AIIB approves $250M financing to accelerate Uzbekistan’s climate transition

The Asian Infrastructure Investment Bank (AIIB) has approved $250 million in financing to support the acceleration of Uzbekistan’s climate transition towards a green, inclusive, and resilient economy. This initiative represents a significant milestone in Uzbekistan’s efforts to strengthen climate resilience and promote sustainable economic growth in alignment with its "New Uzbekistan 2030" development strategy and updated Nationally Determined Contribution (NDC), which commits to reducing greenhouse gas emissions per unit of GDP by 35% below 2010 levels by 2030.

The program will focus on three interconnected pillars aimed at driving sustainable development. Firstly, it will enhance climate-related governance frameworks to integrate climate considerations into national decision-making processes, thereby strengthening institutional capacity and governance. Secondly, it will focus on improving water and land resource management to mitigate climate risks while fostering economic sustainability and ensuring the resilience of vital resources. Lastly, the program will accelerate the transition to low-carbon solutions in key sectors such as energy, transport, and e-mobility, prioritizing improvements in energy efficiency and the adoption of sustainable practices.

Furthermore, the program will emphasize the adoption of sustainability and climate risk disclosure practices for state-owned enterprises and the expansion of renewable energy initiatives, benefiting women and vulnerable communities.

“This partnership between AIIB, ADB, and the Government of Uzbekistan underscores our collective commitment to sustainable development in Central Asia,” said Konstantin Limitovskiy, AIIB Vice President for Investment Clients Region 2 and Project and Corporate Finance. “By incorporating climate priorities into economic planning, enhancing adaptation measures, and driving decarbonization in critical sectors such as energy and transport, the program plays a pivotal role in supporting Uzbekistan’s efforts to implement its 2030 national strategy and meet its Nationally Determined Contribution under the Paris Agreement.”

“Climate change poses long-term multi-dimensional and multi-sectoral challenges to the sustainability of Uzbekistan's economic progress,” said Kanokpan Lao-Araya, ADB Country Director for Uzbekistan. “ADB collaborates closely with AIIB on this program to support an integrated approach towards achieving resilient, inclusive, and low-carbon economic growth in the country. It also contributes to creating an enabling environment and institutional setup for climate change actions, strengthening climate change adaptation priorities, and accelerating climate change mitigation actions.”

The program will be implemented under the leadership of Uzbekistan’s Ministry of Economy and Finance, supported by representatives from key government agencies. AIIB and ADB will oversee the program's implementation to ensure its effective execution and alignment with the broader development goals.