Mukhtar Babayev: Climate-related risks will be managed in Azerbaijan

Azerbaijan has defined guidelines for managing climate-related risks, Minister of Ecology and Natural Resources and COP29 President-Designate Mukhtar Babayev said at the Green Finance and Sustainable Development Forum held in Baku, Report informs.

According to Babayev, these instructions support the integration of environmental, social, and governance factors into strategies developed by the Central Bank of Azerbaijan (CBA): "The development of a Green Finance Taxonomy has begun. The CBA has conducted consultations on the initial version of the taxonomy with government agencies, industry associations, financial institutions, investors, and international organizations. In the next stage, it is planned to submit the final draft of the taxonomy to the government for approval."

Babayev stated that at the same time, a legal framework that ensures compliance with globally recognized standards and principles by comprehensively reviewing the advanced international experience in green bonds has been prepared: "The draft has already been submitted to the government."

The minister highlighted that a number of seminars, sessions, and trainings have been organized in cooperation with global financial organizations (World Bank, IFC, EBRD, Ernst & Young, etc.) to strengthen the potential of financial institutions operating in the country.