Azerbaijan Sees Great Interest From Global Companies in the Climate Finance Fund

Azerbaijan has attracted significant interest from companies in both developing and developed countries, as well as from state and private sector representatives of at least 10 nations, regarding participation as shareholders in the Climate Finance Action Fund (CFAF), which has a total budget of $1 billion. The CFAF is one of Azerbaijan’s 14 key initiatives unveiled at COP29, Yalchin Rafiev, Azerbaijan's chief negotiator at COP29 and Deputy Foreign Minister, said at a press conference on Thursday.

“We are continuing our efforts to establish the fund and make it operational as soon as possible. Potential donors are showing considerable interest in this Climate Finance Action Fund, an initiative of Azerbaijan’s COP29 presidency. The aim of the fund is to provide an innovative source of financing for countries in need,” Rafiev stated.

He noted that the concept for the CFAF's operations is currently in development.

“To ensure an inclusive process for drafting the fund's concept, we have decided to involve potential donor countries in a working group. This collective working group is focused on preparing the conceptual framework to launch the fund, a complex undertaking,” Rafiev said.

Earlier expectations were that the CFAF would be presented and launched during COP29. Participants include companies and organizations from several resource-rich countries.

Responding to a question from a British journalist about skepticism over Azerbaijan’s "green" actions given its oil industry history, Rafiev emphasized that Azerbaijan is looking towards a sustainable future while building on its oil-based past, taking appropriate steps to align with its vision.

Before the briefing, Rafiev and representatives from UN bodies held debates on the "New Collective Quantified Goal" for global climate finance, noting the absence of a clear, agreed-upon annual target, with discussions centering on several trillion dollars per year.