8th SDG Dialogue “Innovative Financing for Sustainable Development, Beyond Aid and Traditional ODA”

Excellencies,

Distinguished guests, 

Colleagues,

Ladies and gentlemen,

On behalf of the UN Country Team in Azerbaijan, it is my great pleasure to welcome you all to the Eighth SDG Dialogue, convened under the theme: “Innovative Financing for Sustainable Development, Beyond Aid and Traditional ODA.” 

I would like to extend my sincere appreciation to the National Coordination Council on Sustainable Development of Azerbaijan and the Ministry of Economy of the Republic of Azerbaijan for their strong leadership and continued partnership in advancing the SDG Dialogue series.

I would also like to thank the Islamic Development Bank for its close cooperation and for co-hosting today’s 8th SDG Dialogue. 

Since its launch, the SDG Dialogue series has become a valuable national platform - bringing together government institutions, international partners, the private sector, civil society, and academia - to exchange knowledge and identify practical solutions in support of Azerbaijan’s development priorities under the “Azerbaijan 2030: National Priorities for Socio-Economic Development” and the 2030 Agenda for Sustainable Development. 

Excellencies,

Today’s discussion takes place at a critical moment - both globally and here in Azerbaijan.

Globally, we face a widening financing gap for achieving the SDGs, alongside declining Official Development Assistance and growing pressures on public budgets.  Many developing countries - particularly middle-income countries – are encountering increasing challenges in accessing affordable concessional finance.

This reality was strongly reaffirmed at the Fourth International Conference on Financing for Development held in Sevilla last year, where the international community adopted the Sevilla Commitment - a renewed global framework calling for urgent, scaled-up action to close the estimated USD 4 trillion annual SDG financing gap, address debt vulnerabilities, and reform the international financial architecture to better serve the needs of developing countries.

In Azerbaijan, we see encouraging progress.  Ambitious reforms are underway to strengthen sustainable and inclusive growth. The country has made significant advances in implementing its Sustainable Finance Roadmap (2023–2026) and in developing key instruments such as the national green taxonomy, laying a solid foundation for aligning national financial flows with environmental and social priorities. 

However, given the scale of the global SDG financing gap, business-as-usual approaches will not be sufficient. We must rethink how we mobilize, allocate and leverage financial resources - moving decisively toward more innovative, inclusive, and scalable financing solutions.

This requires collective efforts to mobilize private capital, strengthen domestic resource mobilization, and expand the use of innovative instruments such as Islamic finance, blended finance, digital finance, capital market and fintech solutions.

Azerbaijan’s strategic geographic position - bridging Central Asia, the Caucasus, and the Middle East - offers unique opportunities to serve as a hub for regional investment, trade finance, and cross-border capital flows. 

Distinguished participants,

Private capital is not only complementary - it is essential if we want to achieve the SDGs.

Yet, unlocking its full potential requires enabling policies, sound regulatory frameworks, effective risk-sharing mechanisms, and above all stronger partnerships across sectors and borders. 

International and domestic financial institutions - including both development and commercial banks, capital markets, fintech companies and others - will play a critical role in scaling up domestic resource mobilization for SDG financing. 

Azerbaijan is well positioned to play a leading role in this agenda.  Building on the momentum of successfully hosting COP29 and advancing its transition toward a green economy, I believe the country has generated valuable experience that can be shared with other countries through South-South cooperation.

Today’s SDG Dialogue offers a timely opportunity to connect these national efforts with broader regional and global discussions, particularly within the context of the Islamic Development Bank Group meetings taking place here in Baku. 

The challenge before us is clear: in an environment of declining ODA and constrained public finances, we must accelerate efforts to mobilize innovative financing instruments and initiatives that can catalyze private investments at scale for the SDGs.

But the opportunity is equally compelling: even a small share of global financial assets, if effectively mobilized, could significantly accelerate progress on the SDGs.

In closing, I would like to welcome Dr. Mahmoud Mohieldin, UN Special Envoy on Financing for Sustainable Development, who will deliver the keynote address.  I also look forward to the panel session where we have distinguished speakers from the banking sector, private philanthropy and international development partners.

I encourage all participants to actively engage in today’s discussions and contribute practical, actionable ideas. The concrete recommendations emerging from today will be captured in a policy brief as a key outcome of this SDG Dialogue. 

I wish you all a productive and inspiring session.

Thank you.