BAKU, Azerbaijan, July 31. The Central Bank of Azerbaijan (CBA) is implementing a roadmap for sustainable development and, as a regulator, is ready to stimulate 'green' lending and minimize risks associated with climate change, CBA Governor Taleh Kazimov told Trend during a press conference.
"This roadmap includes the creation of a taxonomy and the development of regulations for 'green' loans and bonds. The work on 'green' loans and bonds will be completed in September–October 2024. Sustainable development is one of the main priority areas of the CBA's work," he explained.
According to CBA Director General Shahin Mahmudzade, Azerbaijan plans to present its taxonomy project for 'green' operations, which will unite many countries around the world, at COP29.
"Currently, about 50 countries have taxonomies related to 'green' bonds and loans, but there are no connections between these taxonomies, as they are national in nature. Therefore, we had the idea that Azerbaijan should take the initiative in developing taxonomy principles that would unite all countries.
We are working in this direction with two international institutions – the International Platform on Sustainable Finance (IPSF) and the Sustainable Banking & Finance Network (SBFN). We plan to present this taxonomy at COP29," Mahmudzade added.
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 Germany's Berlin, with its secretariat in Bonn.
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