The Ministry of Economy and Finance of Uzbekistan has presented the results of reforms implemented between 2022 and 2026 as part of the country's transition to a green economy. These changes encompass legislative initiatives, international agreements, and efforts to attract climate finance.
Legal Framework for Reforms
The reforms are based on Presidential Decree No. PP-436 of December 2, 2022, which approved the program for the Republic of Uzbekistan's transition to a green economy and ensuring green growth until 2030. The document also defined the concept of industrial transition to a green economy, energy-saving measures, and an action plan, including target indicators for fuel and energy resource savings for 2022–2026. According to these goals, a 20 percent reduction in the energy intensity of produced goods compared to 2022 must be achieved by 2026. Furthermore, the composition of the Interdepartmental Council for Coordinating Measures for the Transition to a Green Economy was updated, and a Donor Coordination Group for this area was approved.
Green Energy Certificates
Uzbekistan has developed a 'green energy certificate' system, introduced by Presidential Decree No. PP-156 of May 12, 2023. These certificates confirm that products were manufactured using renewable energy sources. Renewable energy producers sell these certificates to end consumers, including manufacturers and other buyers, thereby guaranteeing the clean origin of the energy. This system also allows companies to increase the export of their products, as similar certificates are mandatory in the European Union, and attracts green investments and loans from international financial institutions. To date, over 446,000 certificates have been issued and put into circulation under this system.
Methane Reduction Commitment
At the initiative of the Ministry of Economy and Finance, Uzbekistan joined the Global Methane Pledge in May 2022. Under this commitment, participating countries voluntarily pledged to reduce global methane emissions by at least 30% by 2030 relative to 2020 levels. Technical assistance amounting to US$1 million was received from the European Bank for Reconstruction and Development (EBRD) to implement this initiative and develop a national program for methane emission reduction.
Collaboration with the World Bank on Carbon Trading
Together with the World Bank, Uzbekistan is implementing an innovative project in accordance with Article 6 of the Paris Agreement to create an international exchange of greenhouse gas emission reduction units. This project is named the first carbon finance transaction in Central Asia and the first political lending program of this kind for the World Bank globally. With financial support from the Transformational Carbon Assets Fund (TCAF)—a World Bank trust fund that supports countries' efforts to establish carbon pricing and attract private investment in low-carbon technologies—the iCRAFT project aims to attract US$46.2 million over the period 2024–2028. To date, the program has enabled a reduction of 10 million tons of CO2 equivalent greenhouse gas emissions and attracted US$15 million, of which US$7.5 million was received in 2024 and US$7.5 million in 2025.
The trade of emission reductions obtained through tariff reforms in the energy sector is carried out within two components. Within the Emission Reduction Purchase Agreement (ERPA), a carbon trading simulation is conducted, where units are returned to Uzbekistan, and a grant of US$20 million is allocated. Within the Mitigation Outcome Purchase Agreement (MOPA), the emission reduction is transferred entirely and without compensation to the World Bank, with US$25 million allocated.
Partnership with Japan
The governments of Uzbekistan and Japan agreed to launch the Joint Crediting Mechanism (JCM)—a Japanese cooperation mechanism that finances up to 50% of projects implementing advanced technologies in developing countries to reduce greenhouse gas emissions. The Memorandum of Cooperation under this mechanism was signed in October 2022. The first official meeting of the JCM joint council took place in February 2025, where the rules and guidelines for project implementation were approved.
Long-Term Decarbonization Strategy
In collaboration with the World Bank and EBRD, Uzbekistan launched a project to develop a long-term strategy for decarbonizing the economy and transitioning to a green development model. The project includes preparing an investment plan describing key measures and sectoral projects, as well as the volume of necessary investments to achieve carbon neutrality. As part of the project, a draft presidential decree is being prepared 'On Approving the Strategy for Low-Carbon Development and Achieving Carbon Neutrality of the Republic of Uzbekistan by 2055,' which is coordinated with relevant ministries and agencies.
Law on Greenhouse Gas Emissions Limitation
On July 7, 2025, Law No. ZRU-1073 'On Greenhouse Gas Emissions Limitation' was adopted. This law provides for the accounting of greenhouse gas emissions, the creation of a state registry of greenhouse gases and carbon units, the establishment of emission reduction targets for individual sectors, and mechanisms for state support of relevant measures.
