COP29 In Azerbaijan Hashes Out Nuts And Bolts Of Sustainable Financing Development

(MENAFN- Trend News Agency) BAKU, Azerbaijan, November 14. The Central Bank of Azerbaijan, in partnership with the International Finance Corporation (IFC), the Sustainable banking and Finance Network, the International platform for Sustainable Finance, the United Nations Development Programme (UNDP), and with support from the Financial Initiative of the United Nations Environment Programme (UNEP), presented the“Roadmap to Advance Interoperability and Comparability of Sustainable Finance Taxonomies” at COP29, the CBA told Trend .

The roadmap was officially presented at an event titled "Advancing Sustainable Finance across the Globe: Roadmap towards Interoperability and Comparability of Sustainable Finance Taxonomies," organized by the Central Bank and IFC on Financial, Investment, and Trade Day at COP29.

"As the Central Bank, we must actively participate in executing the roadmap. We are resolute in supervising the progression and advancement of this significant undertaking. In collaboration with our key partners, we will concentrate our efforts on executing the roadmap," CBA Chairman Taleh Kazimov said.

The development of the strategic roadmap aligns with the international significance of a cohesive strategy for sustainable finance, tailored to meet the climate objectives outlined in the Paris Agreement. This initiative establishes a robust framework for essential instruments that enhance the interoperability of sustainable finance taxonomies across borders, while strategically channeling investments into initiatives that deliver substantial environmental and social benefits.

"Adopting green taxonomies will create a more efficient global sustainable finance market, direct capital to where it is most needed, and benefit both developed and developing markets. The IFC and the Secretariat of the Sustainable Banking and Finance Network are fully committed to this mission," IFC Executive Director Makhtar Diop said.

A panel discussion moderated by Emilia Michasouk, Climate Editor of the Financial Times, focused on the rapid evolution of sustainable finance taxonomies in various jurisdictions and the importance of unified standards to prevent market fragmentation. Abdullah Al-Dardari, Director of the UNDP Regional Office for Arab States, Jan Dusik, Deputy Director-General of the European Commission's Directorate-General for Climate Action, Eric Usscher, Head of the UNEP Finance Initiative, Vera Economou, Head of Sustainable Finance at Raiffeisen Bank International, and Sean Kidney, CEO and Co-Founder of the Climate Bonds Initiative, discussed how coordinated actions could contribute to transparency, regulatory compliance, and fast capital flow into sustainable initiatives.

In closing, Alfonso García Mora, Vice President of IFC for Europe, Latin America, and the Caribbean, and Chairman of the Sustainable Banking and Finance Network, called for enhanced action in the fight against climate change.

To note, the roadmap highlights three key elements that are critical for alignment: defining a common set of economic activities - special attention is paid to the decarbonization process, especially for emerging markets and developing economies; developing common technical approaches for alignment with the principles of the taxonomies and core criteria in line with the G20 guidelines; and formulating common approaches to financing the transition through the taxonomies.

To access the full Roadmap, please follow this link .

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