Uzbekistan reports progress in shift to a green economy

Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan’s Economy and Finance Ministry has published the results of reforms carried out in 2022–2026 as part of the country’s transition to a green economy, covering legislative changes, international agreements and efforts to attract climate finance.

Legal framework for reforms

The reforms are based on Presidential Resolution No. PP-436 of 2 December 2022, “On measures to increase the effectiveness of reforms aimed at transitioning the Republic of Uzbekistan to a green economy.” The document approved a programme for the transition to a green economy and ensuring green growth through 2030, a concept for the industrial transition to a green economy and energy conservation, an action plan in this area, as well as targets for saving fuel and energy resources in 2022–2026. The targets provide for a 20% reduction in the energy intensity of manufactured products by 2026 compared with 2022. The composition of the Interagency Council for Coordinating Measures for the Transition to a Green Economy was also updated, and a Donor Coordination Group for this area was approved.

Green energy certificates

Uzbekistan developed a system of “green energy certificates,” introduced by Presidential Resolution No. PP-156 on 12 May 2023. The certificates confirm that products were manufactured using renewable energy sources. Producers of renewable energy sell the certificates to end consumers, including manufacturers and other consumers, guaranteeing the clean origin of the energy. The system also allows companies to increase exports of their products, as similar certificates are mandatory in the European Union, and attract green investment and loans from international financial institutions. To date, more than 446,000 certificates have been issued and put into circulation under the system.

Methane reduction commitment

At the initiative of the Economy and Finance Ministry, Uzbekistan joined the Global Methane Pledge in May 2022. Under the initiative, participating countries voluntarily committed to reducing global methane emissions by at least 30% by 2030 from 2020 levels. To implement the initiative, technical assistance worth US$1 million was secured from the European Bank for Reconstruction and Development (EBRD) to develop a national methane emissions reduction programme.

Cooperation with the World Bank on carbon trading

Together with the World Bank, Uzbekistan is implementing an innovative project under Article 6 of the Paris Agreement to establish international trading in greenhouse gas emission reduction units. The project has been described as the first carbon finance transaction in Central Asia and the World Bank’s first policy crediting programme of its kind globally. With financial support from the Transformative Carbon Asset Facility (TCAF), a World Bank trust fund that supports countries’ efforts to establish carbon pricing and attract private investment in low-carbon technologies, the iCRAFT project is seeking to attract US$46.2 million for 2024–2028. To date, the programme has reduced greenhouse gas emissions by 10 million tonnes of CO₂ equivalent and attracted US$15 million, with US$7.5 million received in each of 2024 and 2025.

Trading in emission reductions resulting from tariff reforms in the energy sector is being carried out under two components. Under an Emission Reduction Purchase Agreement (ERPA), a simulation of carbon trading is being conducted, with the units returned to Uzbekistan and a US$20 million grant allocated. Under a Mitigation Outcome Purchase Agreement (MOPA), the emission reductions are transferred in full and without compensation to the World Bank, with US$25 million allocated.

Partnership with Japan

The governments of Uzbekistan and Japan have agreed to launch the Joint Crediting Mechanism (JCM), a Japanese cooperation mechanism that finances up to 50% of projects introducing advanced technologies in developing countries to reduce greenhouse gas emissions. A memorandum of cooperation under the mechanism was signed in October 2022. In February 2025, the first official meeting of the joint JCM council was held, where rules and guidelines for project implementation were approved.

Long-term decarbonization strategy

Together with the World Bank and the EBRD, Uzbekistan has launched a project to develop a long-term strategy for decarbonizing the economy and transitioning to a green development model. The project includes the preparation of an investment plan outlining key measures and projects by sector, as well as the volume of investment required to achieve carbon neutrality. A draft presidential resolution, “On approval of the Strategy for Low-Carbon Development and Achieving Carbon Neutrality of the Republic of Uzbekistan through 2055,” prepared as part of the project, is being coordinated with relevant ministries and agencies.

Law on limiting greenhouse gas emissions

On 7 July 2025, Law No. ZRU-1073, “On Limiting Greenhouse Gas Emissions,” was adopted. The law provides for accounting of greenhouse gas emissions, the establishment of a state greenhouse gas inventory and carbon unit registry, the setting of sector-specific emission reduction targets, and mechanisms for state support of relevant activities.

Private-sector support and digital platform

Together with a German development cooperation organization, Uzbekistan is implementing the “Private Sector Promotion and Policy Advice in Uzbekistan” project, worth 12 million euros and covering 2023–2028. The project provides for training 80 employees of ministries and agencies, including 30 women, in green industrial policy; support for relevant ministries in developing four strategic documents; and assistance to 25 small and medium-sized enterprises, including three women-led businesses, in reducing CO₂ emission intensity by at least 10%.

