What is the "Greening industry" and why is it important?

Current industry can expect long-term and efficient productivity, as well as access to new markets for environmentally friendly products and a fast-growing market for "green" financing only with an incremental transition to "greener" projects. This was clearly demonstrated by the lessons of the COVID-19 pandemic.

May 6, 2021

Image: UNDP Uzbekistan

There are many reasons for this – from the rising cost and growing scarcity of fossil fuels, specifically natural gas, to serious measures regarding emissions.

The measures to be taken to encourage producers to search for and to implement «green» projects were discussed at an international online forum organized on March 3-4, 2021 by the UN Development Program and the Government of Uzbekistan along with a number of partners.

It is clear that manufacturers are obsessed with tendencies that bring profit, without which it is impossible to reproduce any economic process, either construction, chemical production and etc. And at this stage, the state should help entrepreneurs understand the profitability of investments in the "green economy". Indeed, if nothing is done today, it will be more difficult tomorrow to catch up with the economies of other countries, that have managed to free themselves from "carbon dependence". Keep using gas today (because of its ease and familiarity), means to have a constant increase in the cost of your products tomorrow, as the decreasing natural gas reserves will lead to its constant rise in price.

An example of how incentive opportunities can induce the implementation of "green projects" is already shown by the governments of other countries. These are incentives for producers, importers and exporters of environmentally friendly products and services, such as income tax and excise taxes exemption, subsidizing the interest rate on the loan and reduced VAT.

Moreover, domestic products produced within the framework of the "green economy" have wide opportunities for export. To this end, governments broaden such types of support as studying the needs of foreign markets and providing this information to domestic entrepreneurs, establishing a system of appropriate certification in the country that is recognized at the international level. All this expands the business's opportunities to access foreign markets, where production based on the "green economy" occupies a large niche year to year.

Such questions were raised during the online forum " Building Forward Better: A COVID-19 Green Recovery for Uzbekistan ". In particular, the participants noted that the Government of Uzbekistan could examine the setting up a system that encourages industry to direct financial, technological, managerial and human resources to reduce existing carbon-intensive assets and projects in favor of new low or zero carbon emissions.