Azerbaijan Develops ‘Green Taxonomy’ to Promote Sustainable Finance

Baku, The Gulf Observer: Azerbaijan is taking significant steps toward advancing green finance with the development of a “green taxonomy,” according to Mukhtar Babayev, COP29 President-Designate and Minister of Ecology and Natural Resources. Babayev made the announcement at the conference on “The Role of Small and Medium Business in the Green Economy,” held in Baku.

The green taxonomy will classify economic activities based on environmental standards, providing a framework for enterprises to access greater support for sustainable and environmentally friendly investments. Babayev explained that this initiative is designed to facilitate the green transition, particularly for small and medium enterprises (SMEs).

“This process will allow SMEs to more effectively use available financial resources to finance their green transition,” Babayev said.

The initiative aligns with Azerbaijan’s broader strategy to promote green economy practices and contribute to global efforts in tackling climate change, further positioning the country as a leader in sustainable development within the region.