BAKU, Azerbaijan, May 17. Preparing for the financial risks associated with the transition to a green economy is essential, Executive Director of the Central Bank of Azerbaijan (CBA) Shahin Mahmudzade said at the Enhancing Ambition, Enabling Action: COP29 Sustainable Business Forum, Trend reports.
“We must be prepared for the financial risks associated with transitioning to a green economy. Climate change impacts, such as floods and droughts, pose significant risks to the financial sector. While these events are unlikely, their occurrence would have a substantial impact on the financial system and the economy,” he emphasized.
Energy, urban development, consumerism, construction, and transportation are the key sources of increased carbon dioxide emissions. These sectors' economic share is rising.
This November, Azerbaijan will host COP29. This decision was made at the COP28 plenary meeting held in Dubai on December 11 last year. Baku will become the center of the world and will receive about 70–80,000 foreign guests.
The United Nations Framework Convention on Climate Change is an agreement signed at the Earth Summit in Rio de Janeiro in June 1992 to prevent dangerous human interference with the climate system. COP - the Conference of the Parties - is the highest legislative body overseeing the implementation of the Framework Convention on Climate Change. There are 198 countries that are parties to the Convention. Unless the parties agree otherwise, the COP is held annually. The first COP event took place in March 1995 in Berlin, and its secretariat is located in Bonn.
Stay up-to-date with more news at Trend News Agency's WhatsApp channel