Central Bank of Azerbaijan invests in Green Bond Fund

As part of its foreign exchange reserve diversification strategy, the Central Bank of Azerbaijan (CBA) has invested in the Green Bond Fund, denominated in US dollars and established by the Bank for International Settlements (BIS) in March 2021, CBA Governor Taleh Kazimov said in an article published in the Central Banking online journal, Report informs.

Kazimov highlighted that the fund consists of high‑quality green bonds that meet strict environmental standards defined by the Green Bond Principles (GBP) and the Climate Bonds Initiative's Climate Bond Standard:

"The fund pools central banks' investments in green assets, channeling them into a diversified portfolio that includes sovereign green bonds, bonds issued by international financial institutions, and green bonds with a minimum credit rating of A‑ or equivalent."

Through its participation in the Green Bond Fund, the CBA contributes to financing climate‑friendly and environmentally sustainable projects, supporting the global transition toward a greener and more resilient economy.

Kazimov added that, in parallel, the CBA is actively studying the application of green money policy tools by drawing on the experience of leading central banks:

"Although current conditions are not yet optimal for the full development of these instruments, the CBA is ready to take necessary steps in line with changes in the macroeconomic environment."