ADVANCING THE GREEN FINANCE ECOSYSTEM IN UZBEKISTAN: OPPORTUNITIES, POLICY INNOVATIONS, AND FUTURE DIRECTIONS

Abstract

This article examines the evolving landscape of green finance in Uzbekistan and explores the opportunities, institutional reforms, and strategic policy innovations necessary for accelerating the country’s transition toward a sustainable economic model. As global financial markets increasingly integrate environmental, social, and governance (ESG) principles, Uzbekistan faces both the challenge and the opportunity to align its financial system with international standards while addressing domestic ecological priorities. The study analyzes the current state of green financial instruments, including green bonds, sustainable lending practices, and climate-related investment programs, highlighting their potential to mobilize long-term capital for renewable energy, energy efficiency, and low-carbon development initiatives. The findings indicate that the expansion of Uzbekistan’s green finance ecosystem is constrained by the limited maturity of regulatory frameworks, gaps in institutional capacity, and insufficient private sector engagement. At the same time, the country possesses significant opportunities to accelerate green financial flows through the development of a national taxonomy, strengthening ESG disclosure practices, enhancing financial sector competencies, and fostering partnerships with international development institutions. The article concludes that a coordinated policy approach combining regulatory modernization, financial innovation, and institutional strengthening is essential for building a resilient and competitive green finance ecosystem capable of supporting Uzbekistan’s environmental and economic transformation