Central Bank of Azerbaijan and International Finance Corporation held Online Training on Banking Sector Climate Risk Management

18-06-2025

18 June 2025, Baku: The Central Bank of the Republic of Azerbaijan and the International Finance Corporation have organized an online training program on climate risk management.

The training program, which was attended by banking sector representatives, provided extensive information on climate risk management, the development of green and sustainable financial instruments, modern approaches, and applied frameworks.

The first session was dedicated to the topic, "Introduction to Climate Risk Management: Objectives, Benefits, and Frameworks.” It reviewed climate-related financial risks and their impact on the banking and financial sectors. The session also discussed the growing involvement of regulators and supervisory authorities in addressing climate-related challenges. Additionally, information was provided on international best practices and standards for climate risk management and stress testing.

The second session covered the topic of “Managing Physical and Transitional Climate Risks”. It highlighted modern approaches to understanding, mitigating, and assessing climate risks.

Thus, at the end of the program, participants had the opportunity to better understand the impact of climate change and climate-related risks on financial systems and to be better prepared in making strategic decisions against these risks.

In collaboration with international partners, the Central Bank emphasizes the importance of increasing knowledge and experience to effectively combat climate change and promote a green transition in the country by fostering a favorable ecosystem.