BSE: Attracting global investors to sustainable finance market requires new tools

New mechanisms should be created to attract international investors to Azerbaijan's sustainable finance market, Aygun Hasanova, Head of Green Finance Products at the Baku Stock Exchange (BSE), stated during Baku Climate Action Week 2026 (BCAW 2026), Report informs.

"Although we are discussing this as a plan for now, I believe it is very important to view sustainable finance not only as part of the environmental agenda but also as a broad economic development opportunity for Azerbaijan. The country is currently in a stage of economic diversification. We are gradually moving from traditional energy‑based models to investments in innovative, green assets and activities. This includes energy efficiency initiatives, green technologies, infrastructure, and renewable energy. Azerbaijan has significant potential in renewable energy. According to the latest official figures, Azerbaijan's economically viable renewable energy potential is 27 gigawatts. For comparison, the country's total energy generation capacity is 10 gigawatts. This means the potential in renewables is three times greater," she said.

Hasanova also pointed out that this essentially represents a future‑oriented investment opportunity: "To take advantage of this opportunity, we must find ways to attract sufficient capital to finance the transition. While banks will always remain an important source of funding, we must also find ways to attract new sources of capital. Capital markets are an effective tool for this, as they mobilize local savings and private capital, directing them into sectors that Azerbaijan wants to develop and that will deliver sustainable results."

The official emphasized that sustainable finance brings clear benefits: "First, it funds new projects that help the economy achieve sustainability goals. Second, it drives the economic diversification I mentioned. Third, it creates incentives for companies to participate in sustainability measures. Fourth, it increases transparency, because companies must disclose certain information to gain investor trust when participating in capital markets. Finally, our horizons expand for attracting international investors. If we can build a reliable market and achieve real sustainability outcomes, this will enable international investors to participate in our market and help it grow further."

She added: "We are working closely with the Central Bank of Azerbaijan and state institutions. Together with clear standards and external evaluations, we recently prepared a Sustainable Finance Roadmap to build a reliable market and lay a solid foundation for the growth of the sustainable finance ecosystem."