ECO preparing to create carbon market for member countries

Steps toward an ECO-wide (Economic Cooperation Organization) carbon market are emerging, which could incentivize green investments and cost-effective emissions reductions, becoming a powerful tool for sustainable development, ECO Secretary-General Dr. Asad M. Khan said in an interview with Report.

"While ECO members have taken national-level actions on climate adaptation and disaster resilience, regional coordination remains uneven due to differences in capacity, financing and governance. ECO's role as a facilitator and knowledge-sharing platform is critical to align policies, scale pilots and build integrated frameworks that strengthen resilience and accelerate the region's low-carbon transition," he noted.

"Azerbaijan plays a strategic and proactive role within ECO, leveraging its location between the Caspian Sea, the Caucasus and Central Asia to advance regional cooperation in climate, energy, agriculture and industry. Azerbaijan's key initiatives include hosting the ECO Clean Energy Center, which will support renewable energy and energy efficiency markets, and co-developing the RESCUE initiative for resource efficiency and the circular economy," he said.

"The ECO-UNIDO Clean Energy Center (CECECO) in Baku, with its Charter now in force since August 26, 2025, is designed as a pivotal hub to accelerate the region's sustainable energy transition. The Center will focus on scaling up low-carbon and climate-resilient energy infrastructure, promoting higher value-added manufacturing and services, and facilitating south-south knowledge and technology transfer through the Global Network of Regional Sustainable Energy Centers (GN-SEC).

CECECO's practical implementation will rely on targeted projects and work programs based on global best practices, adapted to the needs of ECO member states. Countries with limited access to modern renewable energy technologies will benefit from technical assistance, capacity building and accessible financing, ensuring practical adoption. By mobilizing investment at scale and coordinating with international partners, the Center aims to create a vibrant regional clean energy market and drive sustainable industrial growth across the ECO region," he added.

The full interview is available here