Rovshan Najaf: Decarbonization losing out in competition for investment

Decarbonization is currently losing ground to other economic sectors in the competition for investment, particularly high-tech industries with a quick and clear return on capital, Rovshan Najaf, president of the State Oil Company of Azerbaijan (SOCAR), said during a panel discussion at the World Economic Forum 2026 (WEF 2026), Report informs.

According to him, to objectively assess the situation, it is necessary to consider the energy transition both across and within industries.

"In terms of inter-industry competition, over the past two years, we have seen extremely strong pressure from other sectors. Today, the most attractive sectors for investors are AI and data centers, which consume colossal amounts of electricity. Our calculations and forecasts from two years ago did not take into account such a sharp increase in electricity demand from AI and data centers. As a result, project financing in these sectors is very easy to attract: financial institutions, banks, private and large investors are eager to enter into such deals. In the face of inter-industry competition, decarbonization, in my opinion, is losing out," the head of SOCAR stated.

He also noted that within the energy sector itself, capital is being directed primarily to segments with guaranteed or clearly predictable cash flows.

"Investments are flowing where there's a clear commercial model, such as power purchase agreements (PPAs). Investments can be made in solar or wind energy, electric vehicles, or batteries-these areas have stable demand and clear project economics. Meanwhile, other decarbonization segments, lacking sufficient commercial appeal from a financial institutions perspective, continue to experience a severe shortage of investment," Najaf added.