IMPROVING THE EFFICIENCY OF BANKS’ GREEN FINANCING IN UZBEKISTAN AND KAZAKHSTAN

Abstract

Climate change and the global transition toward low-carbon development are prompting banking sectors to reconsider how capital is allocated. For emerging economies such as Uzbekistan and Kazakhstan, efficient green financing is becoming a strategic necessity: both countries have set carbon neutrality targets for 2060, both face aging energy infrastructure, and both require private capital to modernize their economies.

Commercial banks are at the center of this transition. However, their green lending remains limited due to weak project pipelines, insufficient ESG integration, low awareness, and a limited range of regulatory incentives.

This thesis examines how commercial banks in Uzbekistan and Kazakhstan can improve the efficiency of green financing by drawing on theoretical concepts and successful international practices.