RIYADH, Saudi Arabia, April 29. Azerbaijan is going to propose creation of a new North-South Financial Mechanism at COP29, Huseyn Huseynov, Head of Sustainable Development and Social Policy Department at the Ministry of Economy of the Republic of Azerbaijan said during a presentation titled “On the Road to COP29 - Priorities and Agenda” held as part of the Islamic Development Bank Group (IsDB) annual meetings in Riyadh, Trend reports.
He noted that the North-South Financial Mechanism's role will serve as a bridge between National Oil (Energy) Companies and International Oil (Energy) Companies, showcasing collaborative efforts for global benefit.
Huseynov pointed out that membership opportunities will remain open to all parties, even those initially hesitant to join the initiative.
“North-South Financial Mechanism’s member parties make transfers to the Fund for the fossil fuels they export and become shareholders in exchange for the amount they transfer. The parties independently determine the levy according to the volume of fossil fuels (barrels, me, tons) and consequently the amount to be transferred to the Fund,” he explained.
Huseynov noted that main factors distinguishing the North-South Financial Mechanism are the following:
⁃ Financial stability (sustainable capital inflow).
⁃ Part of the funds collected in the fund will be considered non-profitable capital for the purpose of financing concessional projects
(concessional investment).
⁃ The other part is directed to commercially profitable investments and will become a source of income for
shareholders.
Azerbaijan will host the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) in November this year. The decision was made at the plenary meeting of COP28 held in Dubai on December 11 last year. Within two weeks, Baku, having become the center of the world, will host about 70,000–80,000 foreign guests.
The UN Framework Convention on Climate Change is an agreement signed at the Rio Earth Summit in June 1992 to prevent dangerous human interference in the climate system. The acronym COP (Conference of Parties) stands for Conference of Parties, which is the highest legislative body overseeing the implementation of the Framework Convention on Climate Change.
The parties to the convention are 198 countries. Unless the parties have decided otherwise, COP is held annually. The first COP event was held in March 1995 in Germany's Berlin, and its secretariat is located in Bonn.