Azerbaijan can become regional SDG finance hub, UN official says

Azerbaijan can play a stronger role as a regional hub for investment, trade and sustainable finance because of its strategic location between Central Asia, the Caucasus and the Middle East, UN Resident Coordinator in Azerbaijan Nasar Hayat said.

Speaking at an SDG finance dialogue in Baku, Hayat said developing countries were facing growing difficulties in accessing affordable concessional finance at a time when official development assistance was declining and public budgets were under pressure.

He said the global financing gap for achieving the Sustainable Development Goals was estimated at $4 trillion a year, requiring more innovative and scalable financing tools, including Islamic finance, blended finance, digital finance, capital markets and fintech solutions.

Hayat said Azerbaijan had made progress in implementing its Sustainable Finance Roadmap 2023-2026 and developing instruments such as the National Green Taxonomy, which could help align financial flows with environmental and social priorities.

He said private capital was essential for achieving the SDGs, but mobilising it would require sound regulation, risk-sharing mechanisms and stronger partnerships between governments, development institutions, banks, capital markets and fintech companies.

Hayat added that Azerbaijan’s experience from hosting COP29 and advancing its green economy agenda could be shared with other countries through South-South cooperation.

N.Tebrizli