Ariz Seyidov

THE ROLE OF FINANCIAL POLICY IN ACHIEVING SUSTAINABLE DEVELOPMENT GOALS

Abstract

The Sustainable Development Goals (SDGs) are a highly important concept in the formation of the green economy. Having a broad range of financial resources is of great importance for achieving the SDGs. According to data from the World Bank and the International Monetary Fund, achieving the 17 Sustainable Development Goals requires an increase in development finance. Although the role of finance in achieving the SDGs is indisputable, very few scientific studies have been conducted in this area. The present study seeks to fill this gap.

This research examines the relationship between sustainable finance and the SDGs based on European Union countries that are members of the Organisation for Economic Co-operation and Development (OECD). As a result, it is assumed that the sustainable finance model plays a key role in the implementation of the SDGs (with all SDGs analyzed except SDG 6 and SDG 14 due to the lack of statistical data) and in ensuring that social and environmental sustainability are reflected in the SDGs.

The findings of this study indicate that the more sustainable the financial model is, the better the achievement of the SDGs will be. A strong relationship has been identified between the sustainable finance model and social sustainability (SDG 1, 3, 4, 5, 10, 16), environmental sustainability (SDG 11, 12, 13, 15), and economic sustainability (SDG 8, 9, 17). In addition, the extent to which these results are applicable to Azerbaijan has been assessed, and relevant recommendations have been proposed.