Azerbaijan advances green transition in financial sector at COP29, says CBA chairman

By Akbar Novruz

At COP29’s "Global Financial System: Increasing Financing for Climate Action" event, Taleh Kazimov, Chairman of the Central Bank of Azerbaijan (CBA), reaffirmed Azerbaijan’s dedication to fostering a green transition, Azernews reports.

"Azerbaijan is committed to developing the green transition," Kazimov emphasized, highlighting the country’s focus on sustainable growth as a cornerstone of its socio-economic strategy.

Kazimov outlined Azerbaijan's goal of achieving green development by 2030, with 2024 designated as the "Year of Solidarity for the Green World" by President Ilham Aliyev. In alignment with the "Socio-economic Development Strategy of the Republic of Azerbaijan in 2022–2026," he noted that renewable energy's share in the national energy mix is set to increase by 24 percent.

"The Central Bank of Azerbaijan adopted the road map of sustainable finance, which includes a number of conditions. First, we will develop a functional ecosystem for green finance. We will ensure the transition of business models and strategies by financial institutions towards sustainable, green finance and the roadmap will support the transition to low carbon emissions," Kazimov stated. He further mentioned that the Central Bank’s roadmap aligns with Azerbaijan's Nationally Determined Contribution (NDC), aiming for a 40 percent reduction in emissions by 2050 compared to 1991.

Kazimov also highlighted the CBA's creation of a national green taxonomy to guide sustainable finance, a framework developed with input from diverse stakeholders, including government ministries, financial associations, and international financial bodies. This taxonomy, he emphasized, is part of a larger effort to "support the transition to low carbon emissions" while bolstering the financial sector’s resilience against climate risks.