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• Educational programs on ecology and rational use of natural resources for
the population.
International financing and support
Many of the proposed solutions require significant financial investments.
International organizations such as the World Bank and the UN Development
Program are already providing assistance. Increased funding and attraction of
new donors could accelerate the implementation of environmental and
infrastructure projects.[3]
A complete restoration of the Aral Sea to its former boundaries is unlikely,
but significant improvements in the environmental situation and living
conditions can be achieved. The key steps remain rational management of water
resources, international cooperation, restoration of the ecosystem and social
support for the population of the region.
List of references
1. Mednikov A. The end of the ice age. A global environmental catastrophe was predicted
for
Central
Asia
//
Lenta.ru.
2014.
November
15.
URL:
https://lenta.ru/articles/2014/11/15/glacier/ (date of access: 01.03.2023).
2. Sokolov V. I. The Impact of Climate Change on the Aral Sea Basin: A View from Uzbekistan
// Adaptation to Climate Change: Experience of Central Asia. Tashkent: Scientific Information
Center of the Interstate Water Commission of Central Asia, 2016. Pp. 4
–
29. URL:
http://www.cawater-info.net/library/rus/cc-adapt-ca-exp.pdf (date of access: 01.03.2023).
3. Tolstykh V. L. Central Asia and International Law: Factors, Problems, Prospects // Law.
2022. No. 8. Pp. 42
–
59.
GREEN FISCAL REFORMS AND TAXONOMY: DRIVING UZBEKISTAN’S
SUSTAINABLE ECONOMIC GROWTH
Yuldasheva Madina Tohir qizi
PhD Candidate, 1st Year, Research Center "Scientific Bases and
Issues of Economic Development Uzbekistan” under TSUE
Several reforms are currently being implemented to support Uzbekistan's
sustainable economic growth strategy and its transition to a green economy.
Presidential Decrees No. PF-60 (January 28, 2022) and No. PF-158 (September
11, 2023) under the "Uzbekistan - 2030" strategy set out a number of goals aimed
at ensuring sustainable development across the economic, environmental, and
social spheres, and outline the tasks necessary to achieve them. The main
directions of these strategies include:
1.
Enhancing the green economy and energy efficiency: By 2026, the energy
efficiency of the economy is set to improve by 20%, with electricity production
increasing by 30 billion kWh to a total of 100 billion kWh. The share of renewable
“MILLIY IQTISODIYOTNI ISLOH QILISH VA BARQAROR RIVOJLANTIRISH ISTIQBOLLARI”
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energy sources is expected to rise to 25%, saving 3 billion cubic meters of natural
gas annually.
2.
Introduction of green technologies in industry and transport: This
includes expanding the production and use of electric vehicles, electrifying
transport infrastructure, and improving overall energy efficiency.
3.
Improving the investment environment: The goal is to attract $120 billion
in investment by 2026, including $70 billion in foreign investments. Projects
valued at $14 billion are planned to be carried out through public-private
partnerships in sectors such as energy, transport, healthcare, ecology, and others.
4.
Ecology and environmental protection: Plans include planting 200 million
trees annually, increasing the waste recycling rate from 21% to 50% by 2026, and
creating an additional 500,000 hectares of green space in the dried-up Aral Sea
area.
5.
Water resources management: The efficient use of water resources aims
to save 7 billion cubic meters of water and reduce energy consumption in water
management[1].
The measures aimed at transitioning to a green economy, managing energy
resources efficiently, and achieving sustainable development form a key
component of Uzbekistan's national development strategy. These comprehensive
strategies aim to promote economic growth, ensure environmental stability, and
enhance social equity. In pursuit of these goals, Uzbekistan is expected to attract
both domestic and foreign investments, increase energy efficiency, and improve
social well-being[2].
Achieving the objectives outlined in the table will require substantial
financial investment but will yield long-term benefits in the form of enhanced
energy and environmental efficiency, improved quality of life, and economic
gains. Investment in energy-efficient technologies, renewable energy sources,
and environmental protection will lay a solid foundation for the nation's
sustainable development. Specifically, reducing energy consumption per unit of
GDP necessitates the implementation of energy efficiency technologies and the
modernization of production processes[3]. Although this may entail higher initial
costs, it will lead to considerable savings over time by lowering energy
consumption. As energy efficiency improves, production costs will decrease, thus
enhancing the competitiveness of enterprises and promoting more stable
economic growth.
Industrial electricity consumption is projected to decline from 26% in
2022 to 20% by 2030, which will require the adoption of energy-efficient
technologies in various industrial sectors. By reducing electricity consumption,
industrial costs will decrease, resulting in higher profitability for businesses,
greater economic stability, and long-term investment benefits. Similarly, the goal
to increase the share of renewable energy sources from 8% in 2022 to 30.5% by
2030 necessitates substantial capital investment in renewable energy
technologies such as solar, wind, and hydropower. Establishing the technological
“MILLIY IQTISODIYOTNI ISLOH QILISH VA BARQAROR RIVOJLANTIRISH ISTIQBOLLARI”
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infrastructure for solar photovoltaic plants is essential for reducing reliance on
conventional energy sources. In the long run, renewable energy is cost-effective,
safe, and environmentally friendly, which supports sustainable economic growth.
