Financial Inclusion for Sustainable Development: How Climate Vulnerability Shapes <scp>SDG</scp> Outcomes

ABSTRACT This study examines the role of financial inclusion in advancing Sustainable Development Goals (SDGs) across 75 countries from 2004 to 2023, incorporating climate vulnerability as a moderating factor. Using panel data, 2SLS, and quantile regression, the findings of the study reveal that financial inclusion positively influences SDG 3 (health) and 5 (gender equality), while negatively affecting SDG 2 (zero hunger) and 8 (decent work). The impact of financial inclusion strengthens under higher climate vulnerability, particularly for health, education, and undernourishment, though GDP remains unaffected. The sub‐sample analysis highlights significant effects on SDGs 5, 8, and 9 in secondary countries. This research offers critical insights for policymakers by underscoring the importance of integrating financial inclusion into broader development strategies, particularly in the face of escalating climate vulnerability. By linking finance, sustainability, and climate vulnerability, the study provides a nuanced framework for crafting policies that foster achievement of SDGs and climate‐resilient development pathways.