Director general: Green finance taxonomy by CBA was agreed upon with 80 countries

The green finance taxonomy developed by the Central Bank of Azerbaijan (CBA) has been agreed upon with 80 countries worldwide, Shahin Mahmudzada, the Director General of the CBA, said at the Green Finance and Sustainable Development Forum, Report informs.

According to Mahmudzada, currently, 48 countries in the world have taxonomies, and they differ from each other: "For example, something that is green for country x may not be green for country y. This creates difficulties for cross-border transactions at the global level."

Mahmudzada noted that the CBA is cooperating with the International Finance Corporation (IFC) in this regard.

"We are working on developing unified taxonomy principles that unite 110 countries. Currently, agreements have been reached with 80 countries regarding the taxonomy. However, we aim to have at least 110 countries sign the document within the COP29 framework. There can't be a single taxonomy for the whole world. Each country has its own geographical and economic realities. However, one of our main goals is for taxonomies built on similar principles and have the same characteristics to recognize each other at the global level," the CBA director general believes.

He added that the Central Bank intends to digitize, or mathematize, the risks of the economic sector, especially the banking sector: "Based on this, we plan to introduce a certain regulatory framework later. But again, whatever the regulatory framework is, we can talk about any success only if it's in parallel with other state bodies, not just the CBA."