Over the next 36 years, Azerbaijani banks should allocate about $17.6 billion.
As Day.Az reports with reference to Trend, this was announced by the President of the Association of Banks of Azerbaijan (ABA) Zakir Nuriev during the forum on “Green Finance and Sustainable Development” held in Baku.
Nuriyev recalled that according to the World Bank’s Climate and Development Report, about $44 billion of investment will be required for Azerbaijan to significantly reduce carbon emissions by 2060.
He noted that a significant portion of this investment could be achieved through the participation of the private sector as well as the banking sector – 60 percent of the investment should come from the government and public organizations, and the remaining 40 percent could be financed by banks.
“To overcome these challenges, it is necessary to support the attraction of investments from both the public and private sectors. It is necessary to strengthen cooperation with state and international financial institutions, as well as with foreign investors. Banks should provide green loans and other climate finance instruments. Partnerships between public and private sectors for green finance must expand, and banks must support the market with green loans and sustainable financial instruments Over the next 36 years, banks must allocate about $17.6 billion to green finance. That is, our banking sector must allocate funds in the next period. , equivalent to the current size of the loan portfolio, exclusively for green projects – this is a serious challenge,” he said.
It should be noted that recently the Chairman of the Central Bank of Azerbaijan, Taleh Kazimo, stated that Azerbaijan supports the development of insurance for renewable energy sources and climate risks.