FUNDING THE CIRCULAR ECONOMY: THE FUNCTION OF GREEN FINANCIAL INSTRUMENTS IN UZBEKISTAN

Abstract

The shift to a circular economy has emerged as a vital goal for sustainable development in developing nations. This is especially pertinent for Uzbekistan, where fast industrialisation, escalating waste production, water scarcity, and elevated energy intensity provide considerable environmental challenges. This study investigates the function of green financing instruments in facilitating the advancement of the circular economy in Uzbekistan. The research employs a mixed-method approach that integrates institutional analysis and sectoral assessment to identify essential financial processes, appraise current progress, and elucidate remaining constraints. The results indicate that green bonds, ESG banking, and public-private partnerships are essential for funding circular efforts, whereas institutional constraints, restricted capital markets, and inadequate ESG expertise pose significant hurdles. Recommendations for policy are put out to improve the efficacy of green financing and expedite circular transformation.