Azerbaijan is set to make a significant impact on sustainable finance as the host of the 2024 United Nations Climate Change Conference, COP29. Central Bank Governor Taleh Kazimov announced that the country will introduce a comprehensive set of green investment standards developed in collaboration with over 100 nations.
These unified taxonomy principles aim to streamline sustainable investments by providing clear guidelines that effectively reduce emissions. With the European Union's framework already making strides, the introduction of a United Nations taxonomy is expected to gain broader international support, alleviating investor concerns over the current confusion caused by multiple, differing rule books.
Governor Kazimov emphasized, \"We have developed new unified taxonomy principles together with 110 countries. These principles will be applied to develop national taxonomies, simplifying the process of issuing green loans.\" This initiative will facilitate the issuance of green loans, fostering greater investment in environmentally responsible projects.
Azerbaijan will host COP29 from November 11 to 22, and on November 14, it plans to announce the total funds allocated for green projects through 2030. Zakir Nuriyev, head of the Association of Banks of Azerbaijan, revealed that the allocated funds will align with the country's total loan portfolio, which exceeds $15 billion.
In addition to advancing sustainable financing rules, the Central Bank is exploring the introduction of Islamic sukuk bonds, Islamic financial certificates that comply with Sharia law. Governor Kazimov mentioned that legislation is being prepared and the market is being analyzed to gauge demand for these bonds.
The upcoming COP29 in Baku marks a pivotal moment for Azerbaijan as it takes a leadership role in promoting sustainable investment on a global stage.
Reference(s):
Azerbaijan aims to launch green investment rule book at COP29
cgtn.com
