COP29: Azerbaijan unveils Climate Finance Fund proposal

As part of the COP29 conference in Baku, a high-level event titled “Strengthening a Sustainable Future: Promoting Green Development through Finance” was held, focusing on innovative financial solutions for climate action.

The event was moderated by Thomas Bellon, Director of the UNDP Sustainable Finance Hub, Caliber.Az reports citing local media.

Speakers at the event included Mukhtar Babayev, COP29 President and Minister of Ecology and Natural Resources of Azerbaijan; Samad Bashirli, Deputy Minister of Economy; Yalchin Rafiyev, COP29 Chief Negotiator; and Fatih Birol, Executive Director of the International Energy Agency (IEA).

The event provided a platform for identifying innovative financing solutions to tackle the challenges of climate change and enhance climate resilience across the globe.

During the session, Huseyn Huseynov, Head of the Sustainable Development Department at the Ministry of Economy, presented Azerbaijan’s Climate Finance Fund, a new initiative designed to support climate action investments in developing countries. The fund is expected to raise capital through voluntary contributions from countries and companies with hydrocarbon reserves. The fund will become operational once it secures $1 billion in initial funding and gains support from 10 donor countries.

Participants from various nations and organizations shared insights on climate action and green development, exploring how innovative finance can drive climate-resilient economic growth and sustainability.

Held at Baku Stadium from November 11-22, COP29 is Azerbaijan’s most significant international event to date and the first time the country has hosted a COP conference. The summit kicked off with the signing of the Host Country Agreement and other key documents between the Azerbaijani government and the UN Framework Convention on Climate Change (UNFCCC) Secretariat.

One of the central goals of COP29 is the establishment of a New Collective Quantitative Goal (NCQG) for climate finance. To further this aim, the COP29 presidency has introduced 14 key initiatives designed to integrate climate action with the United Nations Sustainable Development Goals (SDGs). These initiatives cover a broad spectrum of critical areas, including the development of green energy corridors, energy storage solutions, climate resilience strategies, clean hydrogen, methane reduction from organic waste, and the promotion of green digital technologies. A flagship proposal of the conference is the creation of the Climate Finance Action Fund, which is aimed at supporting efforts to limit global warming to 1.5°C.

Throughout the event, Azerbaijan has continued to reaffirm its strong commitment to addressing climate change and promoting environmental protection. The unanimous decision to select Azerbaijan as the host for COP29 reflects the global community’s trust in the country’s leadership on climate-related issues. In his opening remarks, President Ilham Aliyev underscored Azerbaijan’s central role in global climate efforts, emphasizing the nation’s dedication to tackling climate change and advancing sustainable development.

By Tamilla Hasanova