The Central Bank of Azerbaijan (CBA), with the support of the International Financial Corporation (IFC), is spearheading efforts to establish a unified taxonomy framework for green finance across 110 countries. This initiative was announced by Shahin Mahmudzade, General Director of the CBA, during the "Green Finance and Sustainable Development" forum in Baku, as reported by Azernews.
Mahmudzade highlighted the complexity of existing green finance taxonomies, noting that while 48 countries currently have taxonomies, they vary significantly, creating challenges for international transactions. "What is considered ecological in one country may not be in another, complicating cross-border operations," he explained.
In response to these challenges, the CBA, with IFC backing, aims to develop a standardized taxonomy framework. Mahmudzade revealed that agreements have already been reached with over 80 countries, with plans to unite 110 nations under a common set of principles. "While a single, universal taxonomy is not feasible due to each country's unique geographical and economic factors, our goal is to achieve global recognition of taxonomies with similar guiding principles," he added.
This initiative represents a significant step towards harmonizing green finance practices globally, promoting sustainable development, and facilitating smoother international operations in the ecological finance sector.
Click here to read the original article published by Azernews.
Please give your feedback on this article or share a similar story for publishing by clicking here.
