The Asian Development Bank (ADB) approved a $250 million policy-based loan to help Uzbekistan advance its climate transition efforts. The loan will focus on institutional frameworks, climate resilience, and low-carbon economic development.
This landmark financing will support the government’s acceleration of climate change mitigation and adaptation strategies as part of its broader sustainability goals.
Focus Areas of the Accelerating Climate Transition Program
The loan, part of the Accelerating Climate Transition Program, aims to strengthen institutions, improve resilience, and promote a low-carbon transition.
This program is ADB’s first climate initiative in Central Asia, marking a key step in supporting the region’s green transition. The program aligns with Uzbekistan’s updated NDC, its Green Economy Framework through 2030, and ADB’s 2024–2028 partnership strategy.
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Tackling Uzbekistan’s Energy and Water Challenges
Uzbekistan is among the world’s most energy-intensive economies, with high greenhouse gas emissions per gross domestic product (GDP) unit. The ADB loan aims to reduce emissions by 35% by 2030, focusing on renewable energy and improving energy efficiency. The program also emphasizes building resilience against climate-related disasters.
Yevgeniy Zhukov, ADB Director General for Central and West said, “The program prioritizes decarbonization of the economy and resilience to disasters and climate change while supporting vulnerable populations.”
He added, “Uzbekistan is among the most energy-intensive economies globally, so the program will support the government’s efforts to reduce greenhouse gas emissions per unit of gross domestic product by 35% by 2030. The reductions will be pursued by promoting renewable energy and improving energy efficiency.”
In addition, Uzbekistan’s water resources face severe threats from climate change and poor management. The program supports irrigation modernization and climate-smart water management to protect water security and combat desertification risks in Uzbekistan.
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Strengthening Governance and Policy Coordination
The program aims to strengthen Uzbekistan’s capacity to address climate challenges through better policy coordination, resource allocation, and monitoring. The loan will help the government monitor climate progress and allocate budget resources efficiently for climate resilience initiatives.
Uzbekistan joined the ADB in 1995, and since then, the bank has committed $12.5 billion in loans, grants, and technical assistance to support the country’s development. The new climate-focused loan is key to ADB’s efforts to help Uzbekistan achieve a more prosperous, inclusive, and sustainable future.