THE ROLE OF AUDITING, FINANCIAL ACCOUNTABILITY, AND INNOVATION IN DRIVING GREEN ECONOMY GROWTH IN UZBEKISTAN

Abstract

Uzbekistan is on the path of a strategic transition to a green economy, which is reflected in its Green Economy Transition Strategy for 2019–2030 and its international climate commitments, made in accordance with the Paris Agreement. The transition requires green investments in areas like green bonds, renewable energy, and climate-smart agriculture. However, preventing greenwashing and maintaining investor confidence and trust in those investments is challenging, which complicates the transition to a green economy. Traditional financial auditing practice in Uzbekistan has focused on legal compliance and public financial accountability; however, this is not enough to fulfill the changing expectations of green finance. In response to this gap, the climate audit concept is emerging as a necessary consideration that bridges together traditional financial auditing, Environmental, Social, and Governance (ESG) standards, and the process of achieving Sustainable Development Goals (SDGs).

      This paper assesses the existing institutional arrangements for financial accountability in Uzbekistan, identifies systemic gaps, and considers innovations for supporting auditing and financial accountability. By utilizing international benchmarking, the research provides a recommended strategic roadmap to integrate climate audit mechanisms into the national financial control system. In addition to these contributions, this research also demonstrates how accountability frameworks can be innovated to support the country’s green economic growth. This study aims