CBA says environmental risk management in banks strengthened

Environmental risk management in Azerbaijan's banking sector has been strengthened as part of the country's efforts to advance sustainable finance, Rustam Tahirov, Director of the Sustainable Finance Department at the Central Bank of Azerbaijan, said at the 8th SDG Dialogue held during the 51st Annual Meeting of the Islamic Development Bank Group in Baku, according to Report.

"A roadmap and a green taxonomy have been adopted, rules for the management of climate and environmental risks in banks have been introduced, and reporting and disclosure requirements have been strengthened," Tahirov said.

According to him, World Bank estimates indicate that Azerbaijan will require additional financing equivalent to approximately 2.3% of GDP annually to achieve net-zero emissions.

"The taxonomy can become an important tool for mobilizing these resources, particularly from the private sector," he added.