climate diplomacy is experiencing a structural evolution, “changing from the politics of climate change to the economics of climate change.”
“We need to move beyond commitments and action straight into bankable financial transactions,” he explained.
Baku Climate Action Week was held concurrently with the UN Framework Convention on Climate Change regional climate week for Eastern Europe, the Caucasus, and Central Asia.