Central Bank prepares 'green financial taxonomy' ahead of COP29, says Chairman

The Central Bank of Azerbaijan is preparing to introduce a "green financial taxonomy" before COP29, marking a significant step toward aligning the financial sector with international sustainability standards, Azernews reports.

Speaking at Baku Climate Action Week, Chairman of the Central Bank Taleh Kazimov highlighted both the challenges and opportunities that the financial sector faces amid the green transition.

"We need to find ways that will help economic growth and development, not only for Azerbaijan, but for the entire global growth. We understand the responsibility that falls on us, the green transition," Kazimov stated. He emphasized the importance of balancing financial stability with the growing risks related to climate change, noting that the sector must adapt to manage these challenges effectively.

Kazimov also discussed the importance of supporting the financial sector at COP29, underscoring previous efforts to create a sustainable financial roadmap. "One of the most important initiatives we started was the formulation and application of the 'green finance taxonomy.' We are preparing to implement it in the market before COP29," he added.

The "green financial taxonomy" is intended to help financial institutions in Azerbaijan align with international financial standards, fostering better integration into the global green finance ecosystem. Kazimov emphasized that understanding these international connectors is crucial for both financial stability and the successful implementation of sustainable finance initiatives.