This document summarizes progress and plans under the EU4Environment initiative in Azerbaijan. It discusses three main results: 1) Greener decision making, 2) Circular economy and new growth opportunities, and 3) Environmental level playing field. Under each result, it outlines key activities completed in 2019-2020 and planned for 2020-2021, which include developing green economy training programs, strengthening environmental impact assessment procedures, promoting recycling and cleaner production among SMEs, and improving regulations and compliance. It also mentions recent green policy developments in Azerbaijan and highlights achievements of the initiative to date.

1. EU4Environment in Azerbaijan
Second meeting of the Regional Assembly, 22 September 2020

2. Result 1. Greener decision making (UNEP)
Progress in 2019-20 Plans for 2020-21
 Identified institution(s) to host, promote and deliver an
introductory Green Economy (GE) course
 Nominated candidates from various government bodies
for participation in an in-depth GE policy-making course
 Learning needs assessment conducted among all
nominated trainees
 Inter-ministerial coordination mechanism (Working
Group) for NPD on GE identified
 On-going consultations to determine direction and scope
of investment analysis
 Translation, hosting, promotion and delivery of the
introductory GE course among various civil servants
 Delivery of a tailored, interactive webinar training to
nominated participants
 Analysis of at least 2 sectoral policies by trained civil
servants
 Support to the functioning of a new inter-ministerial body
(WG)
 Begin development of an investment analysis for a
priority sector

3. Result 1. Greener decision making (UNECE: SEA/EIA)
Progress in 2019-20 Plans for 2020-21
 Assistance for finalizing the legal reform on SEA and on
transboundary EIA:
- support in finalizing the draft secondary
implementing legislation on EIA and SEA (2 draft
regulations) incl. alignment with relevant
international standards;
 Virtual Roundtable on 18 of August 2020 to discuss
recommendations on the Development of Secondary
Legislation on EIA and SEA in Azerbaijan
 Pilot SEA of a draft government plan/programme
 Training workshops on SEA
 Guidelines on SEA (in line with the focus of the pilot
project on SEA)
 Developing awareness materials on SEA and EIA
(video, leaflet, brochure etc.)
 Awareness raising event to promote the application of
SEA and EIA, incl. transboundary EIA
 A model for a SEA database to support application of
SEA procedures

4. Result 2. Circular economy and new growth opportunities (UNIDO)
Progress in 2019-20 Plans for 2020-21
 Consultations with NFPs and other stakeholders on
identification of the National Implementing Partner (NIP)
 Identified synergies for collaboration with the Agency for
the Development of Small-and Medium-Sized
Enterprises
 Collaboration with the SMEs Development Agency
(SMBDA) and OECD on greening of SMEs through an
online questionnaire as a tool to raise awareness of
enterprises about profitability of green thinking and
cleaner production practices.
 A project roadmap on EU4Environment support to
SMEs was jointly developed with OECD and discussed
with the NFPs
 Identified and recruited the National Coordinator
 Identification and recruitment of the NIP
 Launch of 2 RECP Clubs
 Supporting RECP Clubs
 Kick-off meeting and establishment of RECP
stakeholders group
 Promoting Circular Economy – Waste mapping in
municipalities
 Training national experts
 RECP assessment of 15 manufacturing SMEs
 Raising awareness and sharing knowledge
 Further institutionalising RECP
 A study on eco-labelling
 Mapping of barriers in pilot countries in view of SMGP
application

5. Result 2. Circular economy and new growth opportunities (UNEP)
Progress in 2019-20 Plans for 2020-21
 Carry out a gap analysis and develop recommendations
for the draft packaging waste law;
 Carry out an assessment and develop a plan to
establish an EPR system for packaging waste in
Azerbaijan.
 National trainings on sustainable production/eco-
innovation for companies and governments

6. Result 3. Environmental level playing field (OECD)
Progress in 2019-20 Plans for 2020-21
 Scoping mission on projects “Reforming regulatory regimes for large
emission sources” and “Strengthening of Compliance Assurance
Systems” (January 2020)
 Launch of preparatory work on green finance and investment (green
bonds) and designing and costing a green public investment
programme (draft ToRs)
 Launch of preparatory work on administrative capacity for
environmental management project (consultations with SIGMA, draft
ToR, outline and concept note)
 Draft and finalize report on existing approaches on regulations for
large enterprises
 Two assessment reports: on the compliance assurance system and
on administrative sanctions, monetary payments and penalties for
non-compliance
 Preparatory work for launch of project on designing and costing a
green public investment programme
 Explore synergy effects with the review of the Ecological Fund in
Moldova and develop, if relevant, potential lessons for Azerbaijan
 Analytical report on fossil-fuel subsidies, including Azerbaijan and
collection of data on energy-related taxes
 Mission to Azerbaijan on green bonds project (subject to travel policy)
 Regional meetings on greening SMEs, on green finance (October
2020) and on BAT (November 2020)

7. Result 3. Environmental level playing field (OECD)
Progress in 2019-20 Plans for 2020-21
 Scoping mission on projects “Reforming regulatory regimes for large
emission sources” and “Strengthening of Compliance Assurance
Systems” (January 2020)
 Draft and finalize report on existing approaches on regulations for
large enterprises
 Two assessment reports: on the compliance assurance system and
on administrative sanctions, monetary payments and penalties for
non-compliance
 Project on the costing of priority green economy-related public
investment programmes and development of competence profiles for
civil servants in the area of green financing
 Training for government officials
 Review of existing national public funding entities and practices of a
selected entity (-ies)
 National-level analysis to support green investment (green bonds),
identification of key challenges/ways forward to align financial
mechanisms with policy reforms
 Analytical report on existing/required administrative capacity in the
environmental sector
 Plan for administrative strengthening

8. Recent “green” policy developments
• Green Self-Assessment tool is under elaboration jointly with SMBDA
• Benchmark country: Ireland; the application will be installed into
SMBDA’s website;
• Any company or public entity will be able to self-assess its activities online
and get advice for improvement from the application;
• Currently, public entities working in resource-intensive sectors, such as
«AzərSu», «AzərEnerji», «AzəriQaz» are addressed to provide comments
regarding the tool;

9. Highlight of the Achievements
• Project suggestions regarding 3.1 & 3.2 activities are prepared and
presented to Beneficiaries;
• «Green» Self-Assessment tool is selected;

10. Key government priorities
• Key government priorities and policy targets for 2020-21 and any additional support
needed from EU4Environment:
• Minimize the impact of COVID-19 pandemic to economy, financial support to
SMEs via different means (including newly established Electronic Credit Platform
and boosting in export potential);
• 8 priority areas to address for post-pandemic period were defined
• Development of SME Development Centers, support to news start-ups including
«green» ones; provision of services, including help with preparation of business
plans (with «green» elements embedded);
• Modernization of VET, especially in Manufacturing and Chemical Parks;
• Establishment of new business associations;

11. Thank you for your attention