Azerbaijan: COP29 - EIB Global to support Azerbaijan in planning Baku metro upgrade

• EIB Global and Azerbaijan sign Memorandum of Understanding to strengthen collaboration.
• Cooperation includes comprehensive technical assistance by the EIB and setting up a cooperation framework for the preparation and appraisal of the project to upgrade, expand and modernize Baku's metro network.
• Accord reflects EIB Global's focus on improving urban mobility and reducing greenhouse gas emissions in line with EU priorities.

Azerbaijan is planning to upgrade and expand the metro system in its capital, Baku. The European Investment Bank's global arm (EIB Global) will support Azerbaijan in preparation of the project, highlighting the EU's commitment to more efficient and sustainable urban transport worldwide.

EIB Global and Ministry of Digital Development and Transport of Azerbaijan signed a Memorandum of Understanding (MoU) today, during the COP29 United Nations Climate Change Conference in Baku. Under the terms of the MoU, both sides will work together for advancing with the preparation and full appraisal of the project to upgrade, expand and modernize Baku's metro network.

Baku's metro network, which dates to 1967 when Azerbaijan was part of the Soviet Union, transports around 620,000-630,000 people a day. It is Azerbaijan's only metro, and the planned revamp and enlargement are meant to increase the number of riders and reduce car congestion in Baku, which has a population of almost 2.4 million.

"This MoU marks a key step in our shared vision for a greener, more sustainable Baku, following the fruitful meeting I had with Minister Nabiyev," said EIB Vice-President Teresa Czerwińska, who oversees EIB operations in Azerbaijan and has finalised the discussions for this cooperation. "The EIB will support the Ministry of Digital Development and Transport in preparing and developing an investment project that will decrease greenhouse gas emissions and improve the quality of public transport in the city."

As the world's largest international public bank and a leading financier of climate-action projects around the world, EIB Global is committed to supporting investments that align with the goals of the UN Paris Agreement. The planned project for the update of Baku metro system is expected to bring significant improvements in urban mobility and reinforce broader efforts to fight climate change and prevent pollution.

Director-General for Neighbourhood and Enlargement Negotiations at the European Commission, Gert Jan Koopman, stated, "The expanded Baku Metro will have a positive impact on the environment in the city, as well as on the lives of its inhabitants by making it easier and faster to get around Baku. I would like to congratulate the EIB and Azerbaijan on the signature of this Memorandum of Understanding, and I look forward to the realisation of this important investment."

"Within the framework of the Baku Urban Mobility Program, work is being done to promote micromobility means and build infrastructure. The micromobility lanes have been extended to about 32 kilometres and the network coverage is expected to increase. The development of the Baku Metro is also a key component of the Baku Urban Mobility Program. This project includes the construction of nine new stations and the enhancement of existing infrastructure to improve the accessibility and quality of metro transportation. These improvements aim to encourage a shift from private car usage to public transport, helping to reduce travel times for citizens and positively impact the city's environment," said Azerbaijani Minister of Digital Development and Transport Rashad Nabiyev.

The MoU is aligned with the European Union (EU)'s Global Gateway initiative, which addresses a global investment gap in sustainable infrastructure by promoting high-standard, transparent projects. It also supports one of the flagship initiatives for Azerbaijan under the EU's Economic and Investment Plan focusing on "sustainable infrastructure and solutions for smarter, greener cities."

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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