BAKU, Azerbaijan, November 13. The Board of Governors of the Central Bank of Azerbaijan has approved the 'green' taxonomy, Trend reports.
The Board of Governors of the Central Bank of Azerbaijan (CBA) has approved the 'green' taxonomy, Trend reports via the CBA.
The 'green' taxonomy includes a classification system for defining types of 'green' activities, subcategories, and criteria for their technical classification across economic sectors.
Primarily designed for use by financial institutions, it can also be utilized by the private sector to align business activities with the criteria and principles outlined in the taxonomy, develop 'green' and sustainable transition strategies, disclose relevant information, attract green investments, and pursue other related goals.
Moreover, the 'green' taxonomy will contribute to forming a sustainable financial ecosystem in the country, directing both domestic and international resources toward environmentally friendly and sustainable projects, managing climate-related risks, and leveraging opportunities associated with transitioning to a low-carbon economy.
It will also support the operations of enterprises specializing in the export of goods and services.
This initiative will play an important role in adapting the country’s economy to sustainable development imperatives and strengthening the financial sector's role in the shift toward a sustainable economy.
The 'green' taxonomy was developed by a sustainable finance expert group established by the CBA, with the participation of relevant government bodies and support from World Bank experts.
In the preparation process, international best practices and the unique characteristics of the national economy were taken into account.
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