Baku: The annual financing gap for the implementation of the Sustainable Development Goals (SDGs) globally amounts to approximately $4 trillion, Huseyn Huseynov, Advisor to the Minister of Economy, revealed during the '8th SDG Dialogue: Innovative Financing for Sustainable Development - Beyond Aid and Traditional Official Development Assistance (ODA)' session at the Islamic Development Bank (IsDB) Annual Meetings in Baku.

According to Azeri-Press news agency, Huseynov highlighted a significant global shortfall in SDG financing. He emphasized that the need for financing has become particularly acute in sectors like sustainable infrastructure, clean energy, water systems, digital transformation, and climate adaptation.

Huseynov pointed out that rising debt risks, geopolitical tensions, inflationary pressures, and limited fiscal space are hindering the ability of many countries to finance the SDGs. In this context, traditional financing mechanisms are proving inadequate, necessitating a shift to innovative financing instruments for the implementation of the Sustainable Development Goals.

He further explained that mechanisms such as blended finance, green finance, Islamic finance, digital finance, and public-private partnerships are increasingly critical in addressing the financing challenges for the SDGs.