BAKU, Azerbaijan, October 29. The European Bank
for Reconstruction and Development (EBRD) and the Green Climate
Fund (GCF) have launched a new green financing framework in
Uzbekistan, offering up to $20 million to support investments in
energy efficiency, sustainable agriculture and resource
conservation, the EBRD said on Thursday.
Under the Greening Financial Systems (GFS) framework,
Hamkorbank, Uzbekistan’s third-largest lender, will become the
first local bank to receive financing, according to the EBRD.
The financing package comprises an EBRD loan of up to $18
million and concessional financing of up to $2 million from the
GCF. The funds will be available in Uzbek soums through a synthetic
currency structure or in U.S. dollars and will support
private-sector investments in climate change mitigation and
adaptation.
Eligible projects may include energy-efficiency improvements,
agricultural irrigation systems, water conservation and other
technologies designed to reduce resource consumption and strengthen
climate resilience. The EBRD estimates that investments supported
by the financing could reduce carbon dioxide emissions by
approximately 5,685 metric tons annually.
The GFS framework builds on the EBRD’s Green Economy Financing
Facility (GEFF) I and II programs in Uzbekistan, which have
established a combined financing framework of $160 million since
their respective launches in 2018 and 2023.
Through these programs, the EBRD has supported 425 green
projects in Uzbekistan through five participating financial
institutions. The investments have helped businesses access
climate-friendly technologies, including energy-efficient
equipment, electric vehicles, solar photovoltaic systems and
industrial decarbonization solutions. Nearly 10% of the projects
supported women-led or women-owned businesses.
The existing GEFF programs have generated annual energy savings
of approximately 1.1 million gigajoules and reduced annual carbon
dioxide emissions by about 53,000 metric tons. They have also
supported the development of more than 14.3 megawatts of renewable
energy capacity and strengthened local banks’ ability to finance
green investments.
The new GFS framework aims to expand access to climate financing
and encourage Uzbekistan’s financial sector to incorporate climate
considerations into lending and investment decisions.
The EBRD has invested nearly $7.3 billion in Uzbekistan through
219 projects, with most of its financing directed toward supporting
private-sector development.
