As the host of the 29th COP29, Azerbaijan will launch a global green investment rulebook for companies. This rulebook aims to guide sustainable investments with standards agreed upon by more than 100 countries. 

The Central Bank Governor Taleh Kazimov confirmed this initiative, highlighting its role in clarifying the climate finance rules for private equity/credit firms, asset managers, and impact investors, who often face difficulties in investing due to the current patchwork of standards.

Let’s explore the Global Green Investment Rulebook released by Azerbaijan in detail.  

About the Global Green Investment Rulebook

Climate finance taxonomies are needed to ensure investments are effective in reducing emissions, but investors can get confused by a number of differing rulebooks. 

The Global Green Investment Rulebook is a unified set of standards for what constitutes a green investment agreed by more than 100 countries. Its aim is to promote consistent and more transparent investment practices in sustainable development worldwide, reduce greenwashing, and ensure investment genuinely contributes to environmental sustainability. 

Taleh Kazimov, Central Bank Governor, said, “We have developed new unified taxonomy principles together with 110 countries. These principles will be applied in developing national taxonomies, simplifying the process of issuing green loans.”

Key points regarding the Global Green Investment Rulebook 

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  Public funding is expected to be insufficient, which is why the rulebook aims to attract significant private-sector investments by reducing entry barriers and establishing more transparent criteria. 

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  The rulebook will encompass all technologies that contribute to net-zero emissions, including carbon capture and storage (CCS), renewable energy sources, and nuclear energy. 

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  The standards in the rulebook closely align with existing international frameworks, such as the Paris Agreement, to ensure consistency in investments and support global climate targets. 
  
  

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  Given the increasing demand and challenges in making the shift to a sustainable economy in developing countries, special provisions will be provided to achieve green finance. 

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