Memorandum signed in Bishkek on the establishment of the Turkic Green Finance Council with the Secretariat based at AIFC

On 6 November, during the 11th Summit of the Organisation of Turkic States (OTS), a Memorandum was signed by five member countries to establish the Turkic Green Finance Council.

The initiative to create the Council was proposed by the President of Kazakhstan, K.K. Tokayev, who suggested that the Astana International Financial Centre (AIFC) serve as the Council’s Secretariat.

The Memorandum was signed by representatives from Türkiye, Azerbaijan, Uzbekistan and Kyrgyzstan, with the AIFC Governor Renat Bekturov, signing on behalf of Kazakhstan. Kazakhstan will also serve as the first presiding country of the Council.

The Council’s primary objective is to foster and promote the green and sustainable finance market within the OTS region, with a focus on increasing ESG investments in environmentally friendly projects. The Council’s activities will include providing guidance on the development of strategic documents and taxonomies in green and sustainable finance, implementing ESG reporting for public companies, and facilitating ESG investments. The Council will also work on developing a common portfolio of sustainable finance projects among OTS member states, as well as organising training sessions and regional ESG forums.

The AIFC-based Secretariat will be responsible for supporting the Council in its operations and in the development of key documents.

“The establishment of the Turkic Green Finance Council is a significant step for financial regulators and development institutions in OTS countries, as it fosters the growth of the green and sustainable finance market. We are pleased that the AIFC has been entrusted with a leading role in organising the Council’s activities and advancing financing instruments. Since its inception, the AIFC Green Finance Centre has acted as a development institution in Central Asia, providing comprehensive support to market participants. Notably, 60% of the green bonds and loans in Kazakhstan have been verified by the Centre,” noted AIFC Governor Renat Bekturov.

The AIFC Green Finance Centre plays a key role in promoting sustainable finance in the region and serves as the regional office for the Green Investment Principles under the Belt and Road Initiative in Central Asia. It is the only entity in Central Asia accredited by the Climate Bonds Initiative (CBI) for Climate Bonds Standard verification and is listed among verifiers by the ICMA (International Capital Markets Association).

The Council is open to joining financial regulators, international and local development institutions, financial sector associations and government agencies responsible for developing green economy, environmental protection, financial policy and debt issuance.

The establishment of the Turkic Green Finance Council, with its Secretariat based at the AIFC, will provide OTS member states with an additional boost for developing green finance and attracting sustainable investments into regional projects.

Reference

The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. www.aifc.kz     

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