Azerbaijan is making significant strides towards a greener future with the introduction of the "green taxonomy" by the Central Bank of Azerbaijan. This initiative aims to classify economic activities based on "green standards," enabling businesses to receive increased support for sustainable and eco-friendly investments, according to Mukhtar Babayev, COP29 President-designate and Azerbaijan’s Minister of Ecology and Natural Resources, AzVision.az reports.

Speaking at the conference on "The Role of Small and Medium Businesses in the Green Economy," organized by the Small and Medium Business Development Agency (KOBIA) with the support of the ministries of Economy and Ecology and Natural Resources, Mukhtar Babayev emphasized the importance of this move.

"The taxonomy will create conditions for more effective use of existing financial resources to finance the 'green transition' of SMEs," stated Babayev. He further highlighted the unique opportunities of SMEs in the field of innovation, being more agile and adaptable to new technologies and business models.

Babayev called for increased investments in clean energy sources, energy efficiency, and waste reduction technologies during the transition to a "green economy." He believes these steps will not only reduce the carbon intensity of Azerbaijan's economy but also enhance the competitiveness of SMEs.

The minister also urged large companies to collaborate with SMEs to facilitate their integration into sustainable supply chains. The establishment of "Green SME Resource Centers" is expected to ease the transition of SMEs to more sustainable practices by providing necessary knowledge, advice, and technology.

Babayev emphasized that hosting COP29 strengthens Azerbaijan's position in the global fight against climate change. The main priority of COP29 is climate finance, with the aim of reaching a "New Collective Quantified Goal" in combating climate change.

He pointed out that the conference will also focus on crucial areas such as mitigation, adaptation, and the preparation and submission of "Biennial Transparency Reports", "Nationally Determined Contributions", and "National Adaptation Plans."

The minister underlined Azerbaijan has put forward 14 key initiatives as part of its COP29 Presidency, aiming to propose new approaches and innovative solutions not only at the national level but also globally.

Babayev expressed confidence that these initiatives will further strengthen Azerbaijan's position as a reliable and responsible partner in supporting the global transition to a green economy.

With these ambitious plans and initiatives, Azerbaijan is set to lead the way in the fight against climate change and create a sustainable future for generations to come, he mentioned.

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