• Azerbaijan’s Central Bank Governor announces the launch of a unified taxonomy, developed with 110 countries, to standardize sustainable investments globally.
• The unified standards aim to streamline national green taxonomies, facilitating green loans and improving clarity for investors.
• Azerbaijan to reveal its green investment budget for projects through 2030, set to match the $15 billion loan portfolio of Azerbaijani banks.

Azerbaijan Sets Stage for Unified Green Investment Standards

As the host of COP29, Azerbaijan will unveil a global green investment rulebook aimed at guiding sustainable investments with principles agreed upon by over 100 countries. Central Bank Governor Taleh Kazimov confirmed this initiative, underscoring its role in clarifying climate finance rules for investors who often face confusion from the current patchwork of standards.

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“We have developed new unified taxonomy principles together with 110 countries. These principles will be applied in developing national taxonomies, simplifying the process of issuing green loans,” Kazimov stated at a recent news conference.

This unified taxonomy follows in the steps of the European Union’s model but seeks even broader adoption with backing from the United Nations. The new standards, set to be announced in full at COP29 from Nov. 11-22, could mark a turning point for global green financing consistency.

Azerbaijan’s Commitment to Green Projects

On Nov. 14, Kazimov will disclose Azerbaijan’s green funding allocation through 2030, anticipated to align with the $15 billion loan capacity of the nation’s banks. Zakir Nuriyev, head of the Association of Banks of Azerbaijan, confirmed that this commitment would equate to Azerbaijani banks’ total loan portfolio.

In a further push for sustainable finance, Kazimov noted that the Central Bank is exploring Islamic sukuk bonds, aimed at increasing green investment options. The bank is assessing market demand and developing the necessary legislation to support this new financial product.

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