Tashkent, Uzbekistan (UzDaily.uz) — The European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) are launching a green finance programme in Uzbekistan to expand access to funding for environmental and climate-related projects by businesses and households.
Hamkorbank has become the first financial institution in Uzbekistan to join the programme. It will receive a financing package of up to US$20 million to support private-sector investments in climate change adaptation, energy efficiency and agricultural irrigation.
Financing will be provided either through a synthetic loan linked to the Uzbek soum or in US dollars. The funds will support projects across the country involving climate technologies and more efficient resource use.
The package comprises an EBRD loan of up to US$18 million and concessional financing of up to US$2 million from the Green Climate Fund. Projects supported by the programme are expected to reduce carbon dioxide emissions by approximately 5,685 tonnes annually.
The new initiative builds on the Uzbekistan Green Economy Financing Facility, previous phases of which were launched in 2018 and 2023. Together, these phases have established a US$160 million financing mechanism for green investments and supported 425 projects through five participating financial institutions.
Under the programme, businesses have gained access to financing for climate technologies, including energy-efficient equipment, electric vehicles, solar photovoltaic systems and solutions to reduce industrial emissions.
Nearly 10% of the supported projects were implemented by businesses owned or led by women.
According to the EBRD, previous phases of the programme have generated annual energy savings of approximately 1.1 million gigajoules and reduced carbon dioxide emissions by around 53,000 tonnes a year. The initiative has also supported the installation of more than 14.3 MW of renewable energy capacity and helped local financial institutions strengthen their expertise in green finance.
The Green Finance Systems Greening programme aims to expand climate financing and encourage Uzbekistan’s financial sector to adopt lending and investment practices aligned with climate objectives. Its priorities include more efficient water use, sustainable land management and improved resource efficiency.
Hamkorbank is Uzbekistan’s third-largest lender, according to the EBRD.
The EBRD has invested nearly US$7.3 billion in Uzbekistan through 219 projects, with a significant share of the funding directed towards supporting private businesses.
