ArmInfo.The AIFC Green Finance Center (Astana International Financial Centre) is considering expanding its operations into the Armenian market, as stated by Manas Gijduaniev, CEO of the AIFC, during a briefing on April 23, in response to a question from an ArmInfo correspondent.
He noted that the Armenian financial sector is of primary interest due to the active development of the ESG (Environmental, Social, and Governance) sector. "There are primarily two drivers here: the capital market and the commodity market," Gijduaniev noted.
In this regard, the head of the Center noted that many international development banks, such as the Eurasian Development Bank, the Asian Development Bank, and the IFC, have a mandate to finance green and sustainable projects. At the same time, such institutions require their clients and borrowers to comply with ESG standards. "Because of this, many banks have moved in this direction to borrow from them. And this pressure is now growing. We see this from international financial institutions and from governments. Many banks are trying to comply. And we have very good expertise in ESG and sustainable finance. I think we could effectively collaborate in Armenia," Gijduaniev said.
Speaking about the commodity market, he mentioned the existing regulations under the Carbon Border Adjustment Mechanism (ED). The head of the Center noted that exporters whose carbon production levels exceed European standards will be required to pay additional taxes. In this regard, companies are increasingly working to reduce their carbon footprint and "green" their technologies and projects. "And we would also like to work with such companies," he stated. Gijduaniev also praised Armenia's green and sustainable finance market, noting that the country has several successful cases in sustainable bonds and is developing a green taxonomy that incorporates green, social, and sustainable agendas.
It should be noted that the Astana International Financial Center (AIFC)) was created to enable the development of green finance in Kazakhstan and Central Asia. The main goal is to bring investments for a sustainable economy through trending financial instruments, such as green and social bonds and loans.
