The World Bank has granted a $7.5 million tranche to Uzbekistan to mitigate the impact of energy tariff reforms on the socially vulnerable segments of the population.
According to the Ministry of Economy and Finance, the grant funds are allocated within the framework of the "Innovative Resources for Energy Sector Reforms" project, which is being implemented with the assistance of the World Bank, based on the decree of the President of Uzbekistan dated August 8, 2023.
These funds from the first tranche have been earmarked to soften the reforms included within the "Emission Reduction Purchase Agreement" (ERPA) component of the project, particularly to alleviate the effect of energy tariff reforms on the socially vulnerable layers and to provide them with material support.
The initial tranche funds count as a grant, returned to Uzbekistan in simulation of international greenhouse gas trading, for the reductions made in greenhouse gas emissions.
The allocated funds will be directed towards accelerating the transition to a green economy in the republic, establishing a greenhouse gas emissions monitoring system, supporting the newly created Energy Market Development and Regulation Agency and "Uzelektrosbyt" JSC, as well as implementing energy sector regulatory and institutional reforms, executing pilot projects to support socially vulnerable families through the provision of solar panels, and financing actions to enhance energy efficiency within the country.
