Baku: Azerbaijan has been presented with a unique opportunity to contribute to the development of low-carbon railway ecosystems, as highlighted in a recent presentation by Cindy Cisneros Tiangco, Director of the Developing Sectors Department at the Asian Development Bank (ADB). The presentation focused on the decarbonization project carried out in partnership with Azerbaijan Railways CJSC (ADY) and the ADB, APA-Economics reports.
According to Azeri-Press News Agency, Tiangco emphasized the global shift towards electrification, digitalization, and innovative energy use in railway systems, citing examples from Japan, China, Australia, and Europe. Azerbaijan is not only poised to join this global movement but also has the chance to influence its future direction. The project’s technical assistance (TA) combines engineering and financial innovations to reduce fossil fuel use and minimize reliance on traditional electricity grids.
Tiangco outlined various engineering solutions, including renewable energy, battery storage systems, smart microgrids, regenerative braking, and carbon sequestration approaches. Implementing these solutions systematically could lower ADY’s energy costs and carbon footprint over time. Financially, the project seeks to harness public and private capital through creative financing methods like carbon monetization and green finance, as well as public-private partnerships (PPP) for renewable energy projects.
Long-term power purchase agreements (PPAs) and performance-based leasing are also expected to attract private investment and promote advanced technologies. Tiangco stressed the importance of capacity building to support these modern technologies, ensuring that ADY can operate a low-carbon railway system for the long term. This includes developing technical, operational, and managerial skills through targeted training and workshops.
At the ADB, projects that integrate sectoral modernization and demonstrate climate leadership are prioritized. ADY’s decarbonization goals align with these priorities, positioning the railway as a model of climate-resilient infrastructure in the region. The TA is seen as a crucial step in a long-term partnership to develop a competitive decarbonization program.
In conclusion, Tiangco expressed gratitude to ADY’s leadership and technical teams for their visionary approach and engagement, as well as to the consulting team for their ongoing efforts.