Azerbaijan to prepare framework for sovereign green bonds

Azerbaijan’s Ministry of Finance has held the first meeting of a working group tasked with preparing a framework for the issuance of sovereign green bonds, the ministry said.

According to Caliber.Az, the meeting reviewed measures taken to strengthen environmental sustainability, mitigate the impact of climate change and expand the use of green finance instruments.

Anar Karimov, first deputy finance minister and head of the working group, said the development of a green financial infrastructure would lay the groundwork for issuing sovereign green bonds in the future.

Participants discussed international best practice in green bond frameworks, exchanged views on applying the initiative in Azerbaijan, and reviewed the stages of work on issuing sovereign green bonds, as well as key action areas proposed by experts engaged by the Asian Development Bank.

The working group has been tasked with drafting a framework document for Azerbaijan’s sovereign green bonds and defining criteria for selecting environmental projects to be financed through the issuance, the statement said.

By Aghakazim Guliyev