Principles of green financing and ESG standards are supported
In modern conditions, issues of environmental sustainability and green financing are among the key directions of the global economy. In this regard, it is especially important for financial organizations to integrate the principles of environmental, social, and governance (ESG) into their activities and to contribute to achieving the country’s sustainable development goals by financing green projects and financial products.
Seung-yeon Stella Lee, Uzbekistan Country Representative of the Global Green Growth Institute, shared her views on this topic:
– We are successfully cooperating with Uzbekistan. Within the framework of the project ‘Bridging the climate finance gap in Central Asia’, the Global Green Growth Institute organized several events in Uzbekistan and Kyrgyzstan. They are aimed at supporting the integration of environmental responsibility principles into the work of financial institutions and enhancing the capacity of banks and other financial organizations to implement green practices in accordance with international standards.
The project is financed by the UK’s International Development Programme and implemented with the support of GIZ.
Within the framework of the project, meetings were held with representatives of the sector on the following topics: ‘Standards, ratings and ESG reporting for commercial banks of Uzbekistan: A practical roadmap’ and ‘practical environmental and social management system (ESMS) for small and medium-sized businesses and the credit process: from policy to daily lending practice’”.
Participants received answers to questions on ESG practices, green public procurement, certification stages, ESMS procedures, and other topics.
In Uzbekistan, key tasks have been defined for the transition to a green economy. Particular attention is paid to financing projects in renewable energy and climate-resilient agriculture, developing green financial products, and issuing green and sustainability bonds.
The application of ESG principles enables financial institutions to capitalize on emerging opportunities and effectively mitigate potential risks. As a result of developing green banking skills, the institutional capacity of key participants in the financial market is strengthened, thereby contributing to the creation of the necessary instruments and regulatory framework to attract climate finance.
Interviewed by Nasiba Ziyodullayeva, UzA
