The World Bank (WB) presented a new working paper on green economy development in Europe and Central Asia (ECA).

As the authors note, climate change has a long-term negative impact on economic growth in the region. It is estimated that by 2050, Uzbekistan's GDP will decrease by 10% under the influence of the climate factor. Key problems include high dependence on raw materials and the carbon footprint of the region’s economies. In 2020, ECA accounted for 9.5% of global emissions. ECA is among the world's largest per capita carbon emitters, with 6.9 metric tons of CO2 per capita in 2020 (60% of the global average).

The energy crisis of 2022, accompanied by rising energy prices and declining economic dynamics, has highlighted the need to diversify energy supply sources and significantly reduce dependence on imported fossil fuels. Ensuring energy security requires further decarbonization of the economy: the development of renewable energy sources, increasing the energy efficiency of the economy and improving the regulation of energy policy.

WB recommendations include:

1. Pricing reforms to address market failures. In a number of ECA countries, the prices domestic consumers pay for electricity and natural gas do not cover costs
2. Reduce or phase out energy subsidies
3. Supporting vulnerable populations to eliminate fossil fuel subsidies
4. Use of various tax instruments to stimulate the green transition
5. Tightening requirements for energy efficiency and technological modernization of infrastructure
6. Decarbonization of transport, support for the development of electric transport
7. Reducing administrative barriers and increasing the transparency of government administration to attract additional investment
8. Development of professional competencies in the field of green economy.