On October 18, 2024, the Central Bank of Azerbaijan, key financial sector associations in collaboration with the United Nations Office in Azerbaijan hosted the Green Finance and Sustainability Forum, a flagship event of the “29 Climate Conversations: The Road to COP29” initiative.
This forum brought together high-level stakeholders from government, financial institutions, international organizations, and civil society to discuss strategies to advance green finance as a powerful tool to combat climate change and drive sustainable economic growth.
The event marked a significant milestone on Azerbaijan’s path to hosting COP29 in November 2024, reinforcing the country’s commitment to positioning green finance at the heart of global climate efforts.
In his opening speech, Mr. Taleh Kazimov, Governor of the Central Bank of Azerbaijan, emphasized the role of green finance in shaping a resilient economy. He remarked: “Our strategic initiatives are focused on strengthening the resilience of our economy, promoting green investments, and ensuring that financial institutions are well-prepared to support sustainable practices. We are actively working to improve the regulatory framework and provide essential support to encourage green investments. Our goal is to equip financial institutions with the tools and guidance they need to align their portfolios with sustainability objectives”.
Mr. Mukhtar Babayev, COP29 President-Designate, addressed the participants by emphasizing the urgency of global climate action. He stated, “It is particularly important to strengthen the role of the banking sector in financing the clean energy transition, creating climate-resilient infrastructure, and supporting the development of sustainable agriculture within the framework of transitioning our national economy to a green economy. It is crucial for the banking sector to implement green finance mechanisms that support climate action. The Azerbaijani banking sector must become a key participant in the transition to a sustainable economy by aligning with global trends in green financing. The new financial target should reflect the growing financial needs of developing countries and provide greater and more sustainable resources for financing climate action. The discussions on the New Target are aimed not only at expanding the scale of climate finance but also at taking serious steps in the areas of adaptation, loss, and damage mitigation. Azerbaijan is actively participating in these discussions to achieve ambitious and practical results and is supporting global efforts to ensure that climate finance is accessible, inclusive, and aligned with the needs of vulnerable countries.”
Member of the National Assembly of the Republic of Azerbaijan and Chairman of the Committee on Natural Resources, Energy, and Ecology, Mr. Sadiq Gurbanov, said: “Hosting such a prestigious event as COP29 will ensure that Azerbaijan is recognized on the international stage as a country taking serious steps towards implementing environmental policy. This will allow Azerbaijan to strengthen its position in international relations and trade connections, and to establish new partnerships. Additionally, holding COP29 in Azerbaijan will showcase our country’s activity in expanding the use of green energy in the fight against climate change, as well as its immense potential in renewable energy, to the global community. I hope that the participants of the ‘Green Finance and Sustainable Development Forum’ will continue dialogue and cooperation to achieve a ‘green’ and sustainable future, contributing to the greening of our world.”
Following Sadig Gurbanov, Mr. Nasar Hayat, UN Resident Coordinator a.i., underscored the need for collaboration and innovation in the financial sector, stating, “With COP29 on the horizon, Azerbaijan has an important role to play in leading the global conversation on sustainable finance. By integrating green finance into our national economic strategies, we can unlock new opportunities for innovation, economic growth, and climate action. The actions we take today will lay the foundation for a resilient and prosperous future, not only for Azerbaijan but for the world.”
The forum featured keynote presentations from leaders of major financial associations, including the Azerbaijan Banks Association (ABA), Azerbaijan Insurers Association (AIA), Azerbaijan Micro-finance Association (AMFA), Azerbaijan Fintech Association (AzFina), and Azerbaijan Capital Market Participants Association (ACMPA). These representatives highlighted the importance of advancing green finance within their respective sectors and discussed strategies for leveraging financial innovation to promote sustainable development in Azerbaijan.
Mr. Zakir Nuriyev, President of the Azerbaijan Banks Association, emphasized the critical role of the banking sector in financing sustainable development. He stated: “The final direction, namely the participation of the private sector in green financing, holds even greater importance for financial institutions, especially banks and investment companies. It is known that climate finance flows have been increasing at an accelerating rate over the last decade.
As the Azerbaijan Banks Association (ABA), we actively continue working in this direction and ensure collaboration within the sector by taking joint steps with the banks. The banking sector plays a key role as an essential partner in achieving these goals. The initiatives outlined within the ABA’s ESG (Environmental, Social, and Governance) strategy strengthen the environmental responsibility of the banking sector, supporting these goals. These initiatives, on the one hand, ensure that Azerbaijani banks operate in line with global climate targets, and on the other hand, promote environmental responsibility and sustainability in the economy. As a result, banks not only function as financial institutions but also become key players contributing to the country’s sustainable and low-carbon development.”
The forum highlighted the need for continued dialogue and collaboration, with a focus on practical solutions. As Azerbaijan prepares to host COP29, the event reiterated the significance of green finance in achieving global climate targets.
Looking Forward to COP29
The Green Finance and Sustainability Forum is part of initiative 29 Climate Conversations: The Road to COP29 which United Nations Office in Azerbaijan has launched. By fostering dialogue, collaboration, and actionable strategies, the forum seeks to catalyze transformative change in the financial sector, enabling Azerbaijan to lead by example on the global stage.
