Azerbaijan plans to introduce a green investment guideline at COP29

By Farah Garayeva
November 1, 2024 23:50
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Reuters

Azerbaijan will unveil a new set of sustainable investment standards at the COP29 U.N. climate talks, with support from over 100 countries. The Central Bank aims to simplify green finance and announce funding commitments for green projects by 2030.

Azerbaijan, as the upcoming host of COP29 U.N. climate talks, will unveil a new global framework for sustainable investments this month, according to Central Bank Governor Taleh Kazimov.

Developed in collaboration with over 100 countries, the standards aim to provide consistent guidelines for climate finance, addressing concerns over the complexity caused by differing rules.

While the European Union has already introduced a comprehensive taxonomy, a U.N.-endorsed framework could attract even wider international support. "Working with 110 countries, we’ve established unified principles that will aid nations in developing their own green finance taxonomies, simplifying green loan issuance," Kazimov stated.

On November 14, Azerbaijan will announce its planned investments in green projects through 2030. Zakir Nuriyev, head of the Association of Banks of Azerbaijan, noted that this amount would reflect the nation’s total bank loan portfolio, currently exceeding $15 billion.

Kazimov added that the Central Bank is considering Islamic sukuk bonds as another financing option for sustainability projects. Legislation is in the works, and the bank is assessing market demand to support this initiative.

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