A robust environment is required to expand climate finance, said Taleh Kazimov, Chairman of the Central Bank of Azerbaijan (CBA), Report informs.
Kazimov made the announcement at the event themed "Promoting Sustainable Finance Worldwide: A Roadmap and Financial Support for Ensuring Alignment" organized as part of COP29 in Baku.
"The key element of this environment is the alignment of sustainable finance frameworks. However, there is a fundamental question, and I am fully confident that the answer is highly relevant for everyone: What exactly do we mean by sustainable investment?" Kazimov noted. He added that a survey conducted among 5,300 leading investors revealed that more than 70% of respondents found the term sustainable investment to be unclear.
Kazimov stressed the critical need for a clear definition of the term sustainability and highlighted the crucial role taxonomies and their alignment will play in identifying and tracking sustainable finance. He also discussed the progress made in developing and aligning taxonomies, mentioning several initiatives prepared at the global level to support the interoperability of sustainable finance taxonomies.
The chairman pointed out that the G20 Sustainable Finance Working Group has developed voluntary principles for aligning sustainable finance frameworks, while the International Platform on Sustainable Finance (IPSF) has worked to identify commonalities and differences in taxonomies.
“Today, I am honored to announce that the CBA has developed a ‘Roadmap for Moving Forward’ in collaboration with the International Finance Corporation (IFC), Sustainable Banking and Finance Network (SBFN), IPSF, and the United Nations Development Programme (UNDP),” he stated.