12:16 - 18.10.2024

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October 18, Fineko/abc.az. Over the next 36 years, Azerbaijani banks should allocate about $17.6 billion to "green" financing.

ABC.AZ reports that the statement was made by Zakir Nuriyev, the president of the Association of Banks of Azerbaijan (ABA), during the forum on the theme "Green Finance & Sustainable Development", held in Baku.

Nuriyev noted that according to the World Bank's Climate & Development Report, in order for Azerbaijan to significantly reduce carbon emissions by 2060, about $44 billion of investments will be required.

He noted that a significant part of these investments can be secured through the participation of the private sector, as well as the banking sector – 60% of investments should come from the government and public organizations, and the remaining 40% can be financed by banks.

Studies show that by 2030, it will take from $8 to $9 trillion per year, and by 2050, from $10 to $11 trillion per year for climate finance.

For “net zero", this amount is about $270 trillion. For comparison, today the global GDP is about $100 trillion.

However, tracked global climate finance exceeded $1 trillion for the first time in 2022 and reached $1.3 trillion.

Various studies show that if current policies continue, warming will exceed 3°C, which will lead to macroeconomic losses of at least 18% of GDP by 2050 and up to 20% by 2100.