STRATEGIES FOR SUPPORTING SUSTAINABLE ECONOMIC DEVELOPMENT THROUGH GREEN FINANCIAL INSTRUMENTS

Аннотация

This article covers the current aspects of achieving economic and environmental sustainability through green financial instruments. The strategic basis for the use of financial instruments to prevent climate change and rational use of resources is analyzed. Based on the experience of Uzbekistan, the current state and prospects of green finance are discussed, existingproblems and proposals for theireliminationare put forward. Keywords: Green finance, sustainable development, environmental investments, green bonds, economicstrategies, financial mechanisms In the current era of globalization and technological progress, humanity is faced with the complex task of simultaneously ensuring economic growth and maintaining environmental safety. Especially in the context of the acceleration of the industrialization process and the limited availability of natural resources, the need to implement the concept of sustainable development is increasing day by day. In this regard, the active operation of the financial system in an ecological direction, that is, the widespread introduction of green financial instruments, is of great importance. Green finance serves to form a sustainable economic model byfinancing environmentally beneficial, low-carbon and energy-efficient projects. The main essence of green finance is that it combines economic activity with environmental interests. That is, financial resources are directed not only to profit, but also to priority areas such as reducing the negative impact on the environment, increasing energy efficiency, reducing waste and combating climate change. The main instruments in this direction include green bonds, green loans, environmental grants, investments in carbon markets. For example, through green bonds, the state or private sector attracts funds for its environmental projects, and these funds are directed to financing solar energy, wind power plants, bioenergy or waste processing facilities. At the same time, environmental loans issued by banks allow manufacturers tointroduce energy-saving technologies. Currently, the global green finance market is growing at a significant pace. According to estimates by international financial institutions, the volume of green bonds issued worldwide by the end of 2024 will reach 1.7 trillion US dollars. The table below shows the volume of green finance investmentsindifferent regions: Volume ofgreen financeinvestments (as of2024) 46 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue08,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai Green bonds Environmental Region Totalvolume (billion$) (billion$) loans(billion $) European Union 520 310 830 USA 430 250 680 Asia-Pacific 310 220 530 Latin America 90 60 150 Afriсa 40 30 70 Worldwide 1390 870 2260 As can be seen from the table above, green finance investments are mainly concentrated in developed regions. However, this area also offers great opportunities for developing countries, including Uzbekistan. Uzbekistan has adopted the “Strategy for Transition to a Green Economy – 2030”, which sets out tasks such as increasing the share of renewable energy sources, introducing environmentally friendly technologies and expanding green financial instruments. Nevertheless, the formation of a green financial market in the country is just beginning. One of the main problems in this regard is the insufficient mechanisms for assessing environmental investments by financial institutions, and the second is the low level of environmental awareness of citizens and entrepreneurs. Therefore, in order todevelop a green financial system, it is necessary to strengthen state coordinating institutions, improve regulatory legislation, introducepreferences forbanks ongreen loans, and attract theprivate sector. In addition, it is possible to attract technical assistance and grant funds by expanding cooperation with international financial organizations. For example, environmental projects are financed through relations with structures such as the World Bank, the Asian Development Bank, and the European Bank for Reconstruction and Development (EBRD). In 2023, the EBRD allocated a green loan of 50 million euros for the construction of a solar power plant in Uzbekistan. In general, green finance is an important tool that allows combining economic growth with environmental sustainability. This will not only protect the environment, but also develop new economic sectors - for example, green energy, waste recycling, ecological construction and create newjobs.