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UZBEKISTAN'S STRATEGY FOR TRANSITION TO '' GREEN
ECONOMY'': EXISTING PROBLEMS AND PROSPECTIVE
OPPORTUNITIES
Zayniyeva Diyora Sirojiddin qizi
Bachelor's student at Tashkent State University of Economics
+998888158483 zayniyevadiyora84@gmail.com
Abstract:This article focuses on the idea that Uzbekistan's shift to a green
economy is an important undertaking that will help address environmental issues
and economic inequality while promoting sustainable development. This abstract
examines Uzbekistan's diverse transition strategy, highlighting the incorporation
of sustainable agriculture, effective resource management, and renewable energy
sources. In order to facilitate this change and improve economic resilience,
important governmental frameworks and policies that are in line with global
climate commitments are being developed. Public-private partnerships and
community participation play a critical role in fostering eco-friendly practices and
advancing innovation in a variety of industries. In addition, this shift offers
exceptional chances for social justice, technological advancement, and
employment creation, guaranteeing that environmental concerns are interwoven
into the country's economic structure.
Key words: green economy, environmental issues, agricultural practices,
innovation, agriculture, sustainability, green growth
Introduction
When it comes to integrating sustainable practices into its overall
economic planning, Uzbekistan is making great strides. The nation started its shift
from a planned to a market economy in 2016. He realized that he needed to use a
green strategy to bolster his economic transformation. The government is dedicated
to developing an economic paradigm that is more sustainable.Specifically, the
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December 2022 presidential directive outlined a number of measures that the
government needed to carry out in this area. In order to achieve green, sustainable,
and inclusive growth, it established the Action Plan for the Transition to a Green
Economy and Green Growth by 2030, which includes steps to solve the present
environmental and economic difficulties.
The World Bank recently examined the challenges and opportunities
associated with Uzbekistan's shift to a green economy in a report that was produced
in collaboration with that country's Ministry of Economic Development and
Poverty Reduction and other governmental organizations.It highlights the most
urgent threats related to the environment and other issues and suggests actions and
changes to policy. Programs for landscape restoration and energy efficiency are
two examples of these that provide advantages for the environment and the
economy. A few of the results of the investigation are outlined in this article.
Methodology
The following techniques were employed to fulfill the study goals: The
subject was covered using scientific abstraction, analysis and synthesis,
comparison, and statistical analysis. The literature produced by scientists and
researchers in our nation and abroad that focuses on assuring sustainable
development using the ideas of the green economy, as well as theoretical analysis
of statistical data that has been collected and compared.
Analysysis and results
Uzbekistan needs to handle its resources better. Compared to other
upper-middle-income nations and the European Union, the nation has a far poorer
resource efficiency. With an energy consumption per GDP unit over three times
higher than the average for Europe and Central Asia and twice that of Kazakhstan,
a neighbor, Uzbekistan uses water in a particularly inefficient manner.Sand and
dust carried by the wind from degraded regions aggravate particle air pollution
from industrial and urban sources. A sizeable section of the populace is frequently
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exposed to air quality that is deemed detrimental. Uzbekistan needs to solve these
and other difficulties in three time frames: immediate, near-term, and long-term, in
order to realize its green aspirations. Improving air quality and sustainable land and
water usage will be the nation's top green goals given its agriculture-based
economy and the steadily declining quality of the air in populous regions. This can
be accomplished by restoring the landscape, managing water resources effectively,
and taking steps to lessen air pollution. In Uzbekistan, there is a need to expand the
practice of sustainable land use. Land use sustainability is further increased by
climate-smart agriculture methods.But the nation should also take society's
reaction to the green shift into account. There will be winners and losers in the
pattern of investment and employment creation if green sectors are supported and
carbon-intensive activities are reduced. Assisting the businesses that have suffered
the most is crucial. The World Bank is dedicated to helping Uzbekistan realize
inclusive and green growth. A nation can reap the benefits of a green, sustainable,
and inclusive future by implementing the appropriate combination of
environmental laws and reforms. To safeguard its future in the midst of the global
green transformation, which presents numerous chances for economic growth and
development, Uzbekistan needs to embrace sustainable policies.
