Improving Investment Mechanisms for Financing Environmental Innovation Projects of Enterprises in the Context of the Transition to a Green Economy (Zenodo)

Summary

• The implementation of environmental innovation projects requires high initial investments, which complicates their financing and demands modern investment mechanisms like green investments, venture capital, and international financial institutions.p.2
• Academic literature highlights that public-private partnerships can help finance large investment projects in the transition to a green economy.p.3
• Green investments in Uzbekistan grew from 8.5 trln. so'm in 2020 to 21.3 trln. so'm in 2023, representing an increase of nearly 2.5 times.p.6
• The share of environmental projects in enterprise activities expanded from 12 percent to 24 percent.p.6
• Green investments experience high costs and low economic efficiency during their initial 1–2 years, but achieve very high economic efficiency after 10+ years.p.5
• Key recommendations include expanding government support mechanisms like tax incentives, subsidies, and grants to reduce the initial financial burden on green projects.p.7

Key insights

1. Environmental innovation projects are characterized by high initial investment costs and long payback periods, requiring non-traditional investment instruments.p.3
2. Developing mechanisms like green bonds, venture capital, and innovation funds can attract critical private and international capital to green projects.p.7
3. Green investments follow a multi-stage efficiency cycle, starting with high costs and low efficiency in years 1–2 before transitioning to low costs and very high efficiency after 10+ years.p.5
4. Public-private partnership mechanisms reduce investment risks and improve project effectiveness in ecological innovation.p.7
5. Developing institutional infrastructure such as technoparks and innovation centers accelerates the creation and deployment of environmental technologies.p.7
6. The volume of green investments in Uzbekistan increased from 8.5 trln. so'm in 2020 to 21.3 trln. so'm in 2023.p.6
7. The share of environmental projects grew from 12% to 24% over the observed recent period.p.6