The European Bank for Reconstruction and Development (EBRD) has highlighted Azerbaijan's potential to emerge as a leader in low-carbon hydrogen production due to its rich renewable energy sources and natural gas reserves. Azerbaijan's geographic advantages, such as access to renewable sources in the Caspian Sea and strategic gas fields like Shah Deniz, enable the production of both green and blue hydrogen. Although water availability remains a challenge, the country can offset this through recycled water strategies. The integration of hydrogen into various sectors and leveraging existing gas infrastructure aligns with Azerbaijan's export strategy and domestic decarbonization objectives. Azerbaijan aims to utilize low-carbon hydrogen in areas like transportation and district heating to support its national climate goals. The Southern Gas Corridor has been identified as a crucial route for exporting hydrogen to Europe, necessitating collaboration among regional partners. The EBRD stresses the importance of a national roadmap and targeted investments to establish Azerbaijan as a significant player in the global hydrogen market. The bank's upcoming assistance will provide the Azerbaijani government with data and recommendations to guide policy measures and unlock the country's hydrogen potential as outlined in COP29.