Green Bonds Pave the Way for a Sustainable Future in Azerbaijan 

Baku, Azerbaijan, November 15, 2024 – Alongside COP29, the UN Sustainable Stock Exchanges Initiative (SSE) and the Baku Stock Exchange co-hosted a pivotal event on Green Bonds in the Azerbaijan Capital Market, highlighting their role in financing sustainable development. The gathering brought together key stakeholders from stock exchanges, governments, and the private sector to explore opportunities and challenges in advancing green finance in Azerbaijan.

The event commenced with a keynote by Sean Kidney, CEO of the Climate Bonds Initiative, known for his ability to inspire action. A dynamic panel discussion followed, featuring prominent experts, including Shahin Mahmudzade, CFA (Azerbaijan Central Bank), David von Eiff (CFA Institute), Kris Nathanail ASCI EMBA (IOSCO), Vugar Namazov, PMP (Unicapital Investment Company), Sevinj Abdullayeva (Nobel Energy), and Ralitza Germanova (IFC). Topics included ESG reporting frameworks, Azerbaijan’s newly approved green taxonomy—developed with IFC support—and the evolving landscape of green bonds.

Key Takeaways: 

  • Localized Standards: Defining "sustainable" in a local context with clear policies is crucial for guiding sustainable finance. 
  • Capacity Building: Regulators, financial institutions, and companies must enhance skills to foster a supportive green finance ecosystem. 
  • Innovation in Action: Tools like tailored taxonomies and digital platforms, such as IFC’s Beyond the Balance Sheet, can help emerging markets accelerate sustainable finance. 
  • Collaboration is Key: Partnerships between development institutions, stock exchanges, and the private sector are essential for unlocking green financing.

The event underscored the importance of continued IFC support in advancing sustainability disclosure and capacity building. The Baku Stock Exchange and Azerbaijan Central Bank expressed gratitude for IFC’s assistance in developing the green taxonomy and their commitment to fostering a robust green bond market in Azerbaijan.

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