BAKU, Azerbaijan, September 25. It is planned to raise an initial capital of $1 billion and attract at least ten donor countries to participate in the Climate Finance Action Fund to start its activities, Azerbaijani Economy Minister Mikayil Jabbarov said at an international forum on carbon pricing taking place in Baku, Trend reports.
“In our opinion, this issue will be one of the key topics for discussion within COP29,” the minister emphasized.
Jabbarov mentioned that the main objective of the Climate Finance Action Fund is to increase the contribution of countries with fossil fuel reserves and companies in this sector to the transition to green technologies.
“One of the key initiatives on the COP29 agenda is the establishment of a Climate Finance Action Fund (CFAF). This fund can play an important role in addressing the climate finance gaps that exist today. It is envisioned that the main sources of capital for the fund will come from fossil fuel-producing countries, as well as oil, gas, and coal companies. The main goal of the fund is not only to invest in climate initiatives in developing countries and small island states but also to increase the contribution of countries with fossil fuel reserves and companies of this sector in the transition to “green” technologies,” he stressed.
The minister reminded that Azerbaijan will host such a significant event as the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29).
“Today's event directly corresponds to the objectives of COP29. On the agenda is the assessment of the role of fiscal instruments in the decarbonization process. Discussing this issue with representatives of several authoritative international organizations, as well as delegations of IOTA member countries, will be extremely productive for us,” he added.