IFC expert: Fiscal and non‑fiscal tools needed for green buildings in Azerbaijan

To transition to green buildings, countries including Azerbaijan should deploy both fiscal support measures and non‑fiscal incentives, said Leyla Huseynli, sustainable finance expert at the International Finance Corporation (IFC), on the third day of Baku Climate Action Week (BCAW2025), Report informs.

According to her, since over 90% of buildings in Azerbaijan are connected to the gas network, the country has the potential to earn additional revenue from exporting gas volumes freed up through energy efficiency, given that export prices are significantly higher than domestic ones.

"This can bring in extra revenues to the economy, promote growth through job creation, development of green skills, and the production of eco‑friendly materials. The public sector has an important role, for example, by certifying public buildings and spaces. For end users - homeowners, tenants, businesses - the economic payoff is crucial: lower utility bills, savings in energy and water, use of sustainable materials," Huseynli said.

She emphasized that studies show living in green buildings has positive effects on health and occupants' satisfaction.

"For investors and developers, this means higher occupancy rates, faster sales, and increased asset value, since green buildings command higher prices and pay back more quickly. To support this transition, governments must put in place fiscal tools - tax incentives, concessional financing, and risk‑mitigation mechanisms to attract private capital. At the same time, non‑fiscal incentives are important too: streamlined permitting for green developers, favorable financing terms," the IFC expert added.