DIRECTIONS FOR THE DEVELOPMENT OF COOPERATION BETWEEN UZBEKISTAN AND THE SHANGHAI COOPERATION ORGANIZATION (SCO) IN THE FIELD OF GREEN ECONOMY

SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 10 OCTOBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 16 DIRECTIONS FOR THE DEVELOPMENT OF COOPERATION BETWEEN UZBEKISTAN AND THE SHANGHAI COOPERATION ORGANIZATION (SCO) IN THE FIELD OF GREEN ECONOMY A. Vakhabov1, Sh. Khajibakiev2, N.O. Orolov3 Professor, Doctor of Economic Sciences, Head of the “Macroeconomics” Department, National University of Uzbekistan named after Mirzo Ulugbek1 Senior Lecturer, “Macroeconomics” Department, Mirzo Ulugbek National University of Uzbekistan2 2nd-Year Student, Economics Track, Tashkent State University of Economics, Academic Lyceum of “International Finance”3 https://doi.org/10.5281/zenodo.17315691 Abstract. This article assesses the efforts of Uzbekistan, the People's Republic of China, a member of the SCO, to develop green energy within the framework of the Green Development Program, the transition of energy security to a green economy model, the status of investment projects implemented through public-private partnerships (PPPs) in the field of renewable energy, and identifies trends in the composition and capacity of renewable energy sources. Keywords: green economy, green energy, Green Development Program, renewable energy, alternative energy, green belt, energy policy. Introduction It is widely acknowledged that the Green Development Program adopted in Uzbekistan is aimed at transforming and digitalizing economic sectors, creating sustainable infrastructure in the transport and energy sectors, launching green industrial capacities, and developing smart agriculture. In particular, President Shavkat Mirziyoyev has signed a decree on the implementation of the Green Development Program. Mirziyoyev stated that "...the sustainable development of the Central Asian region is impossible without attracting investment and technology to the alternative energy sector and establishing green hydrogen production. We are taking serious steps to ensure that Central Asia, rich in renewable energy sources, becomes a major exporter of green energy to global energy markets. We will transform Central Asia into a hub for the green economy and clean energy," the statement reads [1]. The SCO is a regional international organization established in 2001 with the accession of the Republic of Uzbekistan to the organization known as the "Shanghai Five." The SCO's stated priorities include strengthening security and stability, combating terrorism, separatism, extremism, and drug trafficking, and developing scientific and cultural cooperation. The SCO's activities are not limited to political and military issues. Economic cooperation is successfully developing within the organization. The organization's economic cooperation is based on the free movement of goods, capital, services, and technology; the creation of favorable conditions for trade and investment; the efficient use of existing transport and communications infrastructure; the further expansion of member states' transit capacities; and the development of the energy system. From an economic perspective, strengthening and developing cooperation in the energy sector is an attractive factor SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 10 OCTOBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 17 for SCO membership. In particular, many Asian countries have expressed a desire to participate in the SCO Energy Club. It has been extensively documented that theoretical and practical aspects of ensuring sustainable development based on the development of a "green economy" have been thoroughly studied in the scientific research of foreign economists A. Atkinson, A. Steiner, R. Iris, S. Bess, K. Burkart, Z. Kees, and R. Fuchs[4,5,6,7,8]. The principles of transition from a "brown economy" to a "green economy" and the mechanism and levers for financing national programs are closely linked with the works of foreign scientists S.N. Bobylev, V.D. Kalner, V.A. Polozov, S.A. Lipina, E.V. Agapova, A.V. Lipina, and V. Sidorovich[9,10,11,12]. The need for the development of "green energy" in our country, its status, composition, and current development issues are studied in the works of domestic economists A.V. Vakhabov, Sh.A.Toshmatov, T.K.Iminov, T.Z.Teshaboev, M.T.Butaboev, Sh.H.Khadzhibakiev [13,14]. Research Methodology In analyzing the consumption of renewable energy sources, the study utilized inductive and deductive methods, systems analysis, comparative analysis of methodologies from various international and non-governmental organizations, tables, and graphs. The analysis and results Uzbekistan prioritizes the development of multi-vector international