DOI: https://doi.org/10.36719/2663-4619/118/29-33
Rahiba Abdulhasanova
Nakhchivan State University
PhD student
https://orcid.org/0009-0003-8702-7766
abdulhasanovarahiba@gmail.com
Bridging the Finance Gap: Mobilizing Capital for Azerbaijan’s
Green Economy Transition
Abstract
Azerbaijan’s ambitious transition to a green economy faces significant financial obstacles that could hinder its sustainability goals. This paper offers an in-depth examination of the financial challenges that are hindering Azerbaijan’s transition from hydrocarbon dependence to renewable energy sources and the development of sustainable infrastructure. Analyzing recent case studies and financial data, three key obstacles are identified: (1) persistent fuel subsidies that distort energy markets, (2) underdeveloped domestic green finance mechanisms, and (3) insufficient risk mitigation for private investors. The study advocates a collaborative strategy that combines innovative financial instruments with key policy reforms, emphasizing the critical role of sovereign green bonds, blended finance models, and strengthened public-private partnerships. Our findings suggest that removing these financial barriers could enable Azerbaijan to leverage an estimated $2.3 billion annually in green investments by 2030, helping to achieve its renewable energy goals and diversify the broader economy.
Keywords: green finance, energy transition, sustainable investment, climate policy, Azerbaijan