Azerbaijan Central Bank: Global climate financing requires $9 trillion annually

The annual global requirement for climate financing is estimated at approximately $9 trillion, said Chairman of the Central Bank of Azerbaijan (CBA) Taleh Kazimov during the event titled “The Global Financial System: Increasing Funding for Climate Action”.

Kazimov highlighted that a high-level expert group on climate finance has calculated that developing countries will require $2.4 trillion annually to meet the 42% emissions reduction target, Caliber.Az reports.

“In 2023, global greenhouse gas emissions reached 53 gigatonnes of carbon dioxide, the highest recorded to date. To stay on track with the 1.5-degree Celsius target, emissions need to be reduced by 42% by 2030 and by 57% by 2035,” Kazimov said. “Achieving a 42% reduction by 2030 alone underscores the need for approximately $9 trillion annually in global climate financing.”

“This is essential for achieving multiple goals, including the energy transition, adaptation, enhancing resilience, and restoring natural capital,” he emphasised.

The Governor underscored Azerbaijan’s commitment to advancing the “green” transition, incorporating climate issues into its national development strategy.

“One of the five pillars of Azerbaijan’s national socio-economic development priorities up to 2030 is ensuring the ‘green’ growth of our country,” Kazimov noted. “Additionally, President Ilham Aliyev has declared 2024 as the Year of ‘Green World’ Solidarity. This focus on international solidarity highlights the importance of addressing climate change and associated risks. Under the social and economic strategy for 2022-2026, the share of renewable energy in the total energy balance is set to rise by 24% by 2026.”

Kazimov added that COP29 offers an excellent platform for nations to unite with ambition, determination, and cooperation in facing global climate challenges.

“We must ensure that all countries contribute to the support and flow of ‘green’ investments worldwide. Unfortunately, the world has yet to follow the trajectory outlined by the Paris Agreement. The evidence points to continued growth in emissions, which underscores the importance of today’s discussions,” he stressed.

Meanwhile, Zakir Nuriyev, President of the Azerbaijan Banks Association, announced that the country's banking sector will allocate 2 billion manats ($1.18 billion) by 2030 to support sustainable and green projects, aiding Azerbaijan's transition to a low-carbon, resilient economy.

By Aghakazim Guliyev