SOCAR Green calls for greater role of local banks in green financing

Renewable energy projects in Azerbaijan currently require long-term financing of 15-20 years, placing the main burden on international financial institutions, SOCAR Green CEO Elmir Musayev said.

According to Report, Musayev made the remarks during a panel discussion at the Second Azerbaijan International Investment Forum (AIIF 2026) in Baku.

He said commercial banks, particularly local lenders, are currently unable to provide such financing.

"However, we believe it is very important for local banks to play a more active role, especially in providing long-term financing in local currency. As a local state-owned company, we also want to reduce this exposure and are looking for solutions that would allow us to implement B2B projects," he said.

Musayev said the buyers in such projects would be industrial facilities directly, helping support the green transition in hard-to-abate sectors in Azerbaijan.

"At the same time, revenues from these projects are in the local currency, the Azerbaijani manat. When financing or investment is in US dollars, this naturally creates currency risk," he said.

Musayev added that SOCAR Green has relatively favorable access to capital thanks to its strong parent company.

"We work with international financial institutions. In fact, cooperation with them is important for us not only because of favorable financing, but also because it provides additional governance oversight and expertise in environmental and social impacts," he said.

"However, when the cost of capital rises for objective reasons, it becomes more difficult even for companies like ours. I cannot imagine the impact on other private companies that are fully dependent on the cost of that capital," Musayev added.