November 15, 2024
At the upcoming COP29, the spotlight will be firmly on financing mechanisms that can propel developing countries towards sustainable development, with a particular thrust on green finance. For Azerbaijan, a nation historically known for its oil and gas exports, this presents a critical juncture. Faced with the natural risks of climate change, the country is pivoting towards economic diversification and seeking new drivers of growth.
The World Bank underscored that accelerating decarbonization investments aligns with Azerbaijan's interests, echoing the nation's goal to diversify its economy. With ambitious targets to reduce GHG emissions by 40% by 2035 and 70% by 2050, from the 2030 baseline, Azerbaijan is gearing up for a significant financial commitment, estimated at $4.4 billion, much of which is expected to be channeled through green financing from the private sector. The Central Bank of Azerbaijan (CBA) has already launched the Sustainable Finance Action Plan (2022-2025) with ambitious actions, including skill and capacity development in sustainable finance.
Co-hosted by the Capacity-building Alliance of Sustainable Investment (CASI), the Institute of Finance and Sustainability (IFS) and Azerbaijan State University of Economics (UNEC), with support from the Azerbaijan COP29 Presidency and the COP29 High-level Champion for Climate Action, the forum is designed to build capacity on green finance for policy makers, regulators, financial institutions and stakeholders from both Azerbaijan and other countries in Central Asia and Eastern Europe. It aims to provide a platform to exchange ideas on how green finance can be effectively integrated into the local and regional context by considering the specific challenges and potentials of growth.
Taking this opportunity, Azerbaijan also aims to demonstrate its commitment to climate action, showcasing how finance can be a useful tool in the global fight against climate change. It aims to connect the local and regional financial sector with the global agenda of sustainability by inviting high-level speakers from government agencies, regulators, financial institutions and corporates, reiterating the urgency of climate actions, the indispensable role of green finance, and the private-public partnerships in mobilizing the necessary climate finance.
This forum aims to attract 200 participants from Azerbaijan and the region, who will have the opportunity to communicate with expert speakers from all over the world on questions specific to their own context. Registration to this forum is FOR FREE but participants shall be responsible for their own travel and accommodation.
Agenda
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Session 1: Policy Framework for Sustainable Finance
In Azerbaijan and Central Asia, there's a burgeoning movement towards establishing and promoting a "Sustainable Finance Taxonomy." For example, Kazakhstan has seen the Astana International Financial Centre (AIFC) spearhead the design of its green finance system since its inception in 2018, including the Green Bonds Rules and the new Ecological Code of Kazakhstan effective from July 2021 which encompasses a Green Taxonomy. Additionally, Kyrgyzstan signed a green finance cooperation agreement with the AIFC in 2022, aiming to develop a green project taxonomy and ESG standards, with plans to issue green bonds on the Kyrgyz Stock Exchange. This session will shed light on lessons and experience for further scaling up of sustainable finance in the region.
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Session 2: Sustainability Disclosure - Challenges, Benefits and Solutions
One year after the finalization of the ISSB Standards, including IFRS S1 and S2, there have been lots of progresses in sustainability disclosure. However, there are also voices about the challenges and barriers in implementing these standards. Some regulators and investors are concerned with the interoperability among different standards, while some are also less aware of potential benefits of enhancing sustainability disclosure in the capital markets. The G20 has also looking into this topic for many years, specifically focusing on SMEs and EMDEs. With this background, the panel delves into various aspects of sustainability disclosure, focusing on challenges, benefits and solutions associated with disclosure, emphasizing its role in driving responsible business practices and fostering sustainable development.
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Session 3: Financing for Low-GHG Transition
As oil and gas exporters, Azerbaijan and many Central Asian and Eastern European countries are facing natural risks brought about by climate change and are in need of economic diversification and new growth drivers. For example, Azerbaijan has set national targets to reduce greenhouse gas emissions by 40% by 2035 based on 2030 levels, and by 70% by 2050. Achieving these goals requires an estimated investment of $4.4 billion, a large portion of which should come from commercial and private sector financing. Blended finance plays a pivotal role in driving the decarbonization of key infrastructure projects, such as those in energy, transport and buildings. By combining public and private sector funding, blended finance mechanisms can leverage resources more effectively, unlocking investments for sustainable infrastructure development.
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Session 4: Carbon Pricing and Carbon Trading
Carbon pricing and carbon trading are key mechanisms in global efforts to mitigate climate change by reducing greenhouse gas emissions. This mechanism creates financial incentives for emissions reductions while providing flexibility in how companies meet their targets. Both approaches are designed to internalize the environmental cost of carbon emissions and promote investment in clean technologies. However, debates persist around fairness and the effectiveness of implementation of the carbon market, integrity of carbon credits, as well as how these mechanisms can align with global climate goals like the Paris Agreement, while many economies have already made significant progresses. This session invites speakers from around the world to share their perspectives on how carbon pricing and carbon trading can be better designed and implemented to fulfill its goal of carbon emission reductions.
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Partners
Organizer
The Capacity-building Alliance of Sustainable Investment (CASI)
The Capacity-building Alliance of Sustainable Investment (CASI) is an international cooperation platform aiming to deliver higher-quality and higher-impact sustainable finance capacity building services for developing countries, via developing a “global aggregator and distributor of sustainable finance knowledge”. Since its official launch in December 2023, CASI has 50 member institutions including financial companies, financial associations, NGOs, service start-ups and higher education institutions, covering Southeast Asia, Latin America, Africa, the Middle East and other emerging markets.
http://www.casi.net
