Uzbekistan Receives Second Grant Tranche under iCRAFT Project

Tashkent, Uzbekistan (UzDaily.com) — As part of the joint project with the World Bank titled "Innovative Carbon Resource Application for Energy Sector Reforms" (iCRAFT), the Republic of Uzbekistan has received a second grant tranche amounting to US$7.5 million.

This tranche was issued under an Emission Reductions Purchase Agreement (ERPA) and compensates for 500,000 tons of greenhouse gas emissions reduced in Uzbekistan in 2023, out of a total verified volume of 6.328 million tons. The payment was made through a simulated international carbon market transaction, marking an important step in developing innovative climate finance mechanisms in the country.

It is worth noting that in 2024, Uzbekistan received an initial US$7.5 million grant as part of the first tranche under the iCRAFT project. With this second disbursement, the total grant support attracted by Uzbekistan under the program has reached US$15 million, reinforcing the country’s sustainable development strategy.

The iCRAFT project is the world’s first initiative implemented under a policy-based lending model aimed at reducing greenhouse gas emissions through energy sector reforms. The project positions Uzbekistan as a pioneer in Central Asia in establishing a presence on international carbon markets.