Uzbekistan Plans Cash-for-Clunkers System for Old Vehicles

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan is proposing a sweeping vehicle recycling program that would impose annual eco-fees on aging cars, ban the continued use of the most polluting vehicles, and offer owners vouchers toward new purchases — with public consultation open until June 28.

The draft presidential decree, developed by the National Committee on Ecology and Climate Change, outlines a phased national system for scrapping end-of-life vehicles and processing their components. Its stated goals are reducing harmful emissions, improving environmental sustainability, and creating a structured mechanism for handling the country's growing stock of aging automobiles.

Rollout by stages

Implementation would proceed in three phases: passenger vehicles (category M1) fall under the system from 2026; minibuses, buses, and trucks (categories M2, M3, N1, N2, N3) follow in 2027; and all wheeled vehicles are covered from 2030 onward.

The eco-fee

Starting January 1, 2027, owners of vehicles aged 30 years or older would face an annual environmental compensation payment set at 30 base calculation units — equivalent to 12.36 million Uzbek soums. The draft simultaneously proposes banning the operation and re-registration of vehicles classified as environmentally hazardous, with such cars subject to deregistration. Antique and vintage vehicles would be exempt.

How scrapping works

Owners wishing to participate must first pass a technical inspection, then submit an application through an electronic platform for a vehicle assessment. Certified specialists would be required to complete the evaluation within five working days and issue a formal certificate. Following assessment, owners hand over the vehicle to a licensed system operator along with deregistration documents.

In return, compensation would be available in several forms: direct cash payments, electronic vouchers redeemable toward a new car purchase, or other legally defined mechanisms. Vouchers would carry a six-month validity period, with auto dealers obligated to apply the full voucher value as a discount; remaining costs could be paid in installments over more than one year.

Vehicles under ten years old may qualify for restoration and resale on the secondary market, or for export, provided they meet technical safety standards.

Green subsidies and market infrastructure

The program envisions a state support system for market participants. Assessors and operators would be eligible for "green" subsidies funded through recycling fee revenues, with financing tied directly to performance — based on the volume of vehicles assessed, scrapped, and recycled. Both assessors and operators would be selected through competitive tenders and must hold a positive state environmental assessment and meet established ecological standards.

The draft also emphasizes developing waste processing technologies and zero-waste manufacturing, including the production of secondary raw materials and finished goods from recycled components.