LEVERAGING FINANCE FOR AN ECOLOGICALLY SUSTAINABLE FUTURE: OPPORTUNITIES, CHALLENGES AND SOME RECOMMENDATIONS FOR TRANSITION TO GREEN ECONOMY IN UZBEKISTAN

Abstract

Since “Ecology” has crucial role in individual’s life and there has been occurring tremendous ecological problems almost in all sectors of the world and it is one of the most pressing issue at both national and global level, these rapid climate changes and all other problems with nature that impacting the country’s ecology and making it imbalance. So, it is high time for Uzbekistan and other countries to focus on the green economy and apply it. “Green Economy “is defined as sustainable development, calling for the simultaneous achievement of social, economic, and environmental goals. Uzbekistan is taking green finance as one of the vital components of sustainable development by reducing greenhouse gas emissions and integrating renewable energy, etc. During implementation of Green economy Uzbekistan encounters many challenges in terms of financing, domestic public financing is insufficient for Uzbekistan to achieve the SDGs (“Sustainable Development Goals bond”) and its climate and development ambitions, since at least USD 6 billion investments needed annually, heavily reliance on foreign borrowed money is risky despite all benefits to the green economy. However, if leverage from abroad is well-imposed, regardless of all risks, it could accelerate green development. Without jeopardizing financial stability, it is important to achieve sustainable economic growth through a balanced approach, strengthening debt management, and ensuring transparency.