The Central Bank of Azerbaijan hopes to unite national and regional taxononimes into a single global framework. © Arno Senoner
The Central Bank of Azerbaijan (CBA) is aiming to develop a framework that would unite green and sustainable finance taxonomies globally ahead of Cop29, according to the central bank’s director Shahin Mahmudzade.
The CBA is working with the International Platform on Sustainable Finance and the Sustainable Banking & Finance Network to create the global taxonomy and plans to present its framework and suggested roadmap at Cop29, which is being held in Azerbaijan in November.
If adopted, it would be taken forward by future Cop presidencies. According to Responsible Investor, CBA will present their proposal to the Brazilian finance ministry next month in Rio de Janeiro, in the hope that Brazil continues the work when it hosts Cop30 in 2025.
The CBA has been exploring how it can contribute to the international sustainable finance market. Mahmudzade told Trends News Agency “that Azerbaijan should take the initiative in developing taxonomy principles that would unite all countries”.
There are around 50 or so taxonomies in the world, most of them on a national scale, which means global corporations often need to manage multiple taxonomies and jurisdictions, sometimes creating confusion and regulatory gaps.
The CBA is also working on its own national green taxonomy, which it hopes to have completed soon. The central bank has accelerated its green initiatives ahead of Cop29, including development of a legal framework for green bonds and creating risk management systems related to sustainable finance.
This page was last updated September 2, 2024
Written by
Moriah Costa is the Editor-in-Chief of Green Central Banking and has over a decade of experience writing about banking and finance. She is an award-winning American journalist based in Paris and has written for major international publications, including Reuters, The Guardian, and S&P Global. Having grown up in water-stressed Arizona, she has always had a strong interest in bringing awareness to climate and environmental issues.
