The World Bank intends to provide Uzbekistan with a grant of $46 mln

The World Bank intends to provide Uzbekistan with a grant of $46,250,000. This grant will be implemented through the organization's project, "Innovative Carbon Resources for the Transformation of the Energy Sector of Uzbekistan."

The new multimillion-dollar grant from the World Bank aims to assist the Uzbekistan government in reducing greenhouse gas emissions, promoting the efficient use of energy resources, and accessing international carbon markets.

Specifically, the project enables Uzbekistan to accumulate "carbon credits" measured in tons of CO2 equivalent, representing the amount of reduced greenhouse gas emissions. These credits can be sold on international carbon markets. This initiative is the first of its kind in Uzbekistan and Central Asia, operating within the framework of the Paris Agreement and granting the country access to global carbon market mechanisms.

Marco Mantovanelli, the head of the World Bank's representative office in Uzbekistan, states, "The project holds great potential for reducing greenhouse gas emissions in the energy sector and transitioning to clean energy production in Uzbekistan. The project will establish relevant institutions, infrastructure, systems, processes, and professional and technical capacity, as well as necessary documents for participating in the carbon market mechanisms outlined in the Paris Agreement. These activities will prepare the country for broader implementation of similar initiatives in the future."

Under the project's implementation, grant funds will be allocated to Uzbekistan annually until 2028 as incentive measures for energy subsidy reform results.

Projections indicate that Uzbekistan can reduce emissions by approximately 60 million tons during the project's duration. The project will purchase approximately 2-2.5 million tons of emissions, with Uzbekistan being able to sell the remaining carbon units on international carbon markets using the developed and tested systems and mechanisms from the project.

It is worth noting that the World Bank program in Uzbekistan is one of the largest programs in Europe and Central Asia, encompassing 29 projects with financial obligations of nearly $6 billion, which are currently being implemented.