Uzbekistan
Uzbekistan demonstrates numerous improvements in the business climate over the past five years. In the World Bank’s Ease of Doing Business rating, the country ranked 69 (out of 190 countries) in 2019, up from ranking 166 in 2011. Well-designed government policies help catalyse foreign investments, including clean energy and climate resilience. A new approach by the Uzbekistan authorities has allowed the EBRD — one of the key financers of climate actions in Central Asia — to re-engage in the country, open a new office in Tashkent and launch a new country strategy in 2018. Now it plans $0.5 billion investments to climate resilience of water supply and hydropower, green economy facility and projects supporting wind and solar power. In 2019, the International Finance Corporation (IFC) signed an agreement with Uzbekistan to develop 900 MW of solar power, which will attract about $1 billion of investment. In 2020, Uzbekistan announced a number of solar and wind power projects worth $650 million funded through public-private partnership. Two 100 MW photovoltaic power plants will be commissioned in 2021. Other renewable energy projects financed or facilitated via ADB, World Bank’s Scaling Solar Programme and EBRD are under planning and construction. The country’s goal is to reach 25 per cent of renewable energy in total power generation by 2030, including five gigawatts of solar power. The country has a successful record with GEF and Adaptation Fund projects, and has received GCF readiness support. Its ambitious plans for its GCF project portfolio are progressing slowly, however,
54
and currently the only GCF project funding it receives is though regional projects. Uzbekistan is the leading country of Central Asia in developing and implementing Clean Development Mechanism projects that cover energy and chemical industries and solid municipal waste. The Paris Agreement replaced the Kyoto Protocol and its CDM, but the project formulation experience and mitigation effect of CDM projects in Uzbekistan remain substantial. The Ministry of Economy and Foreign Trade is the National Designated Authority for GCF and is responsible for coordinating CDM-related activities in the country. Uzhydromet is the designated National Focal Point to the UNFCCC and is responsible for the preparation of national communications to the UNFCCC, GHG inventories and formulation of climate policy. Uzbekistan has adopted a number of programmes to decrease energy consumption, implement energy saving technologies and develop renewable energy resources. A programme to transition to low-carbon development includes the energy and housing sectors. The World Bank’s $200 million Energy Efficiency Facility for Industrial Enterprises supports Uzbekistan in these efforts. The EBRD is providing support in designing a competitive bidding process for renewable energy projects and is preparing the documentation for the first wind tender. New legislation on the use of renewable energy sources (2019) provides incentives to the potential investors.
