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Akbar Novruz

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Azerbaijan’s banking sector is preparing to commit substantial financial resources to support green transition initiatives, according to Taleh Kazimov, Chairman of the Central Bank of Azerbaijan (CBA), Azernews reports.

This pledge underlines the sector’s dedication to financing projects in renewable energy, sustainable infrastructure, and other environmentally friendly ventures.

Kazimov highlighted the importance of the National Green Taxonomy, which has been developed with technical assistance from World Bank experts and is undergoing final approval procedures. This taxonomy aims to guide investment in sustainable projects, with input from a range of stakeholders, including financial institutions, industry groups, MSMEs, and government agencies.

At COP29, the CBA plans to launch the "Global Taxonomy Adaptation Initiative," furthering its commitment to international climate goals. Additionally, the CBA will organize two thematic events on Finance Day, focusing on increasing climate finance and promoting partnerships between international financial bodies and public and private sector leaders to mobilize resources in line with the Paris Agreement.

Kazimov noted that substantial investments, amounting to $24.7 billion for decarbonization and $19.4 billion for sustainability by 2060, are needed according to the World Bank’s report. He emphasized the critical role of the banking sector in mobilizing these funds and supporting Azerbaijan’s transition to a low-carbon economy, aligning with the country’s updated Nationally Determined Contributions (NDCs).