EIB Global Partners with Azerbaijan to Modernize Baku’s Metro and Boost Sustainable Urban Transport

EIB Global Partners with Azerbaijan to Modernize Baku’s Metro and Boost Sustainable Urban Transport

(IN BRIEF) EIB Global and Azerbaijan have signed a Memorandum of Understanding (MoU) to support the modernization and expansion of Baku’s metro system, aiming to improve urban mobility and reduce emissions. With technical assistance from EIB Global, Azerbaijan’s Ministry of Digital Development and Transport will work on upgrading and extending the metro as part of the Baku Urban Mobility Program, which includes expanding micromobility infrastructure. This collaboration aligns with the EU’s Global Gateway initiative, focusing on sustainable infrastructure for greener cities.

(PRESS RELEASE) LUXEMBOURG, 15-Nov-2024 — /EuropaWire/ — EIB Global and Azerbaijan have signed a Memorandum of Understanding (MoU) at the COP29 Climate Conference in Baku, marking a significant step toward the modernization and expansion of Baku’s metro system. This collaboration aims to improve urban mobility, reduce greenhouse gas emissions, and support Azerbaijan’s growing urban infrastructure needs. Under the MoU, EIB Global will provide comprehensive technical assistance, working closely with Azerbaijan’s Ministry of Digital Development and Transport to advance the project’s preparation and appraisal.

With Baku’s metro serving around 620,000 passengers daily since its inception in 1967, the planned upgrades and extensions seek to accommodate a greater number of riders, reduce reliance on cars, and alleviate congestion in the city of nearly 2.4 million. EIB Vice-President Teresa Czerwińska, overseeing the bank’s projects in Azerbaijan, stated that the EIB’s support for this project is part of a shared commitment to sustainable urban transport and climate-friendly initiatives. “This MoU marks a key step in our shared vision for a greener, more sustainable Baku,” she remarked.

Aligned with the EU’s Global Gateway initiative, the Baku metro modernization project reflects the EU’s commitment to sustainable, transparent infrastructure investments. The project is part of Azerbaijan’s broader Baku Urban Mobility Program, which includes new micromobility lanes and aims to build nine additional metro stations and enhance existing infrastructure to encourage public transport usage over private car travel.

European Commission Director-General Gert Jan Koopman highlighted the project’s anticipated impact on both the environment and quality of life in Baku, noting the improved ease of transport within the city. Azerbaijani Minister Rashad Nabiyev also underscored the metro’s central role in the Urban Mobility Program, as it will help create a cleaner, faster, and more accessible transport network in Baku.

The EIB’s involvement in this initiative reflects its position as a global leader in financing climate action, supporting investments aligned with the UN Paris Agreement and aimed at sustainable urban development across the globe. This partnership stands as a testament to the EU’s Economic and Investment Plan and its commitment to building resilient, green infrastructure in Azerbaijan.

EIB at COP29 

Find an overview of EIB activities at COP29 on our website. The EIB has a pavilion in the side event area of the blue zone and is running a series of events on numerous topics. You will find the full agenda here. You are welcome to join to watch the sessions either live or later at your convenience. In addition, the EIB shares a pavilion with the group of multilateral development banks. You will find the full agenda here.

Background information 

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

The EIB Group has been transforming itself into the Climate Bank through more than a decade of progress and substantial investment, tied to several milestones: the world’s first green bonds in 2007, our first Climate Strategy in 2015 in the wake of COP21 in Paris, our new Energy Lending Policy in 2019 (ending support for fossil fuel energy projects), and then in 2020 the Climate Bank Roadmap. Consolidating our role as the Climate Bank is one of the eight key priorities in the EIB Group’s 2024-2027 Strategic Roadmap.

• In 2023, EIB Group green finance reached nearly €50 billion, more than double the amount of green finance provided in 2019, when European countries asked the EIB to strengthen its role as the Climate Bank.
• In 2021, the EIB became the first MDB to align our financial activities with the Paris Agreement.
• With its Climate Bank Roadmap the EIB Group is on track to support €1 trillion of investment in climate action and environmental sustainability through the critical decade, 2021-2030.
• The EIB has committed to increase investment in climate action and environmental sustainability to more than 50% of annual EIB lending by 2025 — last year that was exceeded with 60%.
• In August 2024, the EIB passed the EUR €100 billion mark of CAB and SAB issuance. This makes the EIB the world’s largest issuer of green bonds as well as assured sustainable bonds with dedicated use of proceeds among multilateral development banks. To meet the needs of a broad investor base, the EIB has issued these bonds in 23 currencies, a market record.

EIB Global is the EIB Group’s specialised arm dedicated to operations outside the European Union, and a key partner of the EU’s Global Gateway strategy. We aim to support at least €100 billion of investment by the end of 2027, around one-third of the overall target of Global Gateway. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local communities, companies and institutions through our offices across the world, including the EIB Regional Representation for the South Caucasus covering Azerbaijan.

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SOURCE: European Investment Bank