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1THE GREEN ECONOMY IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT ISSUES: WORLD EXPERIENCE
Kurpaianidi,Konstantin Ivanovich
Professor, International Institute of Engineering and Food Technologies, Fergana, Uzbekistan E-mail :antinari@gmail.com https://doi.org/10.5281/zenodo.11002679
Abstract. The article explores the global experience of implementing the principles of the green economy to solve the problems of sustainable development. International practices and strategies aimed at balancing economic growth with environmental and social aspects are considered.
Keywords: green economy, sustainable development, world experience, environmental strategies, international practices.
Аннотация. Статья исследует глобальный опыт внедрения принципов зеленой экономики для решения проблем устойчивого развития. Рассматриваются международные практики и стратегии, направленные на балансирование экономического роста с учетом экологических и социальных аспектов.
Ключевые слова: зеленая экономика, устойчивое развитие, мировой опыт, экологические стратегии, международные практики.
Annotatsiya. Maqolada barqaror rivojlanish muammolarini hal qilish uchun yashil iqtisodiyot tamoyillarini amalga oshirishning ayrim davlatlar tajribasi o'rganilgan. Iqtisodiy o 'sishni yekologik va ijtimoiy jihatlar bilan muvozanatlashga qaratilgan xalqaro amaliyot va strategiyalar ko 'rib chiqiladi.
Kalit so'zlar: yashil iqtisodiyot, barqaror rivojlanish, jahon tajribasi, yekologik strategiyalar, xalqaro amaliyot.
The issue of improving the efficiency of functioning of the global and national economy, including Uzbekistan, is closely linked to the urgent need to address the problems of sustainable development based on the principles of green economy. Ecologisation of economic progress faces the formation of a new branch of scientific knowledge - green economy, where the root of the problem lies in the relationship between economy and ecology. Despite many attempts to clarify the relationship between economics, ecology and the essence of the green economy in the context of economic growth, there is no consensus on this issue.
The question of what the relationship between green economy and growth should be and whether the latter can effectively address social and environmental problems remains a matter of debate. The green economy can probably serve as a constraint mechanism to change current consumption and production patterns. There is also uncertainty about the alignment of the green economy with the current economic system, which emphasises the instability and inefficiency of its functioning within the current capitalist structure [1].
In the context of the Paris Agreement, Uzbekistan reaffirms its ambition to reduce greenhouse gas emissions per unit of GDP by 35% by 2030. To achieve these goals, the country has developed a Green Economy Transition Strategy for the period from 2019 to 2030. This strategy aims to improve energy efficiency by half, further expand the share of renewable energy
to 25% of total electricity generation, modernise industrial infrastructure with a focus on sustainability and increase energy efficiency by at least 20%, and introduce clean and environmentally friendly technologies and processes.
The green economy, which has emerged over the past two decades, is a branch of economic science based on the assumption that the economy is closely dependent on the natural environment within which it operates. Based on three axioms, including the impossibility of infinite expansion in a finite space, finite resources and the interconnectedness of everything on the Earth's surface, the theory of green economy emphasises that constant economic growth is not feasible, only constant economic development is possible. This concept attracts more and more attention of the society, is discussed by experts, politicians and non-governmental organisations [2].
The idea of green economy as a UN environmental programme was adopted in 2008. In order to reorient the world economy to a sustainable growth model, the principles of green economy should be implemented in structural reforms. Four main channels representing the effects of green economy formation and related structural reforms can serve as engines of economic growth and GDP increase.
First of all, the transition to a green economy implies an increase in inputs in the form of natural, physical and human capital (so-called "input effects"). This includes increasing the productivity of natural resources such as forests, fish stocks and agricultural land through better management of natural capital. It also includes improving the quality of human capital by reducing the morbidity associated with environmental improvements and reducing economic losses from physical capital through better management of environmental risks such as forest fires and floods [3].
Second, such a transition requires accompanying structural changes and major investments in key sectors such as energy, construction, housing and communal services, etc. The investments are aimed at upgrading production capacities, improving energy efficiency, transitioning to alternative energy sources and reducing greenhouse gas emissions. These investments are aimed at upgrading production capacities, improving energy efficiency, switching to alternative energy sources and reducing greenhouse gas emissions. These changes are expressed in the overall increase in the efficiency of the basic sectors of the economy (the so-called "efficiency effect").
Third, highlighted as an important growth driver, investment in green infrastructure such as water supply, sewerage systems and public transport using alternative fuel sources. These structural changes and large investments can stimulate economic growth, expand employment and reduce unemployment, especially in times of crisis. Here we talk about stimulus effects (so-called "stimulus effects").