cooperation toward "green" development. The SCO, other regional organizations, and developed countries play a key role in implementing reforms toward "green" development. In particular, the SCO's international influence is growing, and it is becoming a leading organization in addressing global challenges. According to the World Bank, by 2024, the area of the SCO member states will comprise 65% of the Eurasian continent and 35 million square kilometers. Their population is over 3.5 billion, and their gross domestic product is 33.7% of the global gross domestic product at constant prices. Coordinating monetary policy, ensuring sustainable growth, energy security, and a green economy are among the pressing issues addressed at SCO summits. We believe that jointly addressing these issues is crucial for member states in minimizing external risks and creating a balanced model of sustainable development. It should be noted that development based on a green economy not only provides the foundation for future sustainable development but also creates opportunities for economic prosperity. Most SCO member states face challenges such as climate change, water scarcity, energy security, and environmental pollution. In this regard, it is worth noting the Environmental Performance Index (EPI), which is used to assess the environmental status of countries. This rating simultaneously evaluates the quality of a country's environmental policy, the economic impact on the environment, and areas related to public health. The EPI consists of criteria used to assess the health of the environment and ecosystems. While environmental health criteria determine the degree of protection of a country's population from environmental health risks, a second set of criteria assesses the state of ecosystems. In the EPI rating published in 2024, only Belarus scored above 50 points out of 100 among SCO countries. This demonstrates that the green economy is a practical tool for achieving sustainable development, ensuring energy security, protecting the environment, and addressing environmental issues discussed within the SCO (Figure 1). The above issues directly impact the economies, social stability, and security of countries in the region and are becoming even more pressing in the context of global climate change, which is leading to negative consequences. First, humanity faces a serious challenge related to the availability of clean and safe drinking water. With population growth, accelerated urbanization, SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 10 OCTOBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 18 climate change, and water pollution, access to clean drinking water is becoming increasingly limited. According to international organizations, global water consumption could increase by 1.5 times by 2050, further exacerbating water shortages. Second, energy security is an important area discussed within the SCO, crucial for achieving the Sustainable Development Goals and increasing energy consumption. Figure 1. SCO Member States' Position in the Energy Security Index (EPI), 2024 [17] Member states are paying particular attention to the practical aspects of cooperation between energy producing, transit, and consuming countries. The SCO Strategy for Energy Cooperation until 2030, adopted by the SCO member states, defines priorities for modernizing cross-border infrastructure and ensuring energy security. The findings indicate that ensuring energy security through the transition to a green economy model is a priority for Uzbekistan. In particular, in his speech at the Fourth Tashkent International Investment Forum, President of the Republic of Uzbekistan Shavkat Mirziyoyev noted that "...we are firmly committed to developing green energy to provide our economy with sustainable energy resources. Over the past short period, nearly $6 billion in foreign direct investment has been invested in this sector. Electricity production has increased from 59 billion to 82 billion kilowatt-hours. Over the next five years, this figure will exceed 120 billion kilowatthours, and the share of green energy will reach 54 percent" [2]. Thirdly, the development of advanced, resource-saving, energy-efficient, and green technologies. These technologies make it possible to significantly reduce greenhouse gas emissions, mitigate anthropogenic damage to the environment, and improve living standards and well-being. In this regard, SCO cooperation programs in the field of renewable energy are being implemented. The development of a comprehensive plan for the implementation of high technologies and the stimulation of investment in the renewable energy sector is planned for the future. In 2024, a joint plan for the implementation of the Green Belt program in the SCO for 2024–2026 was