IFC rep: Climate financing for low and middle-income countries should be increased fourfold

Climate finance of $1.7-3.4 trillion is needed by 2030 to support climate-related activities in low and middle-income countries, said Aliya Azimova, the International Finance Corporation's (IFC) representative in Azerbaijan, during the 5th Sustainable Development Goals Dialogue in Baku, Report informs.

"However, the current annual climate finance flow to these countries is less than $425 billion. These flows need to increase at least 4-fold by 2030, and more than 80% of this should come from the private sector," Azimova said.

According to her, IFC plans to present a Roadmap for the development of "green buildings" for Azerbaijan before the COP29.

Recalling that the Central Bank of Azerbaijan is developing a green taxonomy in the country, Azimova emphasized that this taxonomy will enable investors like IFC to implement green financing solutions in Azerbaijan.

"We have very little time left to implement climate programs. First of all, we need to increase the number of bank loans and climate projects in developing countries like Azerbaijan. There is sufficient liquidity and funds available globally. However, we need to increase the number and scale of projects requiring blended finance to reduce risks," she noted.