The Azerbaijan Carbon Market Workshop, co-organized by the Baku Stock Exchange, the British Embassy Baku, and TheCityUK, was held on 2–3 December 2025 at the Baku Stock Exchange.

The two-day workshop aimed to advance the development of Azerbaijan’s carbon market, enhance institutional understanding of voluntary carbon markets (VCMs), and explore future pathways for interoperability with global carbon markets.

Opening remarks were delivered by Mr. Ruslan Khalilov, CEO of the Baku Stock Exchange; Mr. Fergus Auld OBE, British Ambassador to Azerbaijan; and Mrs. Anna Rogers, Director of International Development at TheCityUK. The workshop sessions were led by Mr. Michael Mathres, Co-Founder of ITMO Ltd and one of the world’s leading experts on compliance carbon markets, Article 6, and the Paris Agreement.

During the opening session, His Excellency Fergus Auld OBE, British Ambassador to Azerbaijan, stated:
“Delivering growth is a UK government priority. That is why British Embassy Baku continues to support partnerships that drive Azerbaijan's economic diversification as part of the UK-Azerbaijan Strategic Partnership.
Co-organized by British Embassy Baku, TheCityUK and Baku Stock Exchange, this workshop demonstrates the immense potential of UK-Azerbaijan commercial partnership to drive decarbonization, the energy transition and shared interests in sustainable growth.”

Throughout the two days, participants were introduced to the foundations of carbon markets, including carbon pricing mechanisms such as carbon taxes and emissions trading schemes, as well as the structure and functioning of compliance markets (UK and EU ETS), voluntary carbon markets, and key international frameworks under the Paris Agreement. The program also provided a detailed overview of the carbon credit lifecycle—from project identification, eligibility and baseline methodologies, and additionality assessments to validation, verification, issuance, and retirement of credits—along with the roles of verifiers, registries, and global standards such as Verra and Gold Standard.

Participants also explored legal and regulatory considerations, focusing on alignment with national environmental, fiscal, and financial legislation, oversight mechanisms, risk management, anti-fraud measures, and the UK’s regulatory experience.

Finally, the workshop highlighted the broader ecosystem needed to support market development, emphasizing the role of financial institutions, project developers, and intermediaries, the importance of building a pipeline of bankable carbon projects, mobilizing private capital through green finance instruments, and strengthening local capacity through the development of verifiers, consultants, and auditors.

The event brought together representatives from across Azerbaijan’s capital markets and served as a significant step toward building the knowledge base and infrastructure required for Azerbaijan’s integration into global carbon markets.