Uzbekistan news


Uzbekistan’s Green Economy Transition: Institutional Reform, Carbon Markets, and a New Growth Model

Uzbekistan’s Green Economy Transition: Institutional Reform, Carbon Markets, and a New Growth Model

In recent years, the Republic of Uzbekistan has embarked on a structured and institutionally grounded transition toward a green economy, positioning sustainability as a core driver of long-term economic resilience, competitiveness, and global integration.

This transformation reflects a comprehensive approach that combines policy reform, market-based instruments, and active international cooperation, enabling the country to move from strategic commitments to measurable outcomes.

The foundation of Uzbekistan’s green transition was laid through the adoption of a comprehensive policy framework in 2022, which established strategic priorities for green growth through 2030. This framework includes sectoral energy efficiency concepts, a national green growth program, and a detailed action plan.

Importantly, the government has set clear quantitative targets, including reducing the energy intensity of GDP by 20 percent by 2026 compared to 2022 levels. Institutional capacity has also been strengthened through the establishment of interagency coordination mechanisms and donor engagement platforms, ensuring coherent implementation across sectors. 

A major milestone in the reform process has been the introduction of a green energy certificate system, which enables verification that electricity is generated from renewable sources. This system has facilitated the development of a transparent renewable energy market and strengthened the ability of domestic producers to access environmentally regulated export markets.

To date, more than 446,000 green energy certificates have been issued and traded, reflecting growing demand for clean energy solutions and increasing private sector engagement.

Uzbekistan has taken a pioneering role in Central Asia in developing carbon market mechanisms. In cooperation with the World Bank, the country is implementing innovative approaches to carbon trading in line with Article 6 of the Paris Agreement.

Through initiatives such as the iCRAFT project, supported by the Transformative Carbon Asset Facility (TCAF), Uzbekistan is mobilizing up to $46.2 million in climate finance between 2024 and 2028. Initial results include the reduction of approximately 10 million tons of CO₂-equivalent emissions and the attraction of around $15 million in funding.

At the same time, regulatory frameworks for international carbon trading and emissions accounting are being developed, positioning Uzbekistan for full participation in global carbon markets. 

A key achievement has been the adoption of the Law on Limiting Greenhouse Gas Emissions in 2025, which establishes the legal foundation for emissions regulation, national registries, and climate policy instruments.

Complementing this, Uzbekistan has introduced a national transparency system to monitor progress toward its Nationally Determined Contributions (NDCs). This system enhances data reliability, strengthens accountability, and builds trust among international investors and development partners. 

Uzbekistan is actively developing a national green finance ecosystem aimed at mobilizing public, private, and international capital. Policy efforts include the development of green financing frameworks, institutional mechanisms, and project pipelines.

International partners play a critical role in this process. Cooperation with institutions such as the European Bank for Reconstruction and Development has enabled the implementation of green financing programs, including the Green Economy Financing Facility (GEFF), channeling substantial resources into energy efficiency and sustainable technologies.

Furthermore, Uzbekistan’s participation in the Climate Investment Funds Industrial Decarbonization Program provides access to up to $250 million in concessional financing, significantly expanding the scale of green investments. 

The transition to a green economy is closely linked to industrial modernization.

Uzbekistan is implementing targeted programs to support enterprises in adopting low-carbon technologies, improving resource efficiency, and enhancing competitiveness.

Partnerships with international organizations, including German development institutions, are facilitating policy development, capacity building, and practical support for small and medium-sized enterprises in reducing emissions and transitioning to sustainable production models.

Uzbekistan continues to strengthen its role in global climate governance through active international engagement. The country has joined the Global Methane Pledge, committing to reduce methane emissions by at least 30 percent by 2030.

Bilateral cooperation is expanding through mechanisms such as the Joint Crediting Mechanism (JCM) with Japan, as well as climate partnerships with the Republic of Korea, Germany, and Hungary under the Paris Agreement framework.

In addition, the Ministry of Economy and Finance has joined the Coalition of Finance Ministers for Climate Action, reflecting the integration of climate considerations into macroeconomic and fiscal policy. 