developed and is being implemented. Fourth, the negative consequences of climate change, as a global problem, have begun to seriously impact the sustainable development of humanity. Addressing this problem requires joint action by the international community based on the principles of the UN Framework Convention on Climate Change. To achieve this, it is necessary to put society and the economy on a path to sustainable, inclusive development. In the SCO countries, taking into account the natural and 58.2 47.8 46.7 42.8 42.6 41.8 35.4 32.3 27.6 25.5 0 10 20 30 40 50 60 SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 10 OCTOBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 19 climatic conditions and socioeconomic factors of individual countries, the rate of air temperature increase by 2050 could range from 1.5°C to 4°C. According to forecasts by scientific research organizations, by 2050 the average annual air temperature is expected to be at the level of: in Belarus - 2 °C–2.5 °C; in Iran - 2.6 °C; in India - 1.2 °C–3.5 °C; in Kazakhstan - 2 °C–3 °C; in China - 2.2 °C; in Kyrgyzstan - 4.5 °C; in Russia - 3.5 °C; in Pakistan - 1.3 °C–1.5 °C; in Tajikistan - 2 °C; in Uzbekistan - 2 °C. Taking into account the above circumstances, a special working group to combat climate change was created within the SCO in 2024. It's no coincidence that energy is a priority among issues discussed within the SCO. The SCO includes major countries with significant energy resource suppliers, consumers, and transit potential. Therefore, the adoption of the Concept of Cooperation in the Energy Sector and the holding of energy ministerial meetings once again confirm the priority of this area. Most SCO countries are among the top ten globally in terms of energy intensity, greenhouse gas emissions, and carbon emissions per unit of energy consumed. While global energy consumption per unit of gross domestic product decreased from 0.170 kg US dollars to 0.110 kg US dollars between 1990 and 2024, in our country this figure fell from 0.689 kg US dollars to 0.153 kg US dollars. Thus, the energy intensity of Uzbekistan's gross domestic product remains above the global average. This figure in our country is twice as high as in countries such as the United Kingdom, Italy, Turkey, Spain, and Germany. Despite a sharp decline in the carbon intensity of Uzbekistan's economy, it remains 1.5 times higher than the global average (Table 1). Table 1. Energy efficiency indicators of the Uzbekistan economy, 2024 [16] Energy capacity of GDP, kg (n.e.)/dollar. The amount of SO2 emitted to the account of consumed energy, t(SO2)/t.n.e. SO2 intensity, t(SO2)/15doll. The share of electricity consumption in the final energy consumption, % The share of renewable energy in the country's energy balance, % Kuwait 0,250 EARTH 3,31 Kuwait 0,562 Nigeria 1,8 Kuwait 0,2 Iran 0,213 Kazakhstan 3,16 EARTH 0,548 Iran 12,0 Saudi Arabia 0,5 Qatar 0,206 Vietnam 3,08 Iran 0,501 Russia 13,0 Algeria 0,7 Russia 0,205 Australia 2,77 Kazakhstan 0,425 Algeria 13,3 Iran 5,3 EARTH 0,166 China 2,75 Russia 0,404 Kazakhstan 13,8 Singapore 5,7 Canada 0,163 Indonesia 2,7 China 0,402 Indonesia 13,9 UAE 8,3 Saudi Arabia 0,159 India 2,65 Taiwan 0,372 Uzbekistan 14,5 Republic of Korea 9,5 Uzbekistan 0,153 Poland 2,65 Qatar 0,370 Romania 14,7 EARTH 10,1 Taiwan 0,152 Algeria 2,48 Uzbekistan 0,347 Poland 15,8 Uzbekistan 10,9 China 0,146 Taiwan 2,44 Saudi Arabia 0.343 Belgium 17,2 Indonesia 11,6 Kazakhstan 0,134 Malaysia 2,42 Vietnam 0,322 Saudi Arabia 17,3 Egypt 12,0 Republic of Korea 0,123 Philippines 2,39 Canada 0,281 Czech Republic 17,5 Taiwan 12,1 Uzbekistan 2,27 There is substantial evidence to suggest that the essence of the energy policies implemented by SCO members, it is necessary to consider regional specifics. In particular, despite the projected growth in demand for electricity and other forms of energy, the transport system, including the national railway network, is not fully developed in Kyrgyzstan and Tajikistan. Another specific feature is the dependence on low-carbon development goals (Uzbekistan, China). The priority and SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 10 OCTOBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 20 focus of this policy is on increasing the share of renewable energy sources in the country's energy balance, improving energy efficiency, and reducing energy losses. The stratification of SCO member states by level of economic development and the uneven distribution of energy resources further reinforce the need to utilize best international practices to attract foreign investment in the sector, modernize existing energy infrastructure, and build new ones. According to the International Renewable Energy Agency (IRENA), despite the implementation of