An online green economy platform, green.imv.uz, has also been created. It brings together information on the legislative framework, ongoing and planned activities, international best practices and other aspects of green growth.

International coalitions and assessments

In 2023, the Economy and Finance Ministry joined the Coalition of Finance Ministers for Climate Action, which operates on the basis of the Helsinki Principles. These include aligning policies with the commitments of the Paris Agreement, exchanging experience on climate change, measures to establish effective carbon trading, incorporating climate factors into macroeconomic policy and public procurement, mobilizing private sources of finance, and participating in the preparation of nationally determined contributions (NDCs).

Together with the World Bank, Uzbekistan implemented and published the Climate Change and Development Report (CCDR), a national assessment designed to evaluate the impact of climate change on the economy and help attract accessible international green finance.

Carbon trading regulation and national contributions

Cabinet of Ministers Resolution No. 117 of 7 March 2024 approved temporary regulations governing international greenhouse gas trading projects. The regulations establish procedures for organizing such projects and will remain in effect until a national procedure is approved for implementing the sustainable development mechanism under Article 6 of the Paris Agreement, signed in Paris on 12 December 2015.

Presidential Resolution No. PP-213 of 5 June 2024 approved a draft resolution on measures to introduce a national transparency system for Uzbekistan’s transition to a green economy, covering all levels of greenhouse gas emissions. The system makes it possible to assess measures and results related to achieving nationally determined contributions and is also intended to strengthen the confidence of donors and investors.

In accordance with its commitments under the Paris Agreement, Uzbekistan has developed and submitted its nationally determined contributions, NDC 1 and NDC 2, to the UN Framework Convention on Climate Change. In 2025, an updated version, NDC 3.0, was prepared and submitted jointly with the Ecology Ministry.

Financing and international recognition

Uzbekistan applied to participate in the Climate Investment Funds’ (CIF) industrial decarbonization programme and was among six countries with the strongest results, opening the possibility of attracting a US$250 million concessional loan.

Presidential Decree No. UP-110, “On measures to participate in the international carbon unit market,” was adopted, on the basis of which a draft Cabinet of Ministers resolution on improving the greenhouse gas inventory is being developed.

An agreement has been reached for the Korean agency KOICA to provide a US$8.5 million grant in 2026–2030 for a project supporting Uzbekistan’s implementation of the Paris Agreement and joint action with the Republic of Korea under Article 6 of the agreement.

As part of a project to promote Uzbekistan’s decarbonization strategy and cooperation on the transition to a green economy, US$200 million in credit financing has been secured. Through the third phase of the Green Economy Financing Facility (GEFF), local banks are using the funds to provide green loans to businesses. An agreement has been reached with EBRD representatives on the possibility of increasing the project’s credit financing to US$300 million.

A draft presidential decree approving a national programme to improve the green finance system is being developed and coordinated with ministries and agencies. The programme provides for the establishment of a National Green Economy Fund under the Green Economy Projects Centre being created within the Economy and Finance Ministry.

International exhibitions and bilateral cooperation

At the Eco Expo Central Asia 2025 international exhibition held in Tashkent, the Economy and Finance Ministry organized a Green Economy and Green Finance pavilion with the participation of representatives of the World Bank, EBRD, Asian Development Bank, German development cooperation agency, National Energy Efficiency Agency, Mortgage Refinancing Company, and commercial banks SQB and Agrobank. Following the exhibition, the ministry ranked first among participating agencies for the best pavilion.

On 15 September 2024, following negotiations between Uzbekistan and Germany, the Economy and Finance Ministry of Uzbekistan and Germany’s Federal Ministry for Economic Affairs and Climate Action signed a memorandum of understanding on cooperation under Article 6 of the Paris Agreement. The memorandum is aimed at reducing greenhouse gas emissions and strengthening capacity to adapt to the effects of climate change.

At the ministry’s initiative, a draft climate cooperation agreement was developed with relevant agencies of the Republic of Korea. As a result, the governments of the two countries signed a framework agreement in Tashkent in June 2023, which was approved by Presidential Resolution No. PP-339 of 19 October 2023. The agreement is aimed at developing cooperation on combating climate change, introducing advanced Korean technologies, organizing emissions-reduction trading and developing cooperation on the transition to a climate-resilient, low-carbon economy.

During the official visit of the President of Uzbekistan to Hungary on 19–20 May 2025, the governments of Uzbekistan and Hungary signed a framework agreement on cooperation under the Paris Agreement on 20 May.