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Global Development 13 Nov 2024 Baku, Azerbaijan
IFC, SBFN and Partners Unveil Roadmap to Enhance Sustainable Finance Taxonomies at COP29 
Picture of IFC, SBFN and Partners Unveil Roadmap to Enhance Sustainable Finance Taxonomies at COP29 

Baku, November 14, 2024 – The International Finance Corporation (IFC) through its Sustainable Banking and Finance Network (SBFN) in partnership with the Central Bank of the Republic of Azerbaijan (CBAR), and in collaboration with the International Platform on Sustainable Finance (IPSF), and the United Nations Development Programme (UNDP), has launched the “Roadmap for Advancing Interoperability and Comparability of Sustainable Finance Taxonomies.” The Roadmap was officially unveiled during COP29’s Finance, Investment, and Trade Day at a high level event titled “Advancing Sustainable Finance across the Globe: Roadmap towards Interoperability and Comparability of Sustainable Finance Taxonomies.”  

Looking beyond COP29, the Central Bank envisions a proactive role in implementing this Roadmap. We are committed to leading the implementation process and monitoring the progress. Together with strategic partners, we will strive to coordinate all efforts for the implementation of the Roadmap

Taleh Kazimov
Governor of the Central Bank of Azerbaijan
Picture of Taleh Kazimov

The roadmap addresses the pressing need for a harmonized global approach to sustainable finance, aligning with the Paris Agreement’s climate goals. It provides a framework for improving cross-border compatibility of sustainable finance taxonomies—tools essential for directing capital toward projects with significant environmental and social impact.

Aligning green taxonomies will create a more efficient global market for sustainable finance, allowing capital to flow freely to where it's needed most and benefiting both developed and emerging markets. IFC and the Secretariat of the Sustainable Banking and Finance Network are fully committed to this mission

Makhtar Diop
IFC Managing Director
Picture of Makhtar Diop

The roadmap outlines three core elements to facilitate interoperability:

  1. Defining Core Taxonomy Activities: Identifying essential sectors and activities for Emerging Markets and Developing Economies (EMDEs) with a shared classification system.
  2. Technical Approaches for Consistent Alignment: Creating standardized alignment approaches for taxonomy principles, including environmental, social, and governance (ESG) guidelines.
  3. Supporting Transition Finance: Setting guidelines for transition activities that enable decarbonization and sustainability in high-emission sectors.

This roadmap sends a powerful message from Baku: a pathway for global alignment and interoperability in sustainable finance taxonomies, ultimately empowering investors, governments, and institutions to mobilize capital effectively for climate action across borders.

For more information on the roadmap click here.