In Uzbekistan, the program of transition to a green economy and green
growth until 2030 was adopted at the end of 2022. Earlier, the government
announced plans to completely eliminate the use of coal, natural gas and petroleum
products as fuel by 2050 in order to achieve carbon neutrality, or “zero emissions”
(the amount of carbon dioxide emissions that do not exceed the amount absorbed
by oceans and forests).According to the program, by 2030, the share of renewable
energy sources (RES) used will be about 30% of the country’s total electricity
generation. By that time, wind power plants (WPPs) with a total capacity of at least
5000 MW and solar photovoltaic power plants (SPPs) with a total capacity of 7000
MW will be put into operation.In this regard, the issue of awareness of the
population as consumers about the relevance of diversification of energy
consumption, advantages and disadvantages of alternative energy sources is
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relevant.
Challenges to energy security in Uzbekistan
Uzbekistan is located in the heart of Central Asia, a region with a
pressing problem of water scarcity. According to the World Resources Institute,
Uzbekistan ranks 29th among the countries that will be exposed to high levels of
water stress by 2040. The expected level of stress is projected to be more than 80%
in the entire Central Asian region. These figures are depressing, especially
considering the fact that Uzbekistan’s population will exceed 42 million by 2040.
According to projections, rapid population growth could lead to water shortages
ranging from 44-46%. Given the growing demand for water resources and their
rapid depletion, it is important to take appropriate measures to address the
problem.According to the forecasts given in the Presidential Decree dated
01.04.2023, by 2023, water resources are expected to decrease from the long-term
norm by 10-15% in the Syrdarya river basin and by 15-20% in the Amudarya river
basin. At the same time, the Concept of Water Sector Development of the Republic
of Uzbekistan for 2020-2030 notes that the average annual volume of water
resources used by Uzbekistan is 51-53 billion m3, of which 80% (about 41
km3/year) falls on transboundary rivers. Reduction of water volumes in the Amu
Darya and Syr Darya rivers will have a significant impact on water availability in
Uzbekistan, which will entail serious social and economic consequences.[1]
The Government’s vision 5 to transform Uzbekistan into an industrialized,
upper-middle-income country by 2030 enjoys popular support, and difficult
reforms on price liberalization, land ownership and agriculture have been proposed
with some already in place. The predominantly inward-looking economic model
applied until recently has been jettisoned and new policies are encouraging the
integration of private businesses into global and regional value chains. A trend of
poverty reduction reflects robust pre-COVID19 GDP growth, rising incomes of
micro and small businesses, regular minimum wage increases, remittance inflows
and the Government’s targeted safety net programs. On human capital, the country
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is positioned to reap a demographic dividend from its large young population by
offering productive employment opportunities,encouraging economic initiative
and innovation, and strengthening future work capabilities and digital skills.Not
least, the country is blessed with natural capital, especially land and abundant
sunshine.Elsewhere, efforts are still fledgling, and many needed actions have yet
to be agreed. Further integration of sectoral policies is needed in order to harmonize
budgeting, regulations and standards, promote efficiency and synergies as well as
ensure implementation at all levels (suggestions for practical steps and deployment
of cross-sectoral integration could be among the priority tasks of the National
Interagency Green Economy Council proposed in the paper and summarized
below). Also critical are additional and stronger incentives for private and state
actors to channel financial, technological, management and human resources to
sustain natural resources and reduce pollution and carbon emissions. Importantly,
industry will need to be encouraged to adopt genuine corporate and social
responsibility and environmental, social, governance principles and practices.
