Amount needed by banks in Azerbaijan for green financing revealed

To rapidly reduce carbon emissions in Azerbaijan by 2060, investments of $44 billion will be required, including about $17.6 billion for green financing that should be allocated through banks, Azerbaijan Banks Association Chairman Zakir Nuriyev said on Friday at the Green Finance and Sustainable Development Forum organized by the Central Bank of Azerbaijan in Baku, Report informs.

Nuriyev noted that the need for such investments for these purposes is reflected in the "Climate and Development Report" of the World Bank Group.

"Part of these investments can be financed with the participation of both the private sector and the banking sector. At the same time, 60% will be allocated by the government and state institutions, and the remaining 40% by banks. This means that over the next 36 years, banks will have to direct about $17.6 billion to green financing," said Nuriyev.

According to him, to achieve these goals, it is necessary to support attracting investments from both the public and private sectors.

"Cooperation with state and international financial institutions, as well as with foreign investors, should be strengthened. Banks should provide green loans and other climate financial instruments. Public-private partnerships for green financing should be expanded, and banks should support the market by offering green loans and sustainable financial instruments," Nuriyev noted.