On January 22, Rovshan Najaf, the President of the State Oil Company of the Azerbaijan Republic (SOCAR), stated during a panel discussion at the World Economic Forum 2026 (WEF 2026) that understanding how companies can free up capital requires a comprehensive approach across all energy resources. Najaf emphasized that in the context of decarbonization, it is essential to differentiate clearly between technologies. "What worked under the IRA (Inflation Reduction Act) is primarily applicable to wind and solar power, batteries, and electric vehicles. However, even the IRA and other support measures have not yet worked for green hydrogen and green ammonia. Success requires different components," he stated, noting that any initiatives must have a clear commercial justification.

He explained that the majority of funding currently goes to renewable energy, including wind, solar, batteries, and electric vehicles, while carbon capture, green ammonia, green hydrogen, and methane emissions reduction receive significantly less investment because they lack sustainable commercial models. Najaf stressed that economic benefits and access to financing are essential, and innovation combined with capital is necessary to achieve technological breakthroughs, as seen in the cost reductions for solar and wind energy. "Commercial banks don’t finance unprofitable projects," he added.

Najaf further noted that individual companies are willing to take a vanguard role in developing new technologies, but they must prioritize. "In the current environment, looking at the dynamics of the last year, oil and gas are once again becoming key. As CEO, I have to make capital allocation decisions, and, of course, oil and gas remain a priority. In this situation, I have no available funds to invest in non-commercial but potentially breakthrough technologies unless there is external financing for oil and gas projects. At the same time, I cannot attract funds from international financial institutions or most European commercial banks for oil and gas projects, forcing me to rely solely on my own resources. If these funds are allocated to oil and gas, they can no longer be used for hydrogen or green ammonia, even for pilot projects. This is precisely why a comprehensive approach across all energy resources is necessary to understand how to free up capital," he stated.

Najaf also highlighted that decarbonization is losing ground to other sectors competing for investment, particularly high-tech industries with quick and clear returns. "In terms of inter-industry competition, over the past two years, we have seen extremely strong pressure from other sectors. Today, the most attractive sectors for investors are AI and data centers, which consume colossal amounts of electricity. Our calculations and forecasts from two years ago did not take into account such a sharp increase in electricity demand from AI and data centers. As a result, project financing in these sectors is very easy to attract: financial institutions, banks, private and large investors are eager to enter into such deals. In the face of inter-industry competition, decarbonization, in my opinion, is losing out," he stated.

Within the energy sector itself, Najaf noted that capital is directed primarily to segments with guaranteed or predictable cash flows. "Investments are flowing where there’s a clear commercial model, such as power purchase agreements (PPAs). Investments can be made in solar or wind energy, electric vehicles, or batteries—these areas have stable demand and clear project economics. Meanwhile, other decarbonization segments, lacking sufficient commercial appeal from a financial institutions perspective, continue to experience a severe shortage of investment," he added.