Azerbaijan's banking sector commits $1.2 billion to green and sustainable projects

The banking sector in Azerbaijan has made a significant move by allocating $1.2 billion towards green and sustainable projects.

This development was highlighted by Yalcin Rafiyev, COP29's chief negotiator and Deputy Foreign Minister, during a press conference under the COP29 chairmanship, Caliber.Az reports via local media.

Speaking at the event, Rafiyev stated, “Azerbaijan's banking sector has allocated $1.2 billion for green and sustainable projects. The Central Bank of Azerbaijan has introduced a new green taxonomy for sustainable investments. I also want to emphasize Canada’s commitment to climate finance and the creation of a climate peace agency. The Government of Canada has announced a $1.5 billion climate platform to support adaptation. Additionally, nine Canadian foundations and industry organizations have pledged $290 million for climate projects next year.”

Rafiyev also noted that COP29 has aimed to unite various stakeholders to ensure progress in global stocktake results, adding, “We welcome the support of financial institutions of the World Bank in the implementation of renewable hydrogen projects in developing countries.”

Furthermore, the Asian Development Bank announced the allocation of $3.5 billion to support a new initiative addressing the impact of melting glaciers. Meanwhile, additional news emerged about the World Bank's extensive plans to fund climate initiatives.

Jurgen Vögel, the World Bank's Vice President for Sustainable Development, outlined these plans during a COP29 panel discussion titled “The Global Financial System: Scaling Up Climate Finance.” Vögel stated, “The World Bank plans to finance climate projects over the next 10 years to the tune of $150 billion. Developing countries will require $2.4 trillion annually until 2030 to reduce carbon emissions and prepare for future risks.”

Vögel further emphasized the World Bank’s substantial commitment to climate finance, adding, “In 2023, the World Bank has committed $43 billion to developing countries, representing one of the largest climate finance supports compared to other funds.”

By Tamilla Hasanova