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Sustainable finance as a new paradigm focuses on sustainable development goals, including climate change mitigation and adaptation by integrating ESG criteria into financial services. Sustainable finance broadly refers to financing and the associated institutional and market infrastructure that help deliver strong, sustainable and balanced growth aimed at achieving the SDGs.
In recent years, a consensus is emerging in the global business and finance community that climate-related and environmental risks may lead to material financial consequences, which is why the incorporation of these factors into the financial and investment decision making process has become necessary.
Becoming a sustainable, inclusive and green growth country is one of the main strategic goals of the "Socio-Economic Development Strategy for 2022-2026" of the Republic of Azerbaijan. For this purpose, the promotion of environmentally friendly industrialization, the protection of biological diversity, the formation of an efficient waste management system, the increase of the use of renewable energy sources, and the expansion of the use of environmentally friendly vehicles and other green technologies are on the agenda. In this regard, it is considered important to establish a sustainable financial framework that will support sustainable development.
In order to support the strengthening of the role of the financial sector in the sustainable development of the country, the Central Bank of the Republic of Azerbaijan has prepared the "Roadmap for Sustainable Finance: 2023-2026". The purpose of the roadmap is to ensure the resilience of financial institutions against risks arising from climate changes and other ESG factors, as well as to realize the opportunities arising from the transition to a sustainable economy.
The Sustainable Finance Roadmap document can be found at the following link:
