Tashkent, Uzbekistan (UzDaily.com) —  The Asian Infrastructure Investment Bank (AIIB) has approved US$250 million in financing to accelerate Uzbekistan’s climate transition toward a green, inclusive, and sustainable economy.

This project marks a significant milestone for Uzbekistan as it advances sustainable economic growth in alignment with its national development strategy, "Uzbekistan 2030," and its updated Nationally Determined Contribution (NDC), which commits the country to reducing greenhouse gas emissions per GDP unit by 35% below 2010 levels by 2030.

The initiative focuses on three interconnected pillars aimed at ensuring sustainable development:

Strengthening Climate Governance
The project will enhance institutional capacity and governance structures related to climate change, paving the way for robust management and policy implementation.

Water and Land Resource Management
It will improve the management of water and land resources while fostering economic resilience and sustainability.

Promoting Low-Carbon Solutions
By advancing energy efficiency and sustainable practices in key sectors such as energy and transportation, the project will accelerate Uzbekistan’s shift to low-carbon solutions.

Additionally, the initiative will emphasize sustainable development disclosures and climate risk transparency for state enterprises. It will also expand renewable energy projects, prioritizing benefits for women and vulnerable communities.

“Collaboration between AIIB, ADB, and the Government of Uzbekistan underscores our shared commitment to sustainable development in Central Asia,” said Konstantin Limitovsky, AIIB Vice President for Investment Operations Region 2. “By embedding climate priorities into economic planning, strengthening adaptation measures, and driving decarbonization in critical sectors like energy and transport, this project plays a pivotal role in supporting Uzbekistan’s 2030 strategy and its NDC under the Paris Agreement.”

Kanokpan Lao-Araya, ADB’s Country Director for Uzbekistan, highlighted the multidimensional challenges posed by climate change to Uzbekistan’s economic progress:
“ADB is working closely with AIIB on this project to support an integrated approach for achieving sustainable, inclusive, and low-carbon economic growth. It also fosters a conducive environment and institutional framework for climate action, strengthens climate adaptation priorities, and accelerates mitigation efforts.”

The program will be implemented under the leadership of Uzbekistan’s Ministry of Economy and Finance, with participation from key state institutions. AIIB and ADB will oversee the project’s execution to ensure effective implementation and alignment with broader development goals.