News
Uzbekistan receives $250 million to boost its climate transition towards a green and sustainable economy
The Asian Infrastructure Investment Bank (AIIB) has approved $250 million in financing aimed at accelerating Uzbekistan’s climate transition. This project seeks to promote sustainable economic growth aligned with the national development strategy “Uzbekistan 2030” and the country’s climate commitments under the Paris Agreement.
The project aims to reduce greenhouse gas emissions per GDP unit by 35% by 2030 compared to 2010 levels. This commitment is part of Uzbekistan’s Nationally Determined Contribution (NDC).
Project Pillars
The financing will focus on three main areas:
- Strengthening Climate Governance: It will enhance institutional capacity and governance structures for more effective management and implementation of climate policies.
- Water and Land Resource Management: It will optimize the management of water and land resources, promoting economic resilience and environmental sustainability.
- Promoting Low-Carbon Solutions: It will boost energy efficiency and sustainable practices in key sectors such as energy and transportation, accelerating the adoption of low-carbon solutions.
The project also emphasizes the importance of transparency in sustainable development and climate risk disclosure, particularly in state enterprises. Additionally, renewable energy projects benefiting women and vulnerable communities will be prioritized.
Konstantin Limitovsky, AIIB Vice President for Investment Operations, highlighted the collaboration between AIIB, the Asian Development Bank (ADB), and the Government of Uzbekistan as a shared commitment towards sustainable development in Central Asia. Kanokpan Lao-Araya, ADB’s Country Director for Uzbekistan, emphasized the multidimensional challenges that climate change poses to the country’s economic progress.
The project will be led by Uzbekistan’s Ministry of Economy and Finance, with participation from key state institutions. AIIB and ADB will oversee its execution to ensure that objectives are met and aligned with broader development goals.
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