Support for the Private Sector and Digital Platform
Together with the German organization for Uzbekistan's development, a project titled 'Assistance to the Private Sector and Policy Consultations in Uzbekistan' worth 12 million euros for the period 2023–2028 is being implemented. The project involves training 80 ministry and agency employees, including 30 women, in green industrial policy principles; supporting relevant ministries in developing four strategic documents; and assisting 25 small and medium-sized enterprises, including three women-owned businesses, in reducing CO2 emission intensity by at least 10%. An online green economy platform, green.imv.uz, has also been created, which aggregates information on the legal framework, current and planned activities, best international practices, and other aspects of green growth.
International Coalitions and Assessments
In 2023, the Ministry of Economy and Finance joined the Coalition of Finance Ministers for Climate Action, which operates based on Helsinki Principles. These principles include aligning policy with Paris Agreement commitments, exchanging experience on climate change, measures for creating effective carbon trading, incorporating climate factors into macroeconomic policy and public procurement, mobilizing private funding sources, and participating in the preparation of Nationally Determined Contributions (NDCs).
Together with the World Bank, Uzbekistan prepared and published the Climate Change and Development Report (CCDR)—a national assessment designed to analyze the impact of climate change on the economy and facilitate the attraction of accessible international green finance.
Carbon Trading Regulation and National Contributions
Cabinet of Ministers Decree No. 117 of March 7, 2024, approved temporary rules regulating international greenhouse gas trading projects. These rules establish procedures for organizing such projects and will remain in force until a national procedure for implementing the sustainable development mechanism under Article 6 of the Paris Agreement, signed in Paris on December 12, 2015, is approved.
Presidential Decree No. PP-213 of June 5, 2024, approved a draft resolution on measures to introduce a national transparency system for Uzbekistan's transition to a green economy, covering all levels of greenhouse gas emissions. This system will allow for the evaluation of measures and results related to achieving Nationally Determined Contributions, and it will enhance the confidence of donors and investors.
In line with its obligations under the Paris Agreement, Uzbekistan has developed and submitted its Nationally Determined Contributions, NDC 1 and NDC 2, under the UNFCCC. In 2025, an updated version, NDC 3.0, was prepared and submitted jointly with the Ministry of Ecology.
Financing and International Recognition
Uzbekistan applied to the Climate Investment Funds (CIF) industrial decarbonization program and was included among the six countries with the best results, opening up the possibility of attracting a preferential loan of US$250 million. Presidential Decree No. UP-110 'On Measures for Participation in the International Carbon Unit Market' was adopted, based on which a draft Cabinet of Ministers decree on improving greenhouse gas inventory is being developed.
An agreement was reached to provide a grant of US$8.5 million from the Korean agency KOICA for the period 2026–2030 for a project supporting Uzbekistan's implementation of the Paris Agreement and joint actions with the Republic of Korea under Article 6 of the agreement. Credit financing of US$200 million was secured for the project promoting Uzbekistan's decarbonization strategy and cooperation in the transition to a green economy. Through the third phase of the Green Economy Financing Facility (GEFF), local banks use these funds to provide green loans to enterprises. An agreement was reached with representatives of the EBRD regarding the possibility of increasing the project's credit financing to US$300 million.
A draft presidential decree on approving a national program to improve the green finance system is being prepared, coordinated with ministries and agencies. This program envisages the creation of a National Green Economy Fund under the Green Economy Projects Center, which will be established within the Ministry of Economy and Finance.
International Exhibitions and Bilateral Cooperation
At the Eco Expo Central Asia 2025 international exhibition in Tashkent, the Ministry of Economy and Finance organized the 'Green Economy and Green Finance' pavilion with the participation of representatives from the World Bank, EBRD, Asian Development Bank, the German Agency for Development, the National Energy Efficiency Agency, refinancing companies, and commercial banks SQB and Agrobank. After the exhibition, the ministry won first place among participating agencies for the best pavilion.
On September 15, 2024, following negotiations between Uzbekistan and Germany, the Ministry of Economy and Finance of Uzbekistan and the Federal Ministry for Economic Affairs and Climate Action of Germany signed a memorandum of understanding on cooperation under Article 6 of the Paris Agreement. The goal of this memorandum is to reduce greenhouse gas emissions and strengthen adaptation capacity to the effects of climate change.
At the initiative of the ministry, a draft agreement on climate cooperation was developed with relevant agencies of the Republic of Korea. As a result, the governments of the two countries signed a framework agreement in Tashkent in June 2023, which was approved by Presidential Decree No. PP-339 of October 19, 2023. This agreement aims to develop cooperation in combating climate change, introducing advanced Korean technologies, organizing emission reduction trading, and developing cooperation in the transition to a climate-resilient, low-carbon economy.
During the official visit of the President of Uzbekistan to Hungary on May 19–20, 2025, the governments of Uzbekistan and Hungary signed a framework agreement on cooperation under the Paris Agreement on May 20.