SOLUTION OF SOCIAL PROBLEMS IN
MANAGEMENT AND ECONOMY
International scientific-online conference
149
GREEN FINANCE MARKET IN UZBEKISTAN: PROGRESS,
CHALLENGES, AND PROSPECTS
Pulatova Saodat
(PhD student of TSUE)
https://doi.org/10.5281/zenodo.15687972
Abstract
Uzbekistan is making significant advances in green finance, marked by the
issuance of its first sovereign green bond in 2023 and a major corporate green
Eurobond by Agrobank in 2024. These initiatives support the nation’s ambitious
renewable energy goals and signal Uzbekistan’s commitment to sustainable
economic transformation. However, key obstacles remain, including the
underdevelopment of the domestic capital market and limited private sector
participation. This paper analyzes recent progress, key challenges, and strategic
recommendations to expand green finance in Uzbekistan.
Keywords:
green finance, green bonds, Uzbekistan, sustainable
development, renewable energy, capital market, ESG, climate investment
1.Introduction
Green finance channels capital toward projects with clear environmental
benefits. In Uzbekistan, the sector is still in its infancy but is growing rapidly as
the government sets ambitious targets for renewable energy and sustainability.
In recent years, the country has taken concrete steps to develop a local green
finance ecosystem and attract international investment.
2.Key Instruments and Milestones
Uzbekistan’s green finance market is dominated by green bonds. In 2023,
the Ministry of Finance issued a sovereign green Eurobond—worth UZS 4.25
trillion, with a 3-year maturity—on the London Stock Exchange. This was the
first CIS sovereign green bond denominated in national currency and drew
interest from more than 30 international investors.
In 2024, Agrobank, one of the country’s leading financial institutions, issued
a corporate green Eurobond totaling USD 400 million (5 years) and UZS 700
billion (2 years), both also listed in London. The bonds were aligned with ICMA
Green Bond Principles and received technical support from the Global Green
Growth Institute.
3. Market Statistics and Trends
Total green bonds issued (2023–2024):
~UZS 5.1 trillion (over USD 450
million equivalent)
Sectors financed:
renewable energy (solar, wind), energy efficiency,
sustainable transport
SOLUTION OF SOCIAL PROBLEMS IN
MANAGEMENT AND ECONOMY
International scientific-online conference
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Investor base:
international financial institutions, sovereign funds, and
sustainability-focused investors
Renewable energy target:
27 GW by 2030 (2.7 GW operational, 9 GW
under construction as of 2024)
Annual green investment need:
estimated at ~USD 6 billion
4.Analysis: Strengths and Weaknesses
Strengths:
Landmark sovereign and corporate green bond issuances have positioned
Uzbekistan as a regional leader
International investor appetite for Uzbekistan’s green finance products is
strong
Policy support for renewable energy expansion is robust and growing
Weaknesses:
The domestic capital market remains underdeveloped, limiting local green
bond placement
Private sector issuances are few, and market depth is shallow
Financial and ESG literacy among issuers, investors, and the public
remains low
Regulatory standards need further alignment with international best
practices
5. Recommendations
Develop the domestic capital market:
Introduce clear green bond
regulations, tax incentives, and support for local issuers
Encourage private sector participation:
Foster more non-state green
issuances via public–private partnerships, blended finance, and credit
enhancement
Increase financial literacy:
Implement ESG training programs and public
awareness campaigns
Strengthen international cooperation:
Expand collaboration with
organizations such as the World Bank, GGGI, EBRD, AIIB, and OECD
Ensure transparency:
Adopt international reporting standards, such as
ICMA GBP and Climate Bonds Standard
6.Conclusion
Uzbekistan’s early success in green finance, especially through its sovereign and
corporate green bonds, reflects a strong commitment to sustainable growth. To
build on this foundation, further development of the domestic market, deeper
private sector engagement, and improved regulatory alignment are essential.
SOLUTION OF SOCIAL PROBLEMS IN
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International scientific-online conference
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These efforts will help turn green finance into a core driver of Uzbekistan’s low-
carbon, climate-resilient future.
References:
1.
1.OECD (2023). Financing Uzbekistan’s Green Transition: Capital Market
Development and Opportunities for Green Bond Issuance. OECD Publishing.
2.
2.UNDP Uzbekistan (2023). Uzbekistan’s First Sovereign Green Bond
Issued in National Currency.
3.
3.GGGI (2024). Uzbekistan’s Agrobank Issues USD 400 Million and UZS
700 Billion Green Eurobond on the London Stock Exchange with GGGI’s Support.
4.
4.EBRD (2024). Uzbekistan Country Investment Profile. European Bank
for Reconstruction and Development.
5.
5.Daryo.uz (2023). O‘zbekiston ilk marta milliy valyutada yashil maqomiga
ega suveren xalqaro obligatsiyalarni joylashtirdi.
