Minister: Azerbaijan leads climate finance initiative with new action fund

Azerbaijan has taken the lead in establishing a Climate Finance Action Fund and will allocate the necessary funds to support it, said country's Minister of Finance, Samir Sharifov.

During his speech at the Coalition of Finance Ministers for Climate Action session at COP29, Sharifov explained that the fund would mainly be formed through voluntary contributions from countries and fossil fuel-producing companies, Caliber.Az reports.

"The collected funds will be directed towards financing climate projects, developing renewable energy sources, and supporting research into new climate solutions," he stated.

Sharifov also revealed that Azerbaijan would contribute to targeted funds managed by the International Monetary Fund (IMF), using income generated from the transfer of Special Drawing Rights (SDRs) it holds.

This, he explained, would help mitigate and address the negative impacts of climate change.

An IMF representative present at the session praised Azerbaijan’s initiative, noting that it marked the first of its kind in the Eastern Europe, Central Asia, and Caucasus region.

The IMF commended the move as a significant contribution to global climate action.

By Aghakazim Guliyev