BAKU, Azerbaijan, June 16. The Central Bank of
Azerbaijan (CBA) is shaping a sustainable and inclusive financial
ecosystem focused on the development of green and sustainable
finance, as well as the integration of international standards and
partnerships, Shahin Mahmudzade, Executive Director of the CBA,
said, Trend's
correspondent reports from the event.


He made the remark during the 8th SDG Dialogue titled
"Innovative Financing for Sustainable Development, Beyond Aid and
Traditional ODA," held as part of the Annual Meeting of the Islamic
Development Bank (IsDB) Group in Baku.


"The Central Bank of Azerbaijan, as the country's financial
megaregulator, is committed to creating a favorable ecosystem for
sustainable, inclusive, and green finance," he said.


He emphasized that the financial sector plays a pivotal role in
achieving the Sustainable Development Goals (SDGs) and demands more
coordinated action.


"Today, we have a unique opportunity to examine how finance can
act as a catalyst for sustainable and inclusive development. The
urgency of existing challenges requires coordinated action across
all sectors, and finance plays a key role in shaping a sustainable
future," Mahmudzade noted.


He added that the Central Bank of Azerbaijan is implementing a
systemic approach to the development of sustainable finance.







"Our journey toward a sustainable financial system began with
the launch of the Sustainable Finance Roadmap in 2023. This
document outlines the Central Bank's priorities for developing
green finance and engaging with market participants, ensuring that
financial institutions are prepared for the demands of a greener
economy," he said.


The Executive Director also listed the main directions of this
policy, including building the capacity of financial institutions,
closing regulatory gaps, integrating ESG (Environmental, Social,
and Governance) factors into risk management frameworks, and
increasing transparency.


"We have identified four main pillars. First is enhancing the
capacity of financial institutions, which includes not only human
resources but also digital infrastructure. Second is addressing
regulatory gaps. Third is integrating ESG factors into the overall
risk management system. Fourth is ensuring market discipline while
enhancing transparency," Mahmudzade noted.


According to him, developing international coordination in the
field of sustainable finance is another crucial focus area.


"Unlike traditional financial risks, ESG factors are
transboundary and systemic in nature, making them more difficult to
contain within national borders," he emphasized.