MP: Azerbaijan transitioning to opportunity‑creating state model

Azerbaijan is gradually moving from a resource‑based state model to an opportunity‑creating state model, according to MP Sadig Gurbanov, Chairman of the Azerbaijani Milli Majlis's Committee for Natural Resources, Energy and Ecology, Report informs.

Speaking at today's plenary session of the Milli Majlis at the first reading of the draft law on the State Budget for 2026, Gurbanov highlighted that the 2026 state budget primarily ensures the financing of the Azerbaijani President's key priorities – sustainable economy, social welfare, security, and flexible governance.

"Azerbaijan has become a strong state that directs investment flows into strategic areas, stimulates innovation and modernization, and shapes a new philosophy of economic development. The reduction of oil and gas revenues, including transfers from the State Oil Fund (SOFAZ), in the 2026 budget is a purposeful policy. This step is not fiscal consolidation but a political decision that establishes the financial basis for renewing the economic model and ensuring sustainable development of the non‑oil and gas sector," the MP underlined.

According to him, as President Ilham Aliyev has emphasized, dependence on oil and gas must be reduced, and the non‑oil and gas sector should become the main line of development:

"Azerbaijan's future lies in the knowledge economy, technology, and green energy. If we do not prepare for the post‑oil era today, tomorrow will be too late. The global energy system no longer operates under old logic. OPEC estimates that energy demand will increase by 85% by 2050. In this context, the transition to renewable energy must accelerate.

OPEC and other organizations' statistics show that oil demand is stabilizing. Policies to reduce carbon emissions are tightening. New energy risks are emerging, and the geopolitical balance of power is already shifting. Today, energy is not only an economic resource but also a tool of diplomatic influence and strategic security. Azerbaijan's role in Europe's energy security has grown in recent years and will increase further with the transition to green energy. Against the backdrop of global climate challenges, one of the main pillars of Azerbaijan's energy policy must be to accelerate the green energy transformation. Preparations are already underway for large‑scale wind energy projects in the Caspian Sea. Solar and wind parks have begun operating. The liberated territories, as well as the Nakhchivan Autonomous Republic, have been declared green zones."

He added: "As a result, until 2030, the share of renewable energy sources in electricity generation is targeted to rise from 14% to 30%, while installed capacity will increase from 18% to 37%. As the President has said, our goal is to turn Azerbaijan into a green energy‑exporting country. This is our strategic priority both economically and environmentally. According to World Bank estimates, attracting green energy investments could positively impact GDP, create thousands of jobs, strengthen export potential, and make foreign investment more attractive. Taking such assessments into account in current and future budget frameworks could play an important role in the sector's development.

At the same time, spheres such as waste management, waste‑to‑energy conversion, energy efficiency, and recycling also need separate support in the budget. For this purpose, establishing a Green Waste and Energy Fund, financing waste‑to‑energy projects, and reflecting annual results separately in budget reports would be effective. These measures could make ecological sustainability and the energy transition faster and more economically beneficial."

The MP also spoke about problems in his constituency, Shabran district: "There is a great need for the construction of 7 schools, major repairs of 17 schools, and the repair of 27 km of roads."