Baku, November 14, 2024: The Central Bank of the Republic of Azerbaijan, in partnership with the International Finance Corporation (IFC) through its Sustainable Banking and Finance Network (SBFN), the International Platform on Sustainable Finance (IPSF), the United Nations Development Programme (UNDP), and with the support of the United Nations Environment Programme Finance Initiative (UNEP FI) has launched the “Roadmap for Advancing Interoperability and Comparability of Sustainable Finance Taxonomies.” The Roadmap was officially unveiled during COP29’s Finance, Investment, and Trade Day at a high level event titled “Advancing Sustainable Finance across the Globe: Roadmap towards Interoperability and Comparability of Sustainable Finance Taxonomies.”

“Looking beyond COP29, the Central Bank envisions a proactive role in implementing this Roadmap. We are committed to leading the implementation process and monitoring the progress. Together with strategic partners, we will strive to coordinate all efforts for the implementation of the Roadmap”, emphasized Taleh Kazimov, Governor of the Central Bank of Azerbaijan.

The roadmap addresses the pressing need for a harmonized global approach to sustainable finance, aligning with the Paris Agreement’s climate goals. It provides a framework for improving cross-border compatibility of sustainable finance taxonomies—tools essential for directing capital toward projects with significant environmental and social impact.

“Aligning green taxonomies will create a more efficient global market for sustainable finance, allowing capital to flow freely to where it's needed most and benefiting both developed and emerging markets. IFC and the Secretariat of the Sustainable Banking and Finance Network are fully committed to this mission,” said IFC Managing Director Makhtar Diop.

The event featured a panel discussion moderated by Emiliya Mychasuk, Climate Editor at the Financial Times, focusing on the rapid evolution of sustainable finance taxonomies across various jurisdictions and the significance of unified standards to prevent market fragmentation.

Esteemed panelists - including Abdallah Al Dardari, Assistant Secretary-General and Director of the Regional Bureau for Arab States at United Nations Development Programme (UNDP), Jan Dusik, Deputy Director-General of the Directorate-General for Climate Action at the European Commission, Eric Usher, Head of United Nations Environment Programme Finance Initiative (UNEP FI), Vera Economou, Sustainable Finance Topic Lead at Raiffeisen Bank International, and Sean Kidney, Co-founder and CEO of the Climate Bonds Initiative - shared insights on how streamlined, coordinated actions can drive transparency, consistency, and accelerated capital flows toward sustainable initiatives.

Alfonso García Mora, IFC Regional Vice President for Europe, Latin America, and the Caribbean and Chair of SBFN, also called for strengthened action against climate change.

The Roadmap outlines three core elements to facilitate interoperability:
1. Defining Core Taxonomy Activities: Identifying essential sectors and activities for Emerging Markets and Developing Economies (EMDEs) with a shared classification system.
2. Technical Approaches for Consistent Alignment: Creating standardized alignment approaches for taxonomy principles, including environmental, social, and governance (ESG) guidelines.
3. Supporting Transition Finance: Setting guidelines for transition activities that enable decarbonization and sustainability in high-emission sectors.

This Roadmap sends a powerful message from Baku: a pathway for global alignment and interoperability in sustainable finance taxonomies, ultimately empowering investors, governments, and institutions to mobilize capital effectively for climate action across borders.

For more information on the roadmap visit: 

Roadmap for Advancing Interoperability and Comparability of Sustainable Finance Taxonomies

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