Central Bank of the Republic of Azerbaijan and International Finance Corporation deliver online training for banks on climate risk management

The Central Bank of the Republic of Azerbaijan, in cooperation with the International Finance Corporation, organised an online training programme for bank sector representatives on managing climate risks. The programme covered climate risk management and the development of green and sustainable finance instruments, including current approaches and applied frameworks. The first session focused on the objectives, benefits and frameworks for climate risk management, addressing climate-related financial risks, their effects on banks and the wider financial sector, and the growing role of regulators and supervisors in climate-related challenges. It also presented good practices based on international standards for climate risk management and climate stress testing. The second session examined physical and transition climate risks, highlighting the concept of materiality and up-to-date approaches to risk mitigation and assessment. The central bank highlighted the importance it places on expanding knowledge and experience with international partners to support effective action on climate change and to help form an ecosystem that can advance Azerbaijan’s green transition.