Muhammad Nasar Hayat: Azerbaijan strengthening its position in sustainable finance

Azerbaijan continues reforms in the field of sustainable finance, including the development of a National Green Taxonomy and a Sustainable Finance Roadmap for 2023-2026, amid a growing global financing gap for the Sustainable Development Goals (SDGs), Muhammad Nasar Hayat, United Nations Resident Coordinator ad interim in Azerbaijan, said at a panel on innovative financing for sustainable development at the Islamic Development Bank (IDB) Group Annual Meeting in Baku, Report informs.

Hayat emphasized that the global SDG financing system currently faces serious challenges, including declining official development assistance (ODA) and increasing pressure on public budgets. In this context, he believes that a transition to more flexible and innovative sources of capital is crucial.

The expert identified key areas requiring attention: mobilizing private capital, developing domestic financial resources, and expanding the use of Islamic finance instruments, digital technologies, fintech, and capital markets.

"If we want to achieve the Sustainable Development Goals, we need to think beyond traditional approaches and ODA assistance," Hayat noted.

He also added that, thanks to its advantageous geographic location and successful experience hosting prestigious international events such as COP29, Azerbaijan has significant potential to become a regional hub for attracting investment and developing cross-border financial flows.