Analysis and discussion
Energy Inefficient energy use costs at least 4.5% of the GDP annually, with
electricity generation, heating supply and buildings being important sources of
energy loss. Almost 40 % of Uzbekistan’s available generation capacity is past its
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service life leading to power outages 8. In the absence of policies to encourage
energy efficiency and decarbonization,Uzbekistan by 2030 will find itself facing
sharp reductions in oil and gas production (and exports) and increasingly reliant on
coal 9. Research shows that potential of renewable energy sources in Uzbekistan
is 270 million tons of reference fuel, which is more than three times the annual
need for energy resources, and most of this potential is in solar energy 10. Solar
electricity costs have fallen 80% worldwide in 10 years, and are even more
favorable in Uzbekistan, which enjoys plenty of sunshine.The industrial sector,
dominated by chemical manufacturing and mining, uses almost a quarter of total
energy use in the country, and almost all of it natural gas. The sector is challenged
not only to cut emissions and become less polluting, but also to respond to the
rapidly reshaping of global production systems which require cleaner production
processes, innovation and a talented labor pool to remain competitive. A
Presidential decree goes some way to support an industrial policy, calling for “the
formation and implementation of a tax and tariff policy that encourages the
reorientation of the economy from the export of raw materials to the production of
high-quality products and deep processing,” and more is needed. Uzbekistan’s
agriculture sector is the second biggest emitter of GHGs and the largest user of
water. More than three-quarters of pasture land has been degraded,16 and
productivity on good land has dropped by half in last 20 years, with yields of fodder
declining by an average of 2% per ha per year 15. ‘Greening’ agriculture, coupled
with agricultural sector liberalization launched after 2016, has the potential to
significantly increase productivity, employment and income, and cut water use.
Agriculture employs more people than industry and trade sectors together. The
recently adopted agricultural strategy for Uzbekistan has an implicit jobs agenda.
What is needed is a “roadmap” for realizing job potential in the sector while
‘greening’ it. Screen all elements of stimulus packages for their longer terms
implications across the key dimensions of long-term growth and equitable
livelihood potential, resilience to future shocks, and decarbonization and
sustainable growth trajectory. Priority actions should create jobs and reduce
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inequality. They should be actions that can be implemented quickly, including
“shovelready” targets for public investment, with a focus on non-emissions-
intensive infrastructure projects, and existing policy frameworks that can be
rapidly scaled up. At the same time, they should favor cross-sectoral,cross-
government approaches that take a long-term, systemic approach to growth and
sustainability ratherthan focus on single technological outcomes. Policy makers
could also avoid relaxing existing environmentalregulations to provide near-term
relief, as the costs of longer-term vulnerability will often outweigh shortterm
economic relief.
Provide specific support for reskilling and training for industries affected by
the immediate crisis and longer-term decarbonization, along with supportive
policies such as reforming housing policies to encourage mobility. The
requirement of introducing energy-efficient solutions in the government-backed
affordable housing programs needs to be expanded to the wider construction
industry across all the segments, including residential, commercial and industrial
facilities. Specialists of the relevant government agencies primarily responsible for
the construction sector, and construction and engineering firms will need to be
trained in green construction technologies, products and services. Capacity
building is also needed for key personnel of the transport authorities and the
municipalities formulating policies regarding public and automobile freight
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transport.
Conclusion
To sum up, Uzbekistan's plan to move to a green economy offers a great
chance to tackle urgent environmental issues while supporting sustainable
development. In spite of current roadblocks, like inadequate infrastructure,
financial limitations, and a dependency on conventional energy sources, the
country is ready to take advantage of its abundant natural resources and human
capital. By making investments in renewable energy, improving energy efficiency,
and encouraging sustainable agricultural practices, Uzbekistan can not only lessen
the effects of climate change but also boost economic growth and raise the standard
of living for its people. Cooperation between the public, private, and international
partners will be essential to overcoming obstacles and maximizing the potential of
a green economy. Adopting this transition will not only establish Uzbekistan as a
regional leader, but also in sustainability but also contribute to global efforts in
combating climate change.
References:
1.https://cabar.asia/en/transition-to-green-economy-in-uzbekistan-
opportunities-and-challenges
2.https://www.worldbank.org/en/results/2023/10/26/uzbekistan-realizing-an-
inclusive-green-growth-transition
3.https://www.undp.org/sites/g/files/zskgke326/files/migration/uz/Uzb_GR
GE_PolicyBrief_ExSum_v1_20210303_DESIGNED.pdf
4.https://www.fao.org/faolex/results/details/en/c/LEX-FAOC197240/
5.http://www.unep.org/greeneconomy/AboutGEI/WhatisGEI/tabid/29784/D
efault.aspx
6.https://president.uz/oz/lists/view/5805