significant green energy transition projects by Central Asian countries between 2015 and 2024, the energy sector remains in the "red zone." Some countries in the region (Uzbekistan, Kazakhstan) are taking a systemic approach to developing renewable energy sources, while others are implementing individual local projects. The installed capacity of renewable energy sources in the region in 2024 was 19,583 MW, an increase of 47% compared to 2015 (Figure 2). Figure 2. Renewable Energy Capacity Dynamics in Central Asian Countries, MW [15] China, one of the largest members of the SCO, is known for its successful energy sector reforms aimed at transitioning to green technologies. According to the National Climate Center of China, the country's installed solar and wind power capacity will reach 1.25 billion kW in 2024. Thus, the Chinese government has fulfilled its commitment to increase renewable energy capacity to 1.2 billion kW by 2030, adopted at the Climate Ambition summit, six years ahead of schedule. China has become the largest investor in the energy sector, investing an amount close to the combined investment of the United States and the European Union. Specifically, the share of Chinese investment in clean energy has increased from 25 percent to almost a third. This was achieved through large-scale investments in solar, wind, hydroelectric, and nuclear power, batteries, and electric vehicles. According to analytical forecasts, electricity consumption in Uzbekistan is expected to increase by 1.7 times compared to current consumption by 2035. To meet growing demand, longterm energy sector development programs have been adopted. Implementing these programs will require $4 billion in investment in the National Electric Grid. From 2017 to 2025, electricity generation in our country increased by 38 percent, reaching 81.5 billion kWh. According to expert estimates, electricity demand will reach 117 billion kWh in five years, and 135 billion kWh by 2035 [18]. China is one of Uzbekistan's largest foreign trade partners. Investments from China are primarily directed into the energy, infrastructure, transport, and industrial sectors. In particular, trade between the two countries exceeded $12.4 billion in 2024, thanks to the implementation of 2807 1882 3677 4957 1 5419 5166 3258 5738 2 193.1 274.5 88.6 115.8 200.0 0.0 50.0 100.0 150.0 200.0 250.0 300.0 0 1000 2000 3000 4000 5000 6000 7000 Қозоғистон Ўзбекистон Қирғизистон Тожикистон Туркманистон 2015 2024 Ўзгариш, % SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 10 OCTOBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 21 major transport and logistics projects. Moreover, China's direct investment in Uzbekistan has exceeded US$10 billion. As of August 1, 2025, a total of 4,250 enterprises with Chinese investment were operating in our country. They effectively operate in sectors such as energy, telecommunications, transport, mining, textiles, and digital infrastructure [19]. In addition, Chinese companies are actively participating in green energy programs in our country. Solar power plants have been launched in the Bukhara, Kashkadarya, Samarkand, and Jizzakh regions, which together produce more than 1.5 gigawatts of clean energy. In particular, the Resolution of the President of the Republic of Uzbekistan dated April 30, 2025, on measures to implement the investment project "Construction of a 500 MW solar photovoltaic power plant and an overhead power line in the Farish district of the Jizzakh region" marked another step in the development of the sector. In accordance with the Resolution, China Electrical Equipment International Co. LTD and China Huadian Overseas Investment Co. LTD are implementing a CNY 2.08 billion investment project to build a 500 MW solar photovoltaic power plant and an overhead power line in the Farish district of the Jizzakh region [3]. According to IRENA, the total installed capacity of renewable energy sources in Uzbekistan increased from 1,900 MW to 5,200 MW between 2015 and 2024, a 2.7-fold increase, while the share of renewable energy sources in the country's electricity potential increased from 14.2% to 24.4% (Figure 3). Figure 3. Dynamics of Renewable Energy Capacity in Uzbekistan, MW [15] In our country, green projects are financed through public-private partnerships. According to the International Monetary Fund, over the past three years, the value of projects implemented through public-private partnerships has grown from $6.2 billion to $31 billion. From 2019 to 2024, more than 90% of projects were in the energy sector, driven by the significant investments required to modernize and commission key, critical infrastructure facilities within a short timeframe. According to forecasts, transport, housing and utilities, and education will be the top