The Asian Infrastructure Investment Bank (AIIB) and the Government of Uzbekistan have signed an agreement to provide $500 million for the implementation of the Transition to a Green and Sustainable Market Economy Program.
This comprehensive reform package is designed to accelerate the country’s transformation towards a greener, more sustainable, and market-oriented development model.
The initiative envisages strengthening public management mechanisms to ensure low-carbon growth, improving public sector efficiency, and building greater resilience to climate change. Support for reforms that create the conditions for systemic economy-wide climate action is being provided under the Bank’s Climate Policy Based Financing (CPBF). Key measures include enhancing management efficiency and transparency in the energy sector and state-owned enterprises, introducing climate-oriented public procurement standards, and establishing clear and transparent rules for carbon credit trading using a robust monitoring, reporting, and verification system to attract private capital.
The Program is being implemented in partnership with the World Bank and is fully aligned with the Republic of Uzbekistan’s Strategy for the Transition to a Green Economy for the period 2019–2030, as well as the country’s commitments. It also contributes to the implementation of the “Uzbekistan – 2030” Strategy, which places special emphasis on the development of clean energy and improving resource efficiency. The financing aligns with AIIB’s thematic priorities: Green Infrastructure and Private Capital Mobilization. This reinforces the Bank’s role in supporting the systemic reforms necessary for climate-oriented investments and sustainable development.
“This program reflects AIIB’s commitment to supporting Uzbekistan’s reforms that can deliver sustainable climate and economic outcomes,” said Konstantin Limitovskiy, AIIB Vice President for Investment Operations (Region 2). “By advancing key climate reforms, the Program creates the conditions for expanding climate finance and private sector participation. We look forward to continuing our close cooperation with the Government of Uzbekistan.”
The reforms supported by the Program are expected to deliver significant long-term environmental and social impacts. The rational use of resources, the introduction of clean energy solutions, and the improvement of climate-oriented regulation should lead to reduced greenhouse gas emissions, better air quality, and increased resilience to climate risks. expanding access to energy-efficient technologies will also reduce energy costs and improve living conditions, particularly for socially vulnerable groups.
The Asian Infrastructure Investment Bank is a multilateral bank focused on financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB brings together 111 member countries. The Bank has a capitalization of $100 billion and holds AAA ratings from the major international credit rating agencies. Working with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled, and promotes regional connectivity.