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Azerbaijan aims to launch green investment rule book at COP29
Climate finance taxonomies are needed to ensure investments are effective in reducing emissions, but investors are concerned the number of differing rule books causes confusion.
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People walk near the Baku Olympic Stadium, the venue of the United Nations Climate Change Conference, or COP29 in Baku, Azerbaijan on Oct. 18, 2024. (Reuters/Aziz Karimov)
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zerbaijan as host of the upcoming United Nations climate conference, or COP29, will launch this month a set of standards agreed by more than 100 countries to guide sustainable investment, the country's central bank governor said on Friday.
Climate finance taxonomies are needed to ensure investments are effective in reducing emissions, but investors are concerned the number of differing rule books causes confusion.
The 27-member European Union has delivered one of the most significant, but a UN taxonomy could have even wider backing.
"We have developed new unified taxonomy principles together with 110 countries. These principles will be applied in developing national taxonomies, simplifying the process of issuing green loans," Central Bank Governor Taleh Kazimov told a news conference on Friday.
Azerbaijan hosts UN climate talks from Nov. 11 to 22.
On Nov. 14, Kazimov said Azerbaijan would announce the amount of funds it will allocate for green projects until 2030.
Zakir Nuriyev, head of the Association of Banks of Azerbaijan, said the figure would correspond to the total loan portfolio of Azerbaijani banks, which exceeds US$15 billion.
In addition to the rules on sustainable financing, Governor Kazimov said that the Central Bank was considering the introduction of Islamic sukuk bonds.
He said legislation was being prepared and the bank was analyzing the market to see if there was sufficient demand.
