Azerbaijani banks to allocate $1.2 bln to green projects up to 2030 - bank association

BAKU. Nov 14 (Interfax) - Azerbaijani banks plan to allocate loans totaling 2 billion manat or around $1.2 billion at the current exchange rate to implement green projects up to 2030, Azerbaijan Banks Association Chairman Zakir Nuriyev said.

"Azerbaijan's banking sector will allocate 2 billion manat to finance green projects by 2030. These will aid Azerbaijan's transition to a low-carbon and sustainable economy," Nuriyev said at the Global Financial System: Increasing Financing for the Fight against Climate Change event held as part of the COP29 conference on Thursday.

The amount of financing has been agreed between all banks, he said.

Azerbaijani banks will work with international financial institutions to attract additional funds for green projects following the approval of the green taxonomy, he said. The document was approved by the Azerbaijani Central Bank's board on November 7.

"We will work with banks and also with international financial institutions to attract additional funds for green goals. As you know, this is a new phenomenon for our economy," he said.

Other issues are also being discussed, including the issuing of green bonds, he said.

As reported, Nuriyev said last month that Azerbaijan needs to invest $44 billion up to 2060 to cut carbon dioxide emissions in line with World Bank estimates. "The amount considered necessary for green financing in the next 36 years stands at $17.6 billion," he said.

As much as 60% of this investment could be financed through the government and state institutions, and the other 40% by the banks, he said at the time.

The official exchange rate for November 14 is 1.7 manat/$1.