Digital transformation plays an increasingly important role in supporting green reforms. Uzbekistan has launched a national online platform that consolidates data on green projects, regulatory frameworks, and international practices.

This digital infrastructure enhances transparency, supports evidence-based policymaking, and improves coordination across institutions.

Uzbekistan’s transition to a green economy represents a comprehensive and forward-looking reform agenda that integrates institutional development, market mechanisms, and international cooperation.

The progress achieved to date demonstrates a clear shift from policy design to effective implementation. By strengthening governance frameworks, mobilizing green finance, and fostering global partnerships, Uzbekistan is building a resilient and sustainable economic model.

In the long term, the green transition is expected to serve not only as an environmental imperative but also as a key driver of economic growth, investment attractiveness, and deeper integration into the global economy.

Ministry of Economy and Finance

of the Republic of Uzbekistan

📅 20.04.2026

Uzbekistan news


Building Effective Transport Connectivity in the Context of Global Change
Uzbekistan as a Driver of Regional Connectivity: The Significance of the Termez Dialogue
A SHARED GENETIC CODE: THE REVIVAL OF THE CULTURAL AND CIVILISATIONAL HERITAGE OF CENTRAL AND SOUTH ASIA
The Termez Dialogue Sets the Course for Economic Integration with South Asia
Termez platform – dialogue for ensuring security and stability in Central and South Asia
The Termez Dialogue: Afghanistan as a Connecting Bridge Between Central and South Asia
Tashkent to Host Second Meeting of Termez Dialogue on Connectivity Between Central and South Asia on June 4–6
The “Uzbek Model” of Rehabilitation: Seven Years of “Mehr” Humanitarian Operations
Uzbekistan offers a deeply thought-out philosophy of integration to the international community
Uzbekistan and the EAEU: deepening practical cooperation amid global economic changes
ORGANIZATION OF TURKIC STATES: DYNAMICS OF DEVELOPMENT, ECONOMIC POTENTIAL AND STRATEGIC OPPORTUNITIES
TIIF-2026: Shaping a New Investment Architecture for Central Asia
Economic connectivity between Central and South Asia: a foundation for stability and sustainable development of the macroregion
The Termez Dialogue: A New Regional Architecture of Connectivity between Central and South Asia
The Termez Dialogue: From Connectivity to Shared Climate Resilience Dinara Ravilevna Ziganshina, SIC ICWC
TERMEZ DIALOGUE: FROM CULTURAL-HUMANITARIAN TIES TO BUILDING A SUSTAINABLE REGIONAL ARCHITECTURE
Smart Cities: How Uzbekistan and Azerbaijan Are Rethinking Urban Development
Central Asia’s Shared Experience of Compromise Is Increasingly in Demand Globally as a Practical Model for Preventive Diplomacy
The Termez Dialogue: From Connectivity to Shared Climate Resilience
TERMEZ DIALOGUE: FROM CULTURAL-HUMANITARIAN TIES TO BUILDING A SUSTAINABLE REGIONAL ARCHITECTURE
Nearly all initiatives put forward by the President of Uzbekistan at the OTS summit in Turkestan were practical in nature
The Termez Dialogue: A New Regional Architecture of Connectivity between Central and South Asia
Cities of the Future and the Strategy of New Uzbekista
Baku – WUF-13: Everyone deserves adequate housing and living in safe and sustainable cities
To Europe via the “Middle Corridor”: New Horizons for Uzbek-Azerbaijani Logistics Cooperation
From the INMerge Innovation Summit to Regional Hubs: How Uzbekistan, Kazakhstan, and Azerbaijan Are Building a Unified Startup Ecosystem
Uzbekistan and Azerbaijan strengthen economic partnership
Urbanization Processes in Uzbekistan: Legal Foundations, New Mechanisms, and Development Strategy
Improving Housing Conditions in Uzbekistan: The Role of Demographic Growth and Urbanization
Uzbekistan at the Center of Economic Integration in the Turkic World