(MENAFN- Trend News Agency) RIYADH, Saudi Arabia, April 29. Azerbaijan isgoing to propose creation of a new North-South Financial Mechanismat COP29, Huseyn Huseynov, Head of Sustainable Development andSocial Policy Department at the Ministry of Economy of the Republicof Azerbaijan said during a presentation titled“On the Road toCOP29 - Priorities and Agenda” held as part of the IslamicDevelopment Bank Group (IsDB) annual meetings in Riyadh, Trend reports.
He noted that the North-South Financial Mechanism's role willserve as a bridge between National Oil (Energy) Companies andInternational Oil (Energy) Companies, showcasing collaborativeefforts for global benefit.
Huseynov pointed out that membership opportunities will remainopen to all parties, even those initially hesitant to join theinitiative.
“North-South Financial Mechanism's member parties make transfersto the Fund for the fossil fuels they export and becomeshareholders in exchange for the amount they transfer. The partiesindependently determine the levy according to the volume of fossilfuels (barrels, me, tons) and consequently the amount to betransferred to the Fund,” he explained.
Huseynov noted that main factors distinguishing the North-SouthFinancial Mechanism are the following:
⁃ Financial stability (sustainable capital inflow).
⁃ Part of the funds collected in the fund will be considerednon-profitable capital for the purpose of financing concessionalprojects
(concessional investment).
⁃ The other part is directed to commercially profitableinvestments and will become a source of income for
shareholders.
Azerbaijan will host the 29th session of the Conference of theParties to the UN Framework Convention on Climate Change (COP29) inNovember this year. The decision was made at the plenary meeting ofCOP28 held in Dubai on December 11 last year. Within two weeks,Baku, having become the center of the world, will host about70,000–80,000 foreign guests.
The UN Framework Convention on Climate Change is an agreementsigned at the Rio Earth Summit in June 1992 to prevent dangeroushuman interference in the climate system. The acronym COP(Conference of Parties) stands for Conference of Parties, which isthe highest legislative body overseeing the implementation of theFramework Convention on Climate Change.
The parties to the convention are 198 countries. Unless theparties have decided otherwise, COP is held annually. The first COPevent was held in March 1995 in Germany's Berlin, and itssecretariat is located in Bonn.
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