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Akbar Novruz

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Azerbaijan’s innovative and disciplined approach to sustainable development has earned high praise in the 2025 publication of the United Nations Department of Economic and Social Affairs (UNDESA). In a glowing assessment, the report recommends that other member states look to Azerbaijan as a model in aligning national budgets with the Sustainable Development Goals (SDGs)—not just in vision, but in practical implementation.

According to the UN report, Azerbaijan made substantial progress in addressing SDG-related financing gaps through the deployment of forward-thinking mechanisms such as the Integrated National Financing Framework (INFF) and the SDG Investor Map. These instruments have allowed the country to mobilize domestic resources efficiently, while improving public investment planning and policy coherence.

In 2022, Azerbaijan aligned 82.3% of its consolidated budget expenditures with its SDG priorities, equivalent to about 23% of its national GDP—a remarkable achievement for a middle-income country. The report acknowledges this level of alignment as a benchmark rarely seen outside high-income countries, further highlighting the country's emergence as a sustainability leader in the region.

Azerbaijan has also institutionalized the use of a Medium-Term Expenditure Framework (MTEF) to support key areas such as agriculture, education, health, and environmental protection. This multi-year planning tool helps the government ensure that spending decisions are sustainable, targeted, and strategically aligned with both national and global development goals.

Moreover, Azerbaijan has taken concrete steps to promote green finance through the adoption of Environmental, Social, and Governance (ESG) principles. These are increasingly used to guide public and private investment decisions, supporting the country’s gradual transition to a low-emission and climate-resilient economy.

One of the most notable achievements highlighted by UNDESA is Azerbaijan’s track record of transparency and voluntary reporting. The country is the only one in the CIS region and among just five globally to have submitted four Voluntary National Reviews (VNRs)—in 2017, 2019, 2021, and 2024—to the UN High-Level Political Forum. These reviews demonstrate Azerbaijan’s commitment to open governance and allow for public and international scrutiny of its SDG progress.

This recognition comes at a pivotal time. The global community is entering the final stretch toward the 2030 Agenda for Sustainable Development, and many developing and middle-income countries continue to face challenges in aligning fiscal policies with their SDG aspirations.

With this recognition, Azerbaijan is emerging as a model for South-South cooperation in the SDG era—showing that middle-income countries can lead with accountability, financial innovation, and institutional reform.

Azerbaijan’s successful alignment of budgetary resources with development priorities also offers a strategic advantage in its broader foreign policy, particularly in areas such as green energy partnerships, climate finance, and regional connectivity projects like the Middle Corridor and the Green Energy Corridor. The country’s proactive engagement in these initiatives, combined with its sound SDG framework, creates a strong foundation for attracting sustainable investments and building resilient supply chains.

As the global deadline for the 2030 Agenda for Sustainable Development approaches, the pressure on countries to mobilize domestic and international financing continues to grow. Many nations are still grappling with debt sustainability, climate shocks, and post-pandemic recovery gaps. In this context, Azerbaijan’s experience stands out as a pragmatic roadmap—one that balances ambition with accountability.

Azerbaijan’s approach—strategic, transparent, and reform-driven—offers a compelling blueprint. By combining strong public financial management, inclusive reporting, and institutional innovation, the country is not only advancing its own sustainability agenda but also contributing to regional leadership in green development.

As more countries search for viable models to bridge the SDG financing gap, Azerbaijan’s experience serves as an instructive and hopeful example of what’s possible when commitment meets capability.