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.
