BAKU, Azerbaijan, November 14. A panel discussion organized by the Central Bank of Azerbaijan (CBA) on the topic "Advancing Sustainable Finance Across the Globe: Roadmap Towards Interoperability and Comparability of Sustainable Finance Taxonomies" has been held within the Finance, Investment, and Trade Day at COP29, Trend reports.
The CBA Governor Taleh Kazimov said that the roadmap for promoting the compatibility and comparability of sustainable finance taxonomies identifies three key elements.
“The roadmap highlights three key elements that are critical for alignment: defining a common set of economic activities - special attention is paid to the decarbonization process, especially for emerging markets and developing economies; developing common technical approaches for alignment with the principles of the taxonomies and core criteria in line with the G20 guidelines; and formulating common approaches to financing the transition through the taxonomies. The need to go beyond 'pure green' investments by supporting transition activities, especially in high-emitting sectors, is recognized,” he explained.
Kazimov also pointed out that the green taxonomy will open up great opportunities for scaling up climate finance, effectively mobilizing capital, and accelerating the transition to a green economy.
“Let me emphasize the progress on green taxonomies at the national level. We have already adopted a green taxonomy with the active participation of various government agencies, financial industry associations, and international financial organizations.
This initiative will open up great opportunities to scale climate finance, effectively mobilize capital, and accelerate the transition to a green economy. I would like to take this opportunity to express my special thanks to the World Bank for its technical assistance in developing the taxonomy," he added.
To note, the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29), which will run until November 22, opened on November 11 at the Baku Olympic Stadium.
The event is the largest organized by Azerbaijan to date and is the first time the region has hosted the event in Azerbaijan. Within COP29, the highest-level event - the summit of world leaders on climate action - was held on November 12–13.
The main expectation from COP29 is to agree on a fair and ambitious New Collective Quantitative Goal (NCQG) on climate finance. The COP29 chairmanship has launched 14 initiatives that include linkages between climate action and the Sustainable Development Goals, including green energy corridors, green energy storage, harmony for climate resilience, clean hydrogen, methane reduction in organic waste, action on green digital technologies, and other topics.
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