Green Eurobonds as Catalysts for Sustainable Finance in Uzbekistan Promoting Financial Innovation for Environmental and Economic Resilience

Abstract

The escalating imperatives of climate change and sustainable development have accentuated the need for innovative financial instruments that harmonize environmental objectives with economic resilience. Green Eurobonds have emerged as pivotal within the sustainable finance landscape, providing an avenue for nations to fund projects with profound ecological impact while attracting investment from Environmental, Social, and Governance (ESG)-oriented stakeholders. This study examines Uzbekistan’s inaugural issuance of green Eurobonds, a strategic advancement toward financing green infrastructure, fostering renewable energy, and addressing critical environmental challenges such as water scarcity and desertification. By aligning green Eurobond initiatives with the United Nations Sustainable Development Goals (SDGs) and commitments under the Paris Agreement, Uzbekistan demonstrates its dedication to a green economy transition, enhancing its appeal to global environmentally conscious investors. This research evaluates the transformative potential of green Eurobonds to bolster sustainable economic resilience, identifies the challenges intrinsic to their implementation in emerging markets, and offers strategic recommendations to optimize their impact on Uzbekistan’s sustainable development trajectory. The findings contribute to the discourse on sovereign green finance, emphasizing the essential role of green Eurobonds in shaping economic policies and supporting environmental sustainability in emerging economies.