AFD Allocates €230 Million for Uzbekistan’s “Green Economy”

Tashkent, Uzbekistan (UzDaily.com) — The third loan agreement under Uzbekistan’s “Green Economy” Program has been signed, providing budgetary support of €230 million, marking the largest such deal between the Agence Française de Développement (AFD) and Uzbekistan, AFD said in a statement.

Launched in 2021 with the support of the Government of Uzbekistan and under the guidance of the Ministry of Economy and Finance, the program aims to gradually transition the country toward a sustainable, inclusive, and climate-resilient economy.

Key results expected by the program’s completion in 2026 include:

• Allocating 10% of the national budget to projects with positive climate impact;
• Ensuring that 15% of public procurement becomes “green”;
• Increasing transparency and accountability, with several state-owned enterprises beginning to publish full ESG reports;
• Promoting a just transition by incorporating social assessments when setting new social tariffs for vulnerable populations.

The French agency noted that the series of three budget support operations demonstrates a strong partnership between AFD and Uzbekistan in advancing sustainable public policies.

The program also receives grant funding from the European Union, implemented through Expertise France, providing targeted technical assistance and facilitating knowledge exchange between Uzbek and European experts.

“With the third operation, AFD and its partners reaffirm their commitment to supporting Uzbekistan’s transition to a low-carbon, climate-resilient economy,” AFD emphasized.