Green and Sustainable Financing as a Promising Mechanism for Attracting Foreign Investment

The article discusses key initiatives in the field of sustainable development. Conceptual approaches to the definitions of “green economy” and “green finance” are described. Based on the study of world experience, instruments and financing mechanisms are analyzed, such as green bonds, credits and loans, which are not fundamentally new in technical terms, but are characterized by an environmental component; modern directions of development of the global green finance market are revealed; a model for financing the green economy was developed by attracting private entrepreneurial capital and recommendations were formulated for its implementation in the Republic of Azerbaijan. Current financial instruments for implementing green projects in the country have been identified and justified as the most important direction for achieving sustainable development of the national economy.