CBA: Azerbaijan develops roadmap for assessing climate risks

The Central Bank of Azerbaijan (CBA) has prepared a Roadmap on Transition Risk Data to strengthen the assessment of climate-related risks, CBA Governor Taleh Kazimov said in an article published by the Central Banking online journal, Report informs.

Kazimov explained that recognizing the link between emissions, climate change, and the economy encourages a more integrated approach.

"To enhance its capacity for climate risk assessment, the CBA has launched an inter‑agency initiative. With technical support from the International Monetary Fund (IMF), the bank developed the roadmap to address long‑standing data gaps that have posed major challenges. This initiative aims to ensure climate‑related financial risks are evaluated with precision and foresight, and mitigated effectively. It also reflects CBA's commitment to data‑driven risk management and decision‑making," the governor noted.

He added that the improved tools and methodologies will allow financial institutions to manage climate‑related risks more accurately, ultimately supporting financial stability amid growing climate uncertainty.