IFC: For investment to lead to sustainable growth, financial system must have favorible environment

The transition to a low-carbon economy creates significant investment opportunities, especially for the private sector, and risk mitigation tools can effectively accelerate private capital mobilization by both domestic and foreign investors, Aliya Azimova, representative of the IFC in Azerbaijan said at the event titled "Raising Ambition, Delivering Action: COP29 Sustainable Business Forum", Report informs.

According to her, international financial organizations can have a big role in this: "Besides, increasing the ability to identify green assets, developing standard criteria for green projects and applying mixed financial instruments can also strengthen longer-term green financing."

Azimova believes that there is a need to develop a supportive regulatory environment and standards in sectors such as transport and construction: "There must be a favorable environment in the financial system to facilitate this transformation and ensure that investments lead to sustainable growth and development."