Fourthly and finally, the transition to a green economy fosters innovation activity, including firm level, measured by R&D expenditure and patent activity. This process should be supported by a favourable competitive environment and regulation, including the introduction of standards and regulations. This aspect refers to so-called innovation effects.
The transition to a green economy emphasises the development of modern infrastructure as a key element of structural reforms for sustainable development. Infrastructure sectors, such as water infrastructure, land development, housing, road transport infrastructure, energy, etc., have a long-term use of the productive apparatus (20 to 200 years). Environmentally oriented modernisation of these sectors becomes fundamentally important given the long-term characteristics of the investments. Infrastructure sectors are also characterised by economies of
scale, network effects and synergies between economic, environmental and social objectives, which contribute to the efficiency of the corresponding investments.
Let us look at approaches to building a green economy in countries where this direction is a priority. South Korea, being a leader in this area, has adopted the concept of "green" growth as a national strategy. The main attention is paid to industry, energy, "green" modes of transport, alternative water sources, waste recycling technologies and development of coastal areas.
Currently, South Korea is continuing to build a green economy through the "Digital Transformation Master Plan" developed by the Ministry of Science, Information Technology and Future Planning in collaboration with academics and the business community. The digital transformation is combined with the Green New Deal, which aims to turn the country's economy into a zero-emission system. More than half of the financial allocations, including significant funds from the state budget, have been allocated to the implementation of this course, which includes 8 major national projects and job creation.
The plan, announced as a tool for post-co-visionary recovery and a strategy for building a digital economy, has three essential components: the Digital New Deal related to the digital transformation of society, the Green New Deal, and the strategy for innovation.
Most of the financial allocation, namely 73.4 trillion won, including 42.2 trillion won from the state budget, has been allocated to 8 national projects under the plan to build a digital economy. This strategic plan, presented by the South Korean government, is a tool for post-code economic recovery by focusing on the development of digital technologies and their integration into socioeconomic processes.
The Green New Deal aims to transform the country's economy into a zero-emission system, essentially a zero-carbon footprint economy. The Stronger Safety Net project aims to modernise and build more effective social safety nets to promote a fully inclusive society. The implementation of this plan is spread over five years with completion in 2025 and is divided into three phases: 2020, 2021-2022 and 2023-2025. The total investment for the 2020-2025 period is 160.0 trillion won, including a government allocation of 114.1 trillion won.
Under the 2025 plan, the South Korean government aims to implement 28 national projects, including 12 projects under the Digital New Deal, 8 projects under the Green New Deal, and 8 projects under the Robust Social Safety Net. The main objectives of this new government green programme include achieving zero greenhouse gas emissions, improving energy efficiency and reducing dependence on high-carbon fuel sources that have dominated the country's fuel and energy mix.
Priority areas for green development in the next decade include:
- Low carbon decentralised energy (green energy);
- Innovative green industry;
- Green Urban Economy.
An ambitious project to create "hydrogen cities" in South Korea has already begun, with three hydrogen cities built by 2022 and plans to increase the number to six by 2025. A creative step in realising the Green New Deal will be the prototyping of the world's first floating green city with autonomous functionality and minimal connectivity to the outside world.
The Master Plan for the Digital Transformation of the Republic of Korea's Economy from 2020 to 2025 is expected to demonstrate significant effectiveness in increasing employment and creating 1.9 million new high-skilled jobs by 2025. Specifically, the Digital New Deal will lead to
the creation of 903 thousand jobs, the Green New Deal contributes to the formation of 659 thousand jobs, and the Robust Social Safety Net will create 339 thousand people.
It is clear that the ambitious goals and measures in this plan, if successfully implemented, will strengthen South Korea's status as a leading innovation nation, enabling it not only to maintain its status but also to rise to a new level in the development of the digital economy. In this context, building a creative class, achieving sustainable development, and creating a new inclusive green community become the prospects for this project.
In the United States, the main strategic directions in the green economy are the development of alternative energy. The President of the country announced a plan for investment in clean technologies for the next decades, aimed not only at improving the environmental situation, but also at creating up to 5 million new jobs. The main focus is on energy production using solar installations, designed to meet 65 per cent of the country's energy needs, and heat at 35 per cent.
Almost all European Union countries are actively implementing "green" measures in various spheres, including energy, public transport, infrastructure, construction of environmentally friendly settlements, and recycling systems. The United Kingdom, in particular, is building its national strategy on the basis of the green economy, designed to create 100,000 new jobs.
China plans to increase the share of renewable energy in its total electricity consumption to 15 per cent by 2025, reducing the carbon intensity of its economy by 45 per cent. To this end, China is actively closing down environmentally inefficient companies and investing heavily in energy-saving and renewable energy sources. China's green technology initiative also embraces nanotechnology, highlighted by the opening of the Global Nanofibre Innovation Centre this year. This strategic focus is an unofficial goal of the Chinese Government to become a leader in green technology in the 21st century.
