BAKU, Azerbaijan, May 17. Azerbaijan's commercial banks should envisage 'green' loans in their portfolios and follow climate policy, President of COP29 and Minister of Ecology and Natural Resources of Azerbaijan Mukhtar Babayev said at the “Enhancing Ambition, Enabling Action: COP29 Sustainable Business Forum” event on May 17, Trend reports.
“The banks must implement a well-thought-out climate policy and introduce a climate component and responsibility measures into their portfolios. This is aimed at the long term,” the minister explained.
According to him, to finance green projects, special types of loans and mechanisms are needed, and banks should work in this direction.
“The banks should offer 'green' loans to those projects that are aimed at protecting the environment. They should adopt international practice. Regulators represented by the government and the Central Bank are ready to facilitate this,” Babayev emphasized.
To note, 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.
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