PwC: Azerbaijan, Central Asia may more actively use green financial instruments

Azerbaijan and Central Asian countries could more actively utilize green financial instruments, Yermekbay Zhakeyev, PwC's transaction director, said at the Azerbaijan and Central Asia Green Energy Week 202, Report informs.

"At PwC, we are seeing tremendous interest in this topic among our clients, institutions, and governments. Despite the relevance of the issue, the road to full implementation is still long. Green bonds, carbon credits, and ESG frameworks can become powerful tools for further development, but they need to be better integrated and supported to unlock their full potential," Zhakeyev noted.

He emphasized three areas for developing these instruments in the region, including Azerbaijan: first and foremost, making green finance more accessible and scalable.

"Green bonds and loans are already being used in Kazakhstan and Uzbekistan. To scale up their use, we need to make these instruments accessible to SMEs, local banks, and regional projects, simplify issuance procedures, offer tax incentives, and provide technical support for verification and reporting," he added.