The article provides a comprehensive analysis of the formation and implementation of green finance mechanisms within Uzbekistan’s banking system. It examines the legal and institutional foundations of this sector, the current state of market infrastructure, risk management approaches, and the distinctive features of investment instruments. The study explores practical measures aimed at decarbonizing banks’ credit portfolios, the use of financial instruments such as green bonds and sustainability-linked loans, as well as the need to develop a national green taxonomy and ensure transparency of environmental and climate-related data.

The article proposes a phased “roadmap” for short-, medium-, and long-term actions, identifying key performance indicators (KPIs) and de-risking measures to mitigate financial and economic risks. The conclusions are closely linked to Uzbekistan’s economic reforms from 2017 to 2025, digital transformation processes, and sustainable development goals. The study substantiates pathways for strengthening environmental responsibility within the banking sector, advancing the transition to a green economy, and accelerating alignment with international financial standards.

green finance, green bonds, sustainability-linked loans, ESG risks, green taxonomy, decarbonization, bank portfolio, climate risks, sustainable development.

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