IFC Supports Msmes, Low-Income Households, And Climate Fnancing In Azerbaijan (PHOTO)
Date
11/14/2024 7:13:56 AM
(MENAFN- Trend News Agency)
BAKU, Azerbaijan, November 14. IFC is providing
$20 million in local currency financing to bank Respublika, a
leading financial institution in Azerbaijan, to enhance access to
finance for micro, small, and medium enterprises (MSMEs), and
low-income households, and support climate finance initiatives in
the country.
Azerbaijan has pledged to reduce greenhouse gas emissions by 40
percent by 2050, though it now aims to reach this goal by 2035.
Achieving decarbonization and resilience will require substantial
investment, estimated at $44 billion by 2060, or approximately
$1.35 billion per year, according to the World Bank Group Country
Climate and Development Report.
There is a strong need for the financial sector to align more
closely with these financing needs, presenting significant
potential for growth. IFC seeks to showcase the effectiveness of
this type of lending to strengthen the sector's role in driving
sustainable growth. To support these efforts, half of IFC's new
loan to Bank Respublika is earmarked for climate-related projects
by MSMEs and low-income households.
The investment aligns with the World Bank Group's strategy for
Azerbaijan, which prioritizes improving access to finance,
especially for climate-related projects. The country is currently
hosting COP29, highlighting its commitment to advancing climate
finance and promoting sustainability-focused reforms. To guide
sustainable investments and provide a clear framework for aligning
financial activities with environmental goals, with support from
the World Bank Group, the Central Bank of Azerbaijan Republic has
recently developed the first Green Taxonomy in the country.
Azerbaijan became a member of IFC in 1995. Since then, IFC has
invested around $900 million in Azerbaijan, financing nearly 60
projects in financial services, infrastructure, and manufacturing,
as well as advising on improving the business environment,
financial sector development, corporate governance, small and
medium enterprises, and agribusiness.
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