The Asian Development Bank will provide $250 million in policy interventions to support the Government of Uzbekistan’s efforts to strengthen the institutional framework for climate transition, enhance integration and alignment of climate change adaptation priorities, and accelerate climate change mitigation measures.
The Climate Transition Acceleration Program will support the Government of Uzbekistan in three reform areas: strengthening institutions and public financial management; enhancing climate resilience in water and land management, agriculture, and social protection systems; and accelerating the transition to a low-carbon economy in sectors such as transport and energy.
This program, which is ADB’s first programmatic response to climate change in Central Asia, is in line with the updated Nationally Determined Contribution (NDC), the 2030 Strategic Framework for the Transition to a Green Economy, and ADB’s Country Partnership Strategy for Uzbekistan 2024-2028.
“The program prioritizes decarbonizing the economy and building resilience to natural disasters and climate change, while supporting vulnerable populations,” said Evgeny Zhukov, ADB’s Director General for Central and West Asia. “Uzbekistan is among the world’s most energy-intensive economies, so the program will support the government’s efforts to reduce greenhouse gas emissions per unit of GDP by 35 percent by 2030. The reduction will be achieved through the development of renewable energy sources and energy efficiency.”
The Asian Development Bank has approved two loans to Uzbekistan totaling $400 million to implement large-scale reforms in the energy sector aimed at improving its efficiency and competitiveness, as well as developing the country’s financial markets.
ADB’s Director General for Central and West Asia, Evgeny Zhukov, said that the reforms supported by these programs will help create an enabling environment for regulators and companies to play their part in stimulating development by creating reliable domestic financial markets and meeting energy needs while fighting climate change.
ADB will provide $300 million to reform Uzbekistan’s energy sector, including creating a more effective governance structure, improving legislation, and attracting private investment.
To develop Uzbekistan’s financial market, ADB will provide $100 million to implement regulatory and institutional reforms aimed at improving market conditions to optimize financial transactions and services, and to increase supply and demand side measures to grow capital markets.
Uzbekistan joined ADB in 1995, and since then, the bank has provided $12.5 billion in loans, grants, and technical assistance to the country.
