"Net-Zero" refers to reducing carbon emissions to a small amount of residual emissions that can be absorbed and reliably stored by nature or through other carbon removal measures, leaving zero emissions in the atmosphere. This is critically important to limit global warming to no more than 1.5°C above pre-industrial levels, as outlined in the Paris Agreement . Currently, the Earth's temperature has already risen by approximately 1.1°C compared to the late 19th century, and emissions continue to increase. To keep warming within the 1.5°C threshold, emissions must be reduced by 45% by 2030 and reach net-zero by 2050 . More than 140 countries, including major polluters such as China, the United States, India, and the European Union, have set a target of achieving net-zero emissions, covering about 88% of global emissions .

A significant role is assigned to achieving Azerbaijan’s national emission reduction target, which entails reducing greenhouse gas emissions by 40% by 2050 compared to 1990 levels , as well as strengthening resilience and the ability to adapt to the adverse effects of climate change. Azerbaijan’s selection to host COP29 by unanimous decision of the international community is an important recognition of its efforts, especially in the field of green energy. Azerbaijan sees this as an opportunity to enhance global climate ambitions. The country emphasizes the need for immediate action to prevent exceeding the critical 1.5°C global warming threshold. With each passing year, the window of opportunity narrows, and it is now more important than ever to invest in a sustainable future to avoid irreversible consequences. The primary priority is the rapid and sustainable reduction of emissions to control temperature rise and leave no one behind.

The COP29 presidency plan is built on two key pillars: the first focuses on increasing climate ambitions among all participants, and the second ensures the financing and resources necessary for concrete actions to reduce emissions and adapt to climate change. Azerbaijan is committed to inclusivity and openness, taking into account the views of all stakeholders to achieve collective and equitable solutions.

Azeraluminium fully supports Azerbaijan's climate goals, including the current and future Nationally Determined Contributions (NDC). The company began preparing for decarbonization long before COP29, which is clearly evident in its investment program. Azeraluminium actively promotes sustainable development by forming partnerships and attracting investments in recycling and alternative energy projects.

Azeraluminium LLC is the leading non-ferrous metallurgy company of the Republic of Azerbaijan and the only producer of primary aluminium in the Caucasus. Despite this, the overall production volumes are not significant on a global scale. Nevertheless, the competitiveness of its products is ensured by a high share of value-added products in Azeraluminium LLC’s export portfolio, as well as the high quality of the final products. The Ganja Production Complex was commissioned in January 2012, with a design capacity of 50,000 tons of primary aluminium electrolysis production. Subsequently, in addition to primary aluminium production, facilities for manufacturing aluminium semi-finished products were commissioned: aluminium strip produced using continuous casting technology, as well as cold-rolled aluminium strip in the form of sheets and coils. Thanks to a responsible approach to operations, as well as the optimization and rationalization of electrolysis production, the primary aluminium production capacity has exceeded the design level, reaching 54,000 tons per year.

The head office of Azeraluminium is located in Baku, while production is based in Ganja. The total area of the Ganja Production Complex is 81 hectares, employing 1,100 people. It consists of four production sites, including the electrolysis hall, the anode processes workshop, the continuous casting and rolling workshop, the cold rolling and coating workshop, as well as auxiliary infrastructure facilities. The region utilizes renewable energy sources, with the most significant being the Mingachevir and Shamkir Hydroelectric Power Plants, whose capacity repeatedly exceeds the needs of Azeraluminium LLC.

The company produces primary aluminium, continuous cast coils, and cold-rolled products that meet high international standards, with 95% of the production exported to over 15 countries, including the USA, Europe, Turkey, and the CIS countries. Azeraluminium’s geographic location allows for the rapid delivery of products to clients in various sectors, such as construction, automotive, energy, and packaging.

Azeraluminium announces its plans to achieve net-zero greenhouse gas (GHG) emissions across all its operational activities by 2050. This journey encompasses both direct (Scope 1) and indirect (Scope 2) emissions, reflecting our strategic priority on sustainable development.