priority in the structure of new projects implemented through public-private partnerships in 2025–2030. Specifically, electricity generated by a 500 MW solar photovoltaic plant in the Farish district of the Jizzakh region will be purchased by Uzenergosbyt JSC on a guaranteed basis for 25 years [3]. While public-private partnerships allow for external financing, management, and risk sharing, rigorous and thorough monitoring of project stages, from planning to implementation, is essential. This is due to risks that may arise during project implementation, such as government 5166 2391 501 2275 24.4 1882 1880 0 1 14.2 0 1000 2000 3000 4000 5000 6000 Тикланадиган энергия манбаларининг умумий қуввати Гидроэнергия Шамол энергияси Қуёш энергияси Тикланадиган энергия манбаларининг улуши, % 2015 2024 SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 10 OCTOBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 22 guarantees, product procurement within the scope of commitments, or unforeseen budget expenditures in the event of project bankruptcy. It is generally accepted that government guarantees help attract investors, but can also lead to serious financial problems. For example, if a toll road fails to generate sufficient funds, the government will have to cover the difference from the budget. A similar situation could arise with electricity or water supply. Conclusions and suggestions When developing "green energy" as a priority area for the transition to a "green economy" in the SCO countries, special attention should be paid to the following factors. 1. Developing an institutional framework for the implementation of green technologies. Specifically, it is necessary to assess technological needs, prioritize and select advanced technologies, and facilitate their development/transfer. It is necessary to develop a mechanism for the commercialization of green technologies and create organizational structures to support innovation activities – technology supply agencies, technology business incubators, technology parks, and clusters. 2. Developing a mechanism for regulating and monitoring energy efficiency. Specifically, developing a differentiated tariff system for the guaranteed purchase of surplus electricity generated for on-site use at newly commissioned solar, wind, and biogas power plants, as well as microand small hydroelectric power plants. 3. Increasing capacity and creating favorable conditions for the transition to green energy. Ensure ongoing monitoring of the fulfillment of quantitative commitments under the Paris Agreement, establish a monitoring, accounting, and verification (MRV) system for greenhouse gas emissions, taking into account national conditions, and ensure reporting on greenhouse gas emissions. Develop the potential of public-private partnerships to implement green technologies in the energy sector; Assist private investors in implementing green innovations; and develop a mechanism to stimulate public green procurement by introducing a certification system for energy and resource efficiency of products. 4. Support investment in the green energy sector: implement a system of green lending and venture financing; create green funds, special energy efficiency funds, and other similar mechanisms; Activate the private sector in financing green energy transition projects. 5. China's competitive prices in the international clean energy market create enormous opportunities for Uzbekistan. Thanks to its affordable green technologies and favorable pricing policies, China can become a strategic partner for Uzbekistan in the energy sector. A balanced approach is needed. That is, on the one hand, it is necessary to develop local production potential, train personnel, and implement a green economy transformation based on technology localization, while simultaneously importing green technologies. It has been shown through analysis that the proposed measures will enhance the competitiveness of the national economy and improve the quality of life of the population, while simultaneously creating the opportunity to transition to a sustainable development path based on a green economy. Greening the national economy will contribute to increased exports of highvalue-added products through the advanced processing of natural resources, diversification of product ranges, and increased competitiveness of national companies in foreign markets. REFERENCES SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 10 OCTOBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 23 1. Speech by the President of the Republic of Uzbekistan Shavkat Mirziyoyev at the ninth annual meeting of the Board of Governors of the Asian Infrastructure Investment Bank. https://president.uz/uz/lists/view/7570 2. 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