SC 119662 REG: Transition to Green and Inclusive Growth for Central Asian Economies

The project aims to prepare a report and presentation taking stock of the ongoing efforts towards green growth and the opportunities challenges and options for Central Asian states, with focus on Azerbaijan and 2 other countries, as they moves towards a net zero economy. 1) An overview of ongoing efforts for low-carbon transition: a) outline policy pledges, commitments, and trajectories (e.g. estimated peaking/turning point) during net zero transition; b) review currently implemented environmental and economic policies to reduce emission and facilitate low-carbon transition along different policy categories ( e.g. natural capital, agriculture & ecosystem services; infrastructure); c) compare existing policy exercises (a) & b)) to other regions of the world, particularly advanced economies. Is the country on time or behind the curve? d) discuss policy options that the country needs to implement to achieve committed NDCs in the short run and a timely yet orderly net zero transition, and how this policy options may vary with other CIS countries. 2) Outline opportunities, challenges, and policy options for low carbon transition: a) growth opportunities (capital input/efficiency/innovation) and co-benefits (environmental and social welfare like jobs, health, resilience) of the low carbon transition, as well as b) salient challenges that the country may face during the low-carbon transition, for example, skills, strategical, technological, financial, institutional, social, and other constraints; c) discuss policy options to promote the opportunities (for example to support green industries, private investments, and technology advances) and address related challenges and mitigate costs ( for example, investment gap, workforce relocation, efficiency loss, social welfare); d) analyze how these proposed policies may vary across economic and development profiles in developing Asia. e) compare green growth with at least 2 other regional neighbors