Businesses shun COP29 in Azerbaijan – POLITICO

YEREVAN, AUGUST 14, ARMENPRESS. Businesses are planning to either skip or send smaller delegations to this year’s global COP29 climate summit in Azerbaijan, POLITICO reported.

Below are excerpts from the article. 

According to the report the businesses are “wary of the event’s location and logistics, the oil-evangelizing autocratic regime running it and, perhaps most notably, the prospect of Donald Trump winning the U.S. presidential election just days before the November summit begins.”

 "[There is] not much hype about Azerbaijan from industry,” said one senior UK energy industry official who was granted anonymity to discuss internal plans. The official called it a “poor choice of host (again) that people feel nervous about.”

“Many companies also use the negotiations as a dealmaking opportunity with hoards of elected officials milling about the halls. Environmental groups have criticized the schmoozing — the last two talks, held in Egypt and the United Arab Emirates, drew complaints over fossil fuel influence. And oil-dependent Azerbaijan has openly called for more fossil fuel investment as it prepares to host,” POLITICO wrote.

“Some businesses are staying away because the U.S. election will be held mere days before COP29. A win for Trump would stymie climate ambition from the world’s largest economy and send shockwaves throughout the global system. If elected, Trump has vowed to pull the U.S. out of the Paris climate agreement for a second time.”

Skepticism of Azerbaijan is another factor keeping businesses away from COP29, according to the report.

“Not everyone is convinced Azerbaijan can oversee a quality conference — a perception underscored by the fact Brazil already is lending a hand as it prepares for its high-stakes COP in 2025. The broader uncertainty is rippling through the private sector on both sides of the Atlantic.”

“There’s also a sense that we’re in a bit of an interim period. In many ways the more important COP will be after COP29 in Brazil,” said an American business representative who has attended past COPs and was granted anonymity to discuss their company’s planning process. “Azerbaijan itself is not exactly a poster child for getting off fossil fuels.”

According to POLITICO, some reasons for the pullback are prosaic: There are concerns about getting hotel rooms or even accessing the venue on the outskirts of Baku, the host city. Others are policy-focused: COP29 is expected to be more low-key than Dubai or next year’s talks in Brazil, and companies are already preparing for that event, where nations will finalize climate strategies through 2035.

In terms of the COP29 location, POLITICO wrote that Azerbaijan is heavily dependent on oil and gas revenues to power its economy, creating concerns for companies over being associated with greenwashing. Azerbaijan President Ilham Aliyev has stated plainly that oil- and gas-producing nations like his should continue investing in the sector, clashing with last year’s COP28 outcome in which all nations called for accelerating the transition away from fossil fuels. On top of that, Azerbaijan’s civil service is viewed as less capable than the United Arab Emirates’ government officials. 

Logistical concerns were so prominent that they came up at a June meeting hosted by the U.S. Chamber of Commerce. Ogtay Mammadov, coordinating board member of the COP29 operating company, tried to assuage business leaders, calling the stadium housing the event “well positioned,” close to major transport hubs and only six kilometers outside the city. It’s not convincing doubters. “People don’t trust that it’s going to be as good,” said Frank Maisano, a partner at Bracewell’s Policy Resolution Group, which represents energy industry clients. “People were really focused on Dubai last time. I don’t think they’re as focused on Azerbaijan.”