BDB / Iliya Karanikolov: Effective and innovative solutions are needed to finance the transition to a climate-neutral economy

BDB Executive Officer outlines role of promotional banks in accelerating decarbonisation at COP29 Baku- BDB News Iliya Karanikolov: Effective and innovative solutions are needed to finance the transition to a climate-neutral economy

"National public banks will play a leading role in the mitigation process. They are a powerful tool for governments, allowing them to finance environmental projects while focusing on the non-economic benefits to humanity." This is what Iliya Karanikolov, Executive Officer of the Bulgarian Development Bank, said during the UN Climate Change Conference (COP29) taking place in the capital of Azerbaijan Baku.

The discussion panel on the fourth day of the event, entitled "Multi-Stakeholder Approach to Climate Finance – the Role of Promotional Banks " was opened by Bulgarian Deputy Minister of Innovation and Growth Krasimir Yakimov. The discussion was moderated by Sophia Kassidova, Head of Strategy and Green Policies at BDB.

The event was attended by Rosen Karadimov, Minister of Innovation and Growth, Borislav Bangeev, Chief Corporate Banking Officer and Board Member of UniCredit Bulbank, Dewey Dillander, Senior Director of the World Climate Foundation, Tanja Faller, Director of Technical Assessment and Monitoring at the Council of Europe Development Bank, Mateusz Szczurek, ESG Director General and Board Member of the Polish Development Bank (BGK), Dominykas Tuckus, Senior Advisor at Amber Infrastructure, and Ralitza Germanova, Sustainability Programme Lead at IFC.

The consequences of the climate crises we have witnessed in recent years require effective and innovative solutions to finance the transition to a climate-neutral economy, Iliya Karanikolov stressed. Significant investment from international, domestic, public and private sources is needed to accelerate decarbonisation and deliver economic development benefits.

According to Karanikolov, knowledge dissemination and creating demand for green projects are among the main challenges for policy implementation in the short term. Reducing bureaucracy in dealing with financial instruments, which significantly delays the implementation of environmental objectives, should also be among the priorities.