Baku Hosts Forum on Green Finance and Sustainable Development

A forum on "Green Finance and Sustainable Development" began in Baku on Friday. The event, organized by the Central Bank of Azerbaijan (CBA) and the Ministry of Ecology and Natural Resources, focuses on key initiatives, including draft laws and regulations to support green financing in Azerbaijan, financial instruments such as green bonds and subsidies to attract investments, as well as the development of solar and wind energy to reduce carbon emissions. Sustainable agricultural practices and ecosystem restoration projects aimed at improving food security and protecting biodiversity are also central topics of the event.

The forum is attended by representatives from the Central Bank of Azerbaijan, the Ministry of Ecology and Natural Resources, the UN Representative Office in Azerbaijan, and various industry associations, including the Association of Banks, the Microfinance Association, the Association of Stock Market Participants, the Insurers Association, and the Fintech Association.

Speaking at the forum, CBA Chairman Taleh Kazimov emphasized the urgent need to transition to a green economy to mitigate the risks posed by climate change. "The transition to a green economy must be a priority. Without it, long-term sustainable economic growth is unattainable," Kazimov stated.

Kazimov announced that the Central Bank has already developed a roadmap for sustainable financial development, with one of the key initiatives being the creation of a green finance taxonomy. "The taxonomy is ready, with some technical adjustments remaining before it is submitted to the government for approval," he said.

He also noted the establishment of a legal framework for green bonds and highlighted the 18.4% growth in Azerbaijan's loan portfolio over the past three years. Banks are expected to present their green finance commitments ahead of the upcoming COP29 climate conference.