BAKU – Azerbaijan, as the host nation for COP29 U.N. climate talks from Nov. 11-22, is set to introduce a comprehensive green investment rule book developed in collaboration with over 100 countries. Central Bank Governor Taleh Kazimov announced on Friday that these new standards aim to guide sustainable investments worldwide, offering a unified approach to green finance.
The taxonomy, created with the input of 110 countries, will set clear principles for national sustainable financing frameworks. It intends to streamline the process of issuing green loans by standardizing environmental investment criteria, which investors hope will reduce the current confusion caused by varied guidelines across different nations.
Governor Kazimov highlighted that Azerbaijan would announce on Nov. 14 the total funds allocated to green projects through 2030, a figure expected to match the loan portfolios of Azerbaijani banks, which currently total more than $15 billion.
In addition, Azerbaijan’s Central Bank is exploring the introduction of Islamic sukuk bonds to further diversify sustainable financing options. Preparatory legislation is underway, and market analysis is being conducted to assess demand for this financing tool.
The COP29 conference in Baku marks a significant step toward unified climate finance principles, with Azerbaijan poised to play a central role in advancing global green investment standards.