Roadmap for Advancing Interoperability and Comparability of Sustainable Finance Taxonomies
The Sustainable Banking and Finance Network (SBFN) and the Central Bank of the Azerbaijan Republic (CBAR) have co-developed the “Roadmap for Advancing Interoperability and Comparability of Sustainable Finance Taxonomies” in collaboration with the International Platform on Sustainable Finance (IPSF), and the United Nations Development Programme (UNDP).
This Roadmap, unveiled during COP29 in Baku, Azerbaijan, marks the next step in a two-year journey to enhance the interoperability and comparability of sustainable finance taxonomies, in line with the SBFN Toolkit on Sustainable Finance Taxonomies.
Drawing from member discussions at the SBFN 8th Global Meeting in Rio de Janeiro and sessions with CBAR, IPSF, and UNDP, the Roadmap embodies the shared vision and input from SBFN members and international partners.
The roadmap outlines three core elements to facilitate interoperability:
- Defining Core Taxonomy Activities: Identifying essential sectors and activities for EMDEs with a shared classification system.
- Technical Approaches for Consistent Alignment: Developing standardized alignment methods for taxonomy principles, including environmental, social, and governance (ESG) guidelines.
- Supporting Transition Finance: Establishing guidelines for transition activities to facilitate decarbonization and sustainability in high-emission sectors.