BAKU: Azerbaijan’s financial sector is set to become the primary driver of the nation’s economic growth, particularly in fostering a green economy, stated Azerbaijani Minister of Ecology and Natural Resources and COP29 president-designate Mukhtar Babayev at the “Green finance and sustainable development” forum held in Baku.

According to Trend News Agency, Babayev emphasized the critical role of financing in achieving sustainable development goals. He pointed out that the banking sector will play a pivotal role in directing the future economic trajectory of Azerbaijan. “The financial sector will be the main driver of this work. We have high expectations from banks and financial institutions in terms of creative and diverse offerings,” Babayev said during the forum. He also highlighted the importance of developing new financial instruments and introducing them to the market to support businesses and government agendas.

Furthermore, Babayev reiterated the necessity of expanding innovative solutions for green
finance in Azerbaijan. He underlined that transitioning to a green economy is crucial for the long-term sustainable development of the country. ‘One of the key factors for the development of a green economy is the availability of appropriate financing. It is also important to raise public awareness about green finance and develop a dialogue between all stakeholders,’ added the minister.

In line with these initiatives, the Central Bank of Azerbaijan has begun developing a taxonomy of green financing. This effort involves consultations with government agencies, industry associations, financial institutions, investors, and international organizations on the taxonomy’s initial version. The final draft is expected to be submitted to the government for approval soon.