Baku: The Asian Development Bank (ADB) has approved $1.25 million in technical support for “Azerbaijan Railways” CJSC to develop a decarbonization project, APA-Economics reports citing the bank. ADB will allocate $250,000 of the funding through the Technical Assistance Special Fund and $1 million through the ‘Smart Energy’ Innovation Fund.

According to Azeri-Press News Agency, Azerbaijan aims to establish itself as an international logistics hub by 2025, focusing on enhancing connectivity via the East-West and North-West Corridors. By diversifying trade routes through the Middle Corridor, the country intends to boost economic resilience and regional integration.

The state-owned Azerbaijan Railway Company (ADY) is aligning with international best practices by focusing on decarbonization to support the country’s climate targets. ADY plans to advance its decarbonization agenda by transitioning from diesel to electric traction and increasing the use of renewable electricity, which is expected to enhance operational efficiency and reduce costs. This transition is also anticipated to generate co-benefits such as improved air quality, reduced public health costs, and job creation in the clean energy sector.