sustainable development of the banking sector of Azerbaijan will be announced today”/>
Today, a commitment to the sustainable development of the banking sector of Azerbaijan will be announced.
As Day.Az reported on Thursday with reference to Trend, the Chairman of the Central Bank of Azerbaijan said this Taleh Kazimov during a panel discussion on “The Global Financial System: Expanding Climate Action Finance”
“The President of the Association of Banks of Azerbaijan, Zakir Nuriyev, on behalf of the entire banking sector, will announce a commitment to sustainable development after the second meeting today. I am confident that this commitment will mobilize the resources of the banking sector for green and sustainable financing throughout our economy,” he said .
It should be noted that on November 11, the opening of the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) took place at the Baku Olympic Stadium, which will last until November 22. The event is the largest organized by Azerbaijan to date, and is the first time it is being held in the region in Azerbaijan.
As part of COP29, on November 12-13, the highest level event took place – the summit of world leaders on climate action. The key expectation from COP29 is to agree on a fair and ambitious New Collective Quantitative Goal (NCQG) for climate finance.
As well as being a top priority and enabling action, creating climate finance will also contribute to the 1.5°C commitment by bringing everyone together.
The United Nations Framework Convention on Climate Change is an agreement signed at the Earth Summit in Rio de Janeiro in June 1992 to prevent dangerous human interference with the climate system. The abbreviation COP (Conference of Parties) translated from English means “Conference of Parties”, this is the highest legislative body that controls the implementation of the Framework Convention on Climate Change.
There are 198 countries that are parties to the Convention. Unless the parties agree otherwise, the COP is held annually. The first COP event took place in March 1995 in Berlin, and its secretariat is located in Bonn.
What are the benefits of sustainable finance for the banking sector in Azerbaijan?
Interviewer: Welcome to today’s edition of Time.news. We’re excited to have with us an expert in sustainable finance and development, Dr. Amina Rafiq. Dr. Rafiq, thank you for joining us!
Dr. Rafiq: Thank you for having me! I’m excited to discuss such an important topic.
Interviewer: Absolutely! Today, the banking sector of Azerbaijan is set to make a significant announcement regarding sustainable development. Can you give us your thoughts on the importance of this commitment?
Dr. Rafiq: This is a monumental step for Azerbaijan’s banking sector. By committing to sustainable development, they not only address environmental concerns but also enhance their competitiveness in the global financial system. It’s about aligning financial practices with climate goals, which can help in mobilizing both public and private resources towards sustainable projects.
Interviewer: The Chairman of the Central Bank, Taleh Kazimov, spoke at a panel discussion highlighting the relevance of climate action finance. How do you see the role of financial institutions in addressing climate change?
Dr. Rafiq: Financial institutions play a critical role in channeling funds into sustainable initiatives. They can influence corporate behavior by directing investments towards environmentally friendly projects and green technology. Their commitment can serve as a blueprint for economic sustainability that other sectors might follow.
Interviewer: You mentioned that this commitment could mobilize resources. Could you elaborate on what that might look like in practice?
Dr. Rafiq: Certainly! Mobilizing resources involves not only financing green projects but also developing innovative financial products like green bonds, which are specifically designed to fund projects with environmental benefits. This can stimulate investment into clean energy, sustainable agriculture, and infrastructure developments that prioritize sustainability.
Interviewer: Zakir Nuriyev, the President of the Association of Banks of Azerbaijan, will be making this announcement. Why is it significant for a representative from the banking sector to lead this commitment?
Dr. Rafiq: It’s vital because it shows that the financial sector is taking responsibility and leadership in these discussions. When a leader from the banking community steps forward, it signals to other industries that sustainability is not just a regulatory requirement but a strategic priority. It encourages a culture of sustainability that can permeate through the economy.
Interviewer: How do you think this commitment will impact the relationship between banks and their clients in Azerbaijan?
Dr. Rafiq: This commitment could foster a stronger relationship based on shared values. As banks adopt sustainable practices, clients—especially businesses concerned about their carbon footprint—will likely prefer banks that align with their values. This creates opportunities for banks to customize financial services that cater to sustainable projects, which can ultimately lead to new revenue streams.
Interviewer: With the increasing global emphasis on sustainable finance, how might Azerbaijan position itself as a leader in this area?
Dr. Rafiq: Azerbaijan has a unique opportunity to capitalize on this momentum by promoting itself as a hub for sustainable finance in the region. By developing robust policies and frameworks to support green finance and investments, they could attract foreign investments looking for sustainable opportunities. Additionally, partnerships with international financial institutions could enhance their capabilities and visibility.
Interviewer: Such transformative changes take time and commitment. What challenges might Azerbaijan face on this journey towards sustainable banking?
Dr. Rafiq: The challenges include establishing the necessary regulatory frameworks, ensuring transparency in sustainability initiatives, and building capacity within financial institutions to assess and manage environmental risks. However, with a strong commitment from leadership, these challenges can be turned into opportunities for growth and innovation.
Interviewer: Thank you, Dr. Rafiq, for your insights. It’s clear that today’s announcement could mark an exciting new chapter for the banking sector in Azerbaijan and its approach to sustainability.
Dr. Rafiq: Thank you for having me. I look forward to seeing how this commitment unfolds!
Interviewer: And thank you to our audience for joining us today. Stay tuned for more updates on sustainable development initiatives in Azerbaijan and beyond!