Regulator: Azerbaijan plans to introduce sustainable financing principles for financial institutions by 2024-end

The Central Bank of Azerbaijan (CBA) plans to implement sustainable financing principles for local financial institutions by the end of 2024, CBA Director General Shahin Mahmudzada said on October 18 in Baku at the Green Finance and Sustainable Development Forum, Report informs.

He stated that the Central Bank's policy on sustainable financing is based on four directions.

"The first direction is building the capacity of the country's financial sector. The second direction is addressing regulatory gaps. This involves developing rules, laws, instructions, and adapting them to local conditions. The third direction is developing a taxonomy," he said.

"This usually takes 1-2 years, but we aim to complete the work in an accelerated manner within six months due to the upcoming COP29. The project is currently in its final stage," he emphasized.

The fourth direction is transparency, he added.