BAKU, Azerbaijan, March 7. The Board of Directors of the Central Bank of Azerbaijan (CBA) approved the "Roadmap for Sustainable Finance for 2022-2026" and the "Banking Standard for Corporate Lending", aimed at stimulating 'green' financing and boosting the bank's participation in regulating energy efficient initiatives, First Deputy Chairman of CBA Rashad Orujov said, Trend reports.
He made the remark during a conference on "Economic reforms and modern challenges for improving the business environment" in Baku.
According to him, on February 15, the Board of Directors of the CBA considered the mentioned roadmap and approved measures.
"To effectively implement and coordinate the measures outlined in the roadmap, an expert group has been formed, representing representatives from the CBA and other institutions, as well as representatives from industry associations and financial institutions. By the decision of the Board of Directors of the CBA on February 28, 2023, the Corporate Credit Banking Standard was approved, introducing changes and additions to a series of the bank's standards related to lending in connection with 'green' financing," he noted.
He said the legal framework for green initiatives has been defined, allowing the Central Bank to take a more active role in regulating and overseeing the implementation of a number of initiatives.
Green finance supports environmentally sustainable projects, aiming to reduce negative environmental impact, lower greenhouse gas emissions, and enhance energy efficiency. It includes investments in renewable energy, sustainable construction, and eco-friendly technology, playing a crucial role amid global climate challenges and increasing public awareness of environmental responsibility.
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