Central Bank of Azerbaijan Prepares Unified Green Taxonomy and Taxonomy Mapper for the Financial Market

By the next climate summit, COP31 in Antalya, the initiative will present a unified package for the financial market. It will include engagement principles, an annual progress report with implementation examples, a self-assessment methodology for effectiveness, and the Taxonomy Mapper.

The latter will become the main applied product for commercial banks and investors. Using the Taxonomy Mapper, financial institutions will be able to align their loan portfolios and new products with approved international climate goals.

Country and Market

For Azerbaijan and the entire Central Asian region, the lack of a unified and clear taxonomy remains a barrier to attracting green capital. Foreign funds often avoid investing in local environmental projects due to the inability to accurately assess their status and the risk of greenwashing.

Baku’s coordination of the project positions the country as a regional leader in building sustainable finance infrastructure. The initiative is also officially supported by representatives of Brazil (COP30) and Turkey (COP31), ensuring institutional continuity for the project.

Why It Matters

The emergence of standardized tools solves the problem of translating local initiatives into the language of global investors. Banks will be able to clearly label their products, which will simplify the issuance of green bonds and the launch of targeted credit lines for businesses.

A unified coordinate system will force financial institutions to revise their portfolio structures and open access to financing for transition projects that previously remained off the radar of international investors.

What’s Next

Leading up to the COP31 summit, the working group will continue developing the Taxonomy Mapper and the self-assessment methodology. The global agenda is gradually transforming into a set of specific requirements that regulators will begin to impose on the scoring models and reporting of commercial banks.