Uzbekistan : Green economy support program

---

Eurasia and Beyond
Uzbekistan
Uzbekistan : Green economy support program
economie-verte-ouzbekistan
© Matthieu Tordeur
Facing major environmental challenges Uzbekistan wishes to implement a green economy policy with the support of AFD.
01/01/2022
Project start date
Uzbekistan
Location
Agriculture and Rural Development
Governance
sector(s)
Loan
Grant
financing tool(s)
150 000 000 EUR
Financing amount
Ministry of Economic development and Poverty reduction; Ministry of Finance; State assets management agency; State committee for
Ecology and Environmental protection; Uzhydromet
Beneficiaries
Context
Uzbekistan is one of the most vulnerable countries to climate change: 80% of its territory is considered grassland and desert areas and the
country’s average temperature has increased twice as fast as the global average since the 1950’s. Without additional adaptation measures,
climate change and resources overexploitation will decrease country’s economic potential (water scarcity and thus of hydroelectricity, soil
impoverishment threatening agri-food sector etc.) and its tourism potential.
Aware of the need of a more sustainable growth Uzbek authorities want to make the transition to a greener economy main emphasis of
their next development plan. Uzbek authorities have asked the support of AFD to prepare, finance and implement this new strategical
framework
Description
The transition to a greener economy is a long-term process. AFD’s program will be based on a 5 years period (2022-2026). During this
period, AFD will be financing a series of three concessional loans, the sums of which will be made available to the Uzbek Treasury
depending on the progress actively achieved.
A technical cooperation program will simultaneously support the Uzbek institutions in their formulation of strategical framework, its
translation in public finances (environmental tax, sustainable governance of public companies, green budget) and its translation in sectorial
policies and programs (renewable energies, water management, biodiversity).
The sub-program n°1 -first of the three loans- aims structural measures such as the adoption of the new strategical framework, the
implementation of fiscal measures to encourage clean transport or integration of environmental criteria in public procurement. This
funding will soon be complemented by European funds delegated to AFD.
Impacts
At the end of the sub-program n°1 (2022-2023), Uzbek authorities are expected to have a renewed action plan backed by a coherent
budgetary and fiscal strategy. This basis will allow them to carry on the transition to a more resource and carbon efficient model which is a
sustainable source of employment and growth for the Uzbek population.