BAKU: As the host of the COP29 UN climate talks, Azerbaijan will unveil a set of standards this month, agreed upon by over 100 countries, aimed at guiding sustainable investment, announced the country’s central bank governor on Friday.
The need for climate finance taxonomies is critical to ensure that investments effectively reduce emissions; however, investors are often confused by the variety of differing regulations. The 27-member European Union has established one of the most prominent taxonomies, but a UN framework could gain even broader support.
“We have developed new unified taxonomy principles alongside 110 countries. These principles will be utilized to develop national taxonomies, streamlining the process for issuing green loans,” said Central Bank Governor Taleh Kazimov at a news conference.
Azerbaijan will host the UN climate talks from November 11-22. On November 14, Kazimov indicated that Azerbaijan would announce the total funds allocated for green projects through to 2030.
Zakir Nuriyev, head of the Association of Banks of Azerbaijan, noted that this figure would align with the total loan portfolio of Azerbaijani banks, which exceeds $15 billion.
In addition to sustainable financing rules, Governor Kazimov mentioned that the Central Bank is also exploring the introduction of Islamic sukuk bonds. He stated that legislation is in preparation and the bank is evaluating the market to assess demand.