Our goal is to reduce direct and indirect emissions by 30% by 2030 and, if possible, completely eliminate them by 2050.

Our commitment to sustainable development is a crucial part of Azeraluminium's growth strategy. We are confident that a combination of innovation, strategic partnerships, and an environmentally responsible approach will not only enable us to achieve our goals but also inspire other market participants to take similar actions. This new phase is a natural continuation of our long-standing efforts to create a more eco-friendly and responsible production process.

Every step on the path to decarbonization must be not only environmentally sustainable but also economically viable. The best way to achieve our emission reduction goals is to launch new projects that align as closely as possible with the principles of environmental responsibility while remaining financially efficient. This approach will allow us not only to improve environmental performance but also to strengthen our financial results. Following the successful launch of these initiatives, we also plan to modernize existing production processes to meet the latest environmental requirements.

Given the extremely high energy consumption in primary aluminium production, our priorities are to create partnerships and attract investments to ensure a full transition of Azeraluminium to alternative energy sources. In the first stage, we plan to build solar power plants with a capacity of 100 MW, which will be an important step towards decarbonization and will meet the company’s current energy needs. However, with the increase in primary aluminium production capacity to 50,000 tons per year and the expansion of continuous casting and rolling facilities, we intend to increase alternative energy production to 250 MW.

Aluminium can be recycled an unlimited number of times, and recycling requires significantly less energy compared to primary metal production via electrolysis. A partnership with foreign companies has been established to develop aluminium recycling capacities. In the near future, we plan to build a recycling plant with a capacity of around 100,000 tons per year. This step, along with the adoption of alternative energy sources, will allow us to produce "green" aluminium and bring us closer to our decarbonization goals.

These two steps—transitioning to alternative energy sources and developing aluminium recycling—are technologically feasible and achievable today. However, further decarbonization will largely depend on technological breakthroughs in primary aluminium production.

One of the most discussed and researched technologies is inert anodes, which replace carbon anode blocks. The combustion of carbon blocks releases the highest amount of Scope 1 greenhouse gases per ton of finished metal. The technology of inert anodes, which are not consumed during electrolysis and do not emit GHGs, would be revolutionary for the industry, provided it becomes economically viable. This technology, first considered in the first half of the 20th century, would significantly reduce carbon emissions in aluminium production. Despite decades of work in this area, the technology has not been applied in industrial production. However, over the past five years, several foreign companies have reported substantial progress and the start of metal production with zero carbon footprint on test electrolysis lines in Russia. Once inert anodes become economically viable and industrially applicable, they will bring us and other companies in the aluminium sector closer to net-zero emissions. Such technological solutions are also crucial for other stages of aluminium production, such as bauxite mining and alumina extraction, which also have a significant carbon footprint.

Finally, artificial intelligence will further optimize industrial processes. In the aluminium industry, AI will play a crucial role in increasing production efficiency, enhancing energy efficiency, and reducing environmental impact, bringing us closer to a more sustainable future.

This document contains statements related to future events and expectations that can be regarded as forward-looking. Forward-looking statements include words such as "anticipates," "intends," "aims," "declares," "possible," "develops," "will achieve," "believes," "could," "estimates," "expects," "forecasts," "goal," "plans," "seeks," "envisions," "should," "will," and other similar expressions. Any statements by Azeraluminium reflecting expectations, assumptions, or forecasts about the future, other than historical facts, are forward-looking.

Forward-looking statements are not guarantees of future results and are subject to various risks, uncertainties, and changes in circumstances that could impact actual outcomes. Although Azeraluminium believes that the expectations reflected in these statements are based on reasonable assumptions, the company cannot guarantee their achievement. Actual results may differ significantly from those projected in these statements due to factors such as economic conditions, legislative changes, technological advancements, unforeseen circumstances, and other risks that are difficult to predict.

Azeraluminium has no obligation to update these forward-looking statements in response to new information or future events, except as required by law.