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Azerbaijan Plans to Unveil a Green Investment Guideline Book at COP29.

Azerbaijan, as the host of the COP29 U.N. climate talks, is set to unveil a framework of standards agreed upon by over 100 countries to facilitate sustainable investment, according to the country’s central bank governor. This initiative aims to establish climate finance taxonomies that ensure investments effectively contribute to emission reductions, addressing investor concerns about the confusion arising from multiple rule sets.

The European Union has developed a notable taxonomy, but a U.N. taxonomy could garner even broader support. Central Bank Governor Taleh Kazimov announced that Azerbaijan has created unified taxonomy principles in collaboration with 110 nations, which will assist in the development of national taxonomies and streamline the issuance of green loans.

The U.N. climate talks will take place in Azerbaijan from November 11 to 22. On November 14, Kazimov will disclose the funds allocated for green projects through 2030. Zakir Nuriyev, the head of the Association of Banks of Azerbaijan, indicated that this amount would align with the total loan portfolio of Azerbaijani banks, which exceeds $15 billion.

Furthermore, Governor Kazimov mentioned that the Central Bank is exploring the introduction of Islamic sukuk bonds and is currently preparing the necessary legislation while assessing market demand for such financial instruments.