The <a href="https://time.news/azerbaijan-to-present-unifying-draft-green-taxonomy-at-cop29-2024-07-31-171947/" title="Azerbaijan to Present Unifying Draft Green Taxonomy at COP29
– 2024-07-31 17:19:47″>Green Taxonomy in Azerbaijan will create a powerful basis for achieving lasting development goals.
As Day.Az reported on Tuesday, the General Director of the Central Bank of Azerbaijan said this Vysal Khalilov during the VIII International Banking forum.
“The Azerbaijani banking sector has committed to provide 2 billion manats to support sustainable development in the fight against climate change. I would especially like to note that in order to successfully achieve these goals, a “green taxonomy” was adopted in our country. “Green taxonomy” is an crucial framework , which allows assessing the environmental impact of investments and directing financial flows to environmentally sustainable projects. This step not only strengthens the environmental responsibility of the banking sector, but also creates a powerful basis for achieving sustainable development goals.
I am confident that our banks will make every effort to support the transition to a green economy, which is one of the main priorities of national development,” said V.Khalilov.
What role does the Green Taxonomy play in attracting foreign investment to Azerbaijan’s enduring initiatives?
Q&A Interview: Understanding the Green Taxonomy in Azerbaijan with Vusal Khalilov
Editor: Welcome, Vusal Khalilov, General Director of the Central Bank of Azerbaijan. It’s a pleasure to have you with us today. Let’s dive right in. Can you explain what the Green Taxonomy is adn its significance in Azerbaijan?
Vusal Khalilov: Thank you for having me.The Green Taxonomy is a crucial framework that allows us to assess the environmental impact of investments and channel financial flows into environmentally sustainable projects. In Azerbaijan, it forms a powerful basis for achieving our lasting advancement goals. This taxonomy helps us clarify which economic activities can be classified as green, thereby promoting clarity and encouraging responsible investment.
Editor: That’s insightful! You mentioned during the VIII International Banking Forum that the Azerbaijani banking sector has committed to providing 2 billion manats to support sustainable development. Could you elaborate on how these funds will be used?
Vusal Khalilov: certainly! The 2 billion manats commitment will be directed towards various initiatives aimed at combating climate change and promoting sustainability. This includes financing renewable energy projects, supporting energy efficiency improvements, and facilitating sustainable agriculture.By investing in these areas, we not only contribute to environmental preservation but also stimulate economic development and job creation within the nation.
Editor: How does the green Taxonomy enhance the environmental responsibility of the banking sector?
Vusal Khalilov: The Green Taxonomy sets clear criteria for what constitutes environmentally sustainable activities. With this framework, banks can make informed lending decisions that prioritize projects with positive environmental impacts. This accountability increases the overall commitment of the banking sector to sustainability and encourages them to integrate environmental considerations into their financial practices. Consequently, we are fostering a culture of environmental responsibility within our financial institutions.
editor: That’s a significant shift in focus! What implications do you foresee for the greater economy in azerbaijan as a result of adopting the Green Taxonomy?
Vusal Khalilov: Adopting the Green Taxonomy will have far-reaching implications for our economy. It will promote sustainable business practices, which can lead to a more resilient economy that is less reliant on fossil fuels. Moreover, as we transition towards a green economy, we can expect to attract international investors interested in sustainable projects. This could ultimately lead to economic diversification and enhance our competitiveness on a global scale.
Editor: What practical advice would you give to businesses and investors in Azerbaijan looking to align with the principles of the Green Taxonomy?
Vusal Khalilov: My advice would be to educate themselves on the criteria established by the Green Taxonomy and assess how their projects fit within this framework. Businesses shoudl innovate to incorporate sustainable practices into their operations, while investors must seek out projects that demonstrate a commitment to environmental sustainability. By doing so, they will not only comply with new regulations but also enhance their marketability and reputation in an increasingly eco-conscious marketplace.
Editor: how can we ensure that the implementation of the Green Taxonomy is effective and benefits all stakeholders involved?
Vusal Khalilov: effective implementation will require collaboration among policymakers, financial institutions, and businesses.Regular monitoring and evaluation of projects will be essential to ensure that they meet the intended environmental criteria. Additionally, fostering ongoing dialog and providing support for capacity building will help stakeholders understand and adapt to the Green Taxonomy. By doing this, we can ensure that the benefits of sustainable development reach all segments of society.
Editor: Thank you,Vusal,for sharing your insights on the Green Taxonomy in Azerbaijan. It’s clear that this initiative has the potential to drive sustainable development and contribute to a greener future for our economy.
Vusal Khalilov: Thank you for the opportunity. I believe that with collective effort,we can significantly enhance sustainability in Azerbaijan and set a strong exmaple for other nations.