PRIORITY DEVELOPMENT OF THE GREEN ECONOMY IN AZERBAIJAN

Abstract

Formulation of the problem. The transition to a green economy is one of the key directions of global development; however, the decarbonization process is accompanied by significant risks that can weaken the economic security of a state. This study applies comparative analysis of international experiences and statistical data to evaluate the economic and social impacts of green policies. The purpose of the study. Additionally, the paper emphasizes the importance of adapting global decarbonization frameworks to the specific economic structure of resource-dependent states such as Azerbaijan, highlighting the need for flexible policy tools. The object of the study is the organizational, methodological and technological aspects of strengthening internal control systems through the implementation of modern digital technologies and innovative monitoring tools. Research methods. Using a descriptive-analytical methodology based on secondary data, regulatory documents, corporate reports, and international assessments, the paper evaluates the extent to which digitalization, automation, data analytics, and continuous control mechanisms have strengthened internal control effectiveness. The main hypothesis. The findings provide practical guidance for policymakers, businesses, and energy planners in implementing sustainable strategies. Present of the main material. This paper analyzes the main threats that arise during ecological transformation: financial, technological, energy-related, institutional, and social. The shift toward green technologies requires large-scale investments, which increase fiscal pressure, create risks of growing external dependence, and widen the technological gap. Additional threats emerge in traditional economic sectors, including declining competitiveness of the hydrocarbon industry and the need to restructure industrial infrastructure. Special attention is given to Azerbaijan, which, following COP29, intensified its policies aimed at developing renewable energy sources (solar and wind capacity in Jabrayil, Fuzuli, the Caspian basin), establishing green zones, and modernizing the energy system. Originality and practical significance. Despite progress, the country faces shortages of domestic investment, technological dependence on imported high-tech equipment, the need to modernize digital networks, and challenges related to social adaptation of workers in traditional sectors. Conclusions and prospects for further research. The results show that successful risk management requires systematic state policy, development of national technological potential, strengthening of energy infrastructure, improvement of legislation, and implementation of “just transition” programs. The material may be used in developing a long-term sustainable development strategy for Azerbaijan.