2024-08-06 19:12:28
Source: Trend International Information Agency
The share of extractive companies that will be included in the Climate Action Fund (CFAF) initiated by Azerbaijan ahead of COP29 is being clarified.
As reported by Day.Az, Deputy Foreign Minister of Azerbaijan, chief negotiator of COP29 Yalcin Rafiyev exclusively told Trend about this.
“We have started negotiations with fossil fuel producing companies in Azerbaijan and around the world on voluntary contributions to the CFAF. In particular, detailed negotiations are already underway with SOCAR and private companies operating in the oil, gas and coal extraction sector. The companies’ shares have not yet been determined, and the situation will become clearer closer to the climate summit,” Rafiyev noted.
According to him, discussions are underway regarding whether these will be one-time amounts from companies or deductions from companies’ income.
On this issue, the COP29 presidency is negotiating with Arab, European and Asian companies, and, according to Rafiyev, companies from 10 countries have already agreed to become CFAF sponsors.
It should be noted that this initiative of Azerbaijan was presented on July 19 in Baku during the presentation of the Action Plan of the COP29 Presidency.
The fund, with an initial budget of one billion US dollars, is being created to help developing countries and to implement nationally determined contributions to reduce greenhouse gas emissions.
“The fund plans to stimulate the private sector to reduce emissions, to assist in research and development to mitigate the effects of climate change. This will be done, for example, through grant programs,” Rafiyev emphasized.
The fund’s work will be structured in such a way that its investments in one volume or another will be returned to it to finance new “green” projects or to help eliminate the consequences of natural disasters and other operational steps.
Another financial initiative of Azerbaijan at COP29 will be the Baku Initiative on Climate Finance, Investment and Trade Dialogue (BICFIT).
“It can act as a platform for long-term dialogue for the international community on the interconnectedness of finance, investment and trade,” the COP29 chief negotiator said.
In addition, there are initiatives to invest in “human capital” and the creation of the “Just Transition Investment Partnership for Skills Development” (which will help implement all global initiatives to combat climate change).
Let us recall that the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) will be held in Baku on November 11-22, 2024.
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