For instance, plans to expand solar photovoltaic power capacity from 10 MW in
2022 to 1,500 MW by 2030 will require significant investment in infrastructure,
equipment, and maintenance. While the initial costs are high, solar energy offers
low long-term electricity production costs, making it a financially viable option.
Table A.
Target indicators for the transition to a "green" economy and ensuring
"green" growth in the Republic of Uzbekistan until 2030
Nr.
Indicators
in
2022
2024
2026
2028
2030
1.
Reduction of energy consumption per unit of
GDP (compared to 2021)
%
5,0
14,0
22,0
27,0
30,0
2.
Electricity consumption in industry, its share
in total consumption
%
26,0
25,0
23,0
21,0
20,0
3.
Increasing the share of renewable energy
sources in the total volume of electricity
production (along with hydropower)
%
8,0
9,0
24,3
29,0
30,5
kWt/s
6,5
8,6
25,0
34,0
40,7
4.
Construction of small power solar
photoelectric plants
MWt
10,0
150,0
400,0
800,0
1500,0
5.
Population with access to improved drinking
water sources, relative to the total
population
%
69,7
80,93
87,12
88,5
90,0
6.
Increasing tree and shrub stocks in the forest
fund territories
mln.m
3
64,2
68,1
77,0
85,5
92,3
7.
Expansion of green spaces in cities within
the framework of the "Green Space" project
(relative to the total area of the settlement)
%
8,3
12,4
15,8
23,8
30,0
8.
Level of processing of generated solid
household waste
%
30,0
40,0
50,0
60,0
65,0
Source:
APPENDIX 2 to the Decree with No. PQ-436 of the President of the Republic of
Uzbekistan from December 2, 2022.
Additionally, plans to increase access to drinking water, with the goal of
reaching 90% of the population by 2030, will contribute to improved public
health and productivity, yielding long-term social and economic benefits.
Expanding forest reserves to 92.3 million cubic meters by 2030 will promote
ecological stability and provide economic opportunities in sectors like tourism
and agriculture. Increasing urban green spaces to 30% by 2030 is particularly
important in the transition to a green economy, as it enhances environmental
quality and urban living standards, promotes health, and stimulates tourism and
economic activity. Furthermore, the goal to increase the recycling rate of solid
household waste by 65% by 2030 will boost resource recovery for the economy
“MILLIY IQTISODIYOTNI ISLOH QILISH VA BARQAROR RIVOJLANTIRISH ISTIQBOLLARI”
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and reduce waste transportation costs, contributing to more efficient resource
management.
Decree No. 561, issued by the Cabinet of Ministers of the Republic of
Uzbekistan on October 25, 2023, outlines a set of strategic measures aimed at
integrating environmental sustainability with economic growth in the country.
The decision introduces the taxonomy of the "green" economy, demonstrating
that investment and financing processes are guided by specific criteria, thereby
aligning environmental development with economic progress. This resolution
provides an analysis of key aspects and measures necessary for the advancement
of the "green" economy[4].
The President of Uzbekistan has issued strategic directives for
implementing the transition plan to a "green" economy by 2030, which includes
significant reforms that seek to balance economic growth with environmental
sustainability. As part of this initiative, the decree mandates the development of
a National Taxonomy to define activities within the "green" economy. This
taxonomy provides a set of criteria that clearly classifies various sectors of the
"green" economy, enabling the identification of specific criteria that projects
must meet to qualify for investments, subsidies, and financial support.
The primary goal of this decree is to increase private sector participation in
Uzbekistan’s "green" economy by establishing clear classification and eligibility
standards for financing "green" projects. The National "green" taxonomy will be
piloted until October 1, 2024, during which time projects and business activities
will be classified and financed through "green" bonds and loans[5]. This initiative
is expected to foster the development of the "green" bond market and other
financial instruments in the country. Additionally, all state-provided financial
support, including subsidies, loans, and other guarantees, will be categorized
based on the "green" economy taxonomy. This approach allows for the evaluation
of the expenditures of private and public entities receiving public assistance
against environmental criteria, while also improving the reporting process.
Bibliography
1
02.12.2022 yildagi PQ-436-son O‘zbekiston Respublikasi Prezidentining qarori, “2030-
yilgacha O‘zbekiston Respublikasining ‘yashil’ iqtisodiyotga o‘tishiga qaratilgan islohotlar
samaradorligini oshirish bo‘yicha chora-tadbirlar to‘g‘risida.” [Online]. Available:
https://lex.uz/docs/-6303230
2
L. Merrill, “Reform of Fossil-fuel Subsidies,” Nord. Work. Pap., 2014.
3
J. Yan and R. Wang, “Green Fiscal and Tax Policies in China: An Environmental Dynamic
Stochastic General Equilibrium Approach,” Sustain. , vol. 16, no. 9, 2024, doi:
10.3390/su16093533.
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25.10.2023 yildagi 561-son O‘zbekiston Respublikasi Vazirlar Mahkamasining qarori,
“Milliy ‘yashil’ iqtisodiyot taksonomiyasini tasdiqlash to‘g‘risida.” [Online]. Available:
https://lex.uz/ru/docs/-6644013
5
H. van Asselt, The Politics of Fossil Fuel Subsidies and their Reform. 2018. doi:
10.1017/9781108241946.
