Government creates national fund to tackle environmental challenges

Uzbekistan has established a National Fund for Addressing Environmental Challenges and allocated UZS 900 billion to it. A portion of this funding comes from savings generated due to a stronger UZS, which reduced the cost of servicing external debt. From 2026, 10 percent of the recycling fee on imported vehicles will be directed to the fund, rising to 90 percent in 2027. Four members of the fund’s supervisory board will represent the public.

A National State Targeted Fund for Addressing Environmental Challenges has been established under the Ecology Committee of Uzbekistan.

According to the presidential decree, UZS 900 billion from the 2025 state budget will be allocated to the new fund.

This amount will come from resources originally earmarked, in line with the president’s instructions, for the socio-economic development of regions and for interest payments on external debt.

As a reminder, at the end of October, Central Bank Chairman Timur Ishmetov stated that the appreciation of the national currency had allowed the government to save UZS 1.3 trillion in external debt payments.

According to the presidential resolution, the newly established National State Targeted Fund for Addressing Environmental Challenges will receive UZS 548 billion in 2026 for the following measures:

for the national “Yashil makon” project – UZS 250 billion
for sanitary cleaning services – UZS 150 billion
for establishing protective forests to combat desertification and sand movement – UZS 73 billion 715 million
for purchasing special equipment for the forestry sector – UZS 66 billion 285 million
for maintaining the state cadastre of wildlife, flora and protected natural areas – UZS 8 billion

From 1 January 2026, the following revenue streams will be directed to the fund:

20 percent of proceeds generated from the sale of carbon units managed by the Republic of Uzbekistan
compensation payments for pollution and waste disposal, as well as administrative and court-imposed fines, financial sanctions and contributions collected from individuals and legal entities found in violation of environmental legislation (from 10 percent to 100 percent)
10 percent of the recycling fee paid by individuals and legal entities when clearing vehicles under the “release for free circulation (import)” customs regime

From 1 January 2027, the fund’s revenues will be expanded to include:

100 percent of recycling fees for pneumatic rubber tyres and casings, along with any new recycling fees introduced
90 percent of the recycling fee paid by individuals and legal entities when clearing imported vehicles under the “release for free circulation (import)” regime

The resolution establishes the supervisory board of the National State Targeted Fund for Addressing Environmental Challenges. The nine-member board, chaired by the head of the Ecology Committee, will include four independent members representing the public.

The board will ensure that all incoming funds are used transparently and in line with public accountability principles.

Prepared by: Дониёр Тухсинов

#ecology #environment #pollution