AIIB Funding Accelerates Uzbekistan’s Climate Transition with $250M Financing
The Asian Infrastructure Investment Bank (AIIB) has approved $250 million in financing to support Uzbekistan’s climate transition towards a green, inclusive, and resilient economy. This funding represents a significant step in Uzbekistan’s efforts to enhance climate resilience and promote sustainable economic growth in line with its “New Uzbekistan 2030” development strategy and updated Nationally Determined Contribution (NDC).
The program will focus on three key pillars to drive sustainable development in Uzbekistan. Firstly, it will enhance climate-related governance frameworks to integrate climate considerations into national decision-making processes, strengthening institutional capacity and governance. Secondly, it will improve water and land resource management to mitigate climate risks and ensure the resilience of crucial resources while fostering economic sustainability. Lastly, the program will accelerate the transition to low-carbon solutions in sectors like energy, transport, and e-mobility, prioritizing energy efficiency improvements and sustainable practices.
Additionally, the program will prioritize the adoption of sustainability and climate risk disclosure practices for state-owned enterprises and the expansion of renewable energy initiatives, with a focus on benefiting women and vulnerable communities.
AIIB Vice President Konstantin Limitovskiy highlighted the significance of the partnership between AIIB, ADB, and the Government of Uzbekistan in driving sustainable development in Central Asia. He emphasized the importance of incorporating climate priorities into economic planning, enhancing adaptation measures, and promoting decarbonization in critical sectors to support Uzbekistan’s national strategy and meet its commitments under the Paris Agreement.
ADB Country Director Kanokpan Lao-Araya also emphasized the long-term challenges that climate change poses to Uzbekistan’s economic progress. ADB is collaborating closely with AIIB to support an integrated approach towards achieving resilient, inclusive, and low-carbon economic growth in the country, strengthening climate change adaptation priorities, and accelerating mitigation actions.
The program will be implemented under the leadership of Uzbekistan’s Ministry of Economy and Finance, with oversight from AIIB and ADB to ensure effective execution and alignment with broader development goals. This initiative marks a significant step towards building a greener, more sustainable future for Uzbekistan while addressing the challenges posed by climate change.
