BAKU: Azerbaijani banks are set to allocate approximately $17.6 billion to green finance by 2059, aiming to contribute significantly to the reduction of carbon emissions in the country, according to Zakir Nuriyev, President of the Azerbaijan Banks Association (ABA). The announcement was made during the “Green finance and sustainable development” forum held in Baku.

According to Trend News Agency, Nuriyev emphasized the role of the banking sector in achieving the national climate goals outlined in the World Bank’s Climate and Development Report. He noted that Azerbaijan needs about $44 billion in investments by 2060 to effectively reduce its carbon emissions. Of this, 60 percent is expected to come from government and public organizations, while the remaining 40 percent should be financed by the private sector, including banks.

Nuriyev detailed the strategies necessary for mobilizing these funds. He highlighted the importance of enhancing cooperation with public and international financial institutions, as w
ell as attracting foreign investors. He also called for an expansion of public-private partnerships and urged banks to support the market with green loans and other sustainable financial instruments.

The commitment of $17.6 billion by Azerbaijani banks represents a major shift towards financing green projects, equating to the current size of the total loan book of the country’s banking sector. This move underscores the critical role financial institutions play in supporting environmental sustainability through strategic investments.