The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the UN Resident Coordinator Office (RCO) and the Agency for Securities Market Development and Special Registration of Tajikistan, in collaboration with Luxembourg Green Exchange, launched the training "Sustainable Finance Instruments: Training on Thematic Bond Issuance".
Green, social, sustainability and sustainability-linked (GSS+) bonds have emerged as critical instruments to help countries mobilise finance to achieve their Nationally Determined Contributions (NDCs). The Government of Tajikistan has prioritized climate mitigation and adaptation as one of the top priorities in its Strategy for the Development of the Green Economy for 2023-2037. The funding needed to achieve these goals is substantial and requires collective efforts to transform policies and regulations as well as diversify the type of instruments needed to mobilize resources at scale. In Tajikistan's latest nationally determined contribution (NDC), it is estimated that its climate change activities would require total funding of roughly 7 per cent of Tajikistan's GDP. Thematic bonds have the potential to close this gap by mobilizing investment for the public and private sector for green and sustainability initiatives.
In his opening remarks, Majidi Yusuf Khairullo, First Deputy Minister of Finance of Tajikistan highlighted the main priorities in the development of a green capital market in Tajikistan and added that "The training allows participants to navigate the thematic bond issuance process, identify which tools are best suited to their needs, review best practices in terms of taxonomy, principles, external review, and reporting, and examine practical aspects, examples, and regional case studies".
"Through our partnership with the Agency for Securities Market Development and Special Registration of Tajikistan, UN RCO and Luxembourg Green Exchange, we are earnestly working with the Government of Tajikistan to accelerate financing towards climate adaptation and mitigation initiatives in the country" said Hamza Malik, Director of Macroeconomic Policy and Financing for Development, ESCAP. He added, "The Green Bond Issuance training serves as a critical resource to raise awareness about how innovative financing instruments, particularly Green Bonds, can be leveraged to effectively pursue the Sustainable Development Goals and NDC ambitions".
Through a combination of technical presentations and interactive sessions, the two-day training contributes to enhancing the capacity of future bond issuers and relevant government stakeholders involved in the bond issuance process. Training participants included representatives from government institutions, financial market regulators, domestic banks, investors and other financial sector actors.
"Taking advantage of green, social, sustainable, and transition bonds (GSS+) requires clear guidelines, standards, and a regulatory framework to create a favorable environment, as well as capacity-building among relevant participants involved in the bond issuance," highlighted Parvathy Ramaswami, UN Resident Coordinator. It also requires addressing main barriers that issuers of thematic bonds face due to limited awareness and capacities, as well as higher issuance costs.
"In 2024, Tajikistan has been taking steps to establish a green bond market, with focus on the development of its corporate segment. Through our valuable partnership with the UN, we are committed to continue exploring opportunities to mobilize public and private finance towards climate action, including through the issuance of green bonds. I strongly encourage partners to join us in these efforts to boost sustainable finance in Tajikistan in the pursuit of a greener economy," remarked Nigina Abdurakhmonzoda, Director of the Agency for Securities Market Development and Special Registration of the Ministry of Finance of Tajikistan.
ESCAP, UN RCO and the Government of Tajikistan look forward to continue working together and with partners to unlock financing opportunities towards a more sustainable and resilient future in Tajikistan.