In light of the strategic reforms in Uzbekistan's economy to transition to a sustainable green model, it seems appropriate to express particular interest in this experience. In 2019, the Strategy for Uzbekistan's transition to an environmentally sustainable "green" economy was approved, under which it is planned to significantly reduce carbon emissions, introduce environmentally friendly and resource-saving technologies in various sectors of the economy, as well as the widespread use of renewable efficient energy sources.
The implementation of the tasks stated in the Strategy in the context of the New Uzbekistan Development Plan for 2022-2026, aimed at increasing the effectiveness of measures to ensure "green" and inclusive economic growth, is of particular importance [4]. This is facilitated by the Decree adopted by the President of the Republic of Uzbekistan on 2 December 2022 on increasing the effectiveness of reforms aimed at transitioning the country to a green economy by 2030.
The Programme on Transition to Green Economy and Sustainable Green Growth in the Republic of Uzbekistan until 2030, approved by this document, proposes to address the following strategic objectives:
- Reduction of greenhouse gas emissions by 35% from the 2010 level;
- Increasing the production capacity of renewable energy sources up to 15 GW and increasing their share in total electricity production up to 30 per cent and above;
- Increasing energy efficiency in industry by at least 20%;
- Reduction of energy intensity per unit of gross domestic product by 30 per cent, including through increased use of renewable energy sources;
- Increasing the efficiency of water use in all sectors of the economy, introducing water-saving irrigation technologies on an area of up to 1 million hectares;
- Expansion of green areas in cities up to 30% and above by planting at least 200 million trees per year and increasing their total number up to 1 billion;
- Increasing the household waste recycling rate to 65% and other measures [5].
Effective transition to a green economy means for Uzbekistan not only improving
macroeconomic indicators to pre-pandemic levels, but also striving for higher growth rates and increasing population size and income. In this regard, the country attaches particular importance to the use of renewable energy sources, building on its considerable potential in this area.
As a result of the research conducted, it was found that Uzbekistan, using hydrocarbon energy (oil, gas and coal), loses about 4.5 per cent of its gross domestic product from year to year. This circumstance leads to significant economic losses, especially given the obsolete nature of half of the energy capacities. Reconstruction or modernisation of these capacities requires significant financial investments. In light of this situation, the transition to "green" energy, in addition to its environmental benefits, appears to be an effective and economically feasible solution. This alternative path has already been chosen by the world community. Five years ago, the Strategy for Transition to Green Economy was adopted, confirming the correctness of the direction of development chosen by Uzbekistan. Uzbekistan has joined the ranks of countries oriented towards achieving the UN Sustainable Development Goals and fulfilling the commitments of the Paris Climate Agreement. Under these agreements, the country has committed itself to reducing harmful gas emissions by 10 per cent of 2010 levels by 2030. Both documents entail the obligation of national governments to fulfil the requirements of a green economy. The transition to this model inevitably raises both internal and external challenges of varying degrees of complexity. The Strategy has been developed taking into account the preparation and timely elimination of these challenges. First of all, it is necessary to audit national legislation before the transition to a green economy, to bring it in line with global standards and the standards of this model. Avoiding such mistakes, as experience shows, contributes to a smoother transition.
The second critical issue is the definition of financial instruments that the state plans to use in the process of transition to a green economy. In the initial stages, significant investments will have to be made in the sectors of the economy that require transition. Typically, incentives in the form of loans, subsidies, grants and tax breaks are provided to encourage businesses, organisations and communities to use alternative energy sources, reduce carbon emissions in production processes, implement green technologies and purchase appropriate equipment. It is very important that the financial system of the state supports these measures and banks actively support business projects aimed at achieving the UN Sustainable Development Goals.
An integral element of the plan is the identification of key economic sectors that will play a leading role in the transition to a green economy. It makes sense to invest in tourism and services, which can have a significant impact. There are additional opportunities in the engineering and automotive sectors.
The transition from a traditional economy to a green economy is of great importance for the sustainable development of the country, ensuring the preservation of the environment, guaranteeing food security and strengthening financial and economic independence. Global experience shows that a green economy promotes regional development, ensures social stability and increases economic potential by creating new jobs in green economy sectors. In Uzbekistan,
as in other countries, interest and support for the transition to a green economy is growing, as it contributes not only to economic progress, but also to an increase in gross domestic product, improved living standards and reduced unemployment. In addition, transition to a green economy contributes to mitigating global threats such as climate change, depletion of natural resources and water scarcity.
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