EBRD Backs Green Finance Expansion in Uzbekistan

Uzbekistan’s push toward a greener economy is getting a fresh boost as the European Bank for Reconstruction and Development (EBRD) steps up support for local businesses with new financing aimed at energy efficiency and climate resilience.

Under the Uzbekistan Green Economy Financing Facility II (GEFF II Uzbekistan), the EBRD will provide a loan of up to $30 million to Hamkorbank, enabling the lender to expand green financing for micro, small and medium-sized enterprises, as well as households across the country, The Caspian Post reports via EBRD.

The funds will help businesses modernize production processes, cut energy consumption and invest in technologies that strengthen resilience to climate change.

The loan will be backed by concessional co-financing from the government of Canada through the High-Impact Partnership on Climate Action (HIPCA), a multi-donor initiative that also includes Austria, Finland, Germany, the Netherlands, Norway, South Korea, Spain, Switzerland, the United Kingdom, the United States and TaiwanICDF.

The EBRD remains one of Uzbekistan’s key development partners. To date, the bank has invested more than $6.6 billion in the country through 196 projects, with a strong focus on supporting private entrepreneurship and sustainable economic growth.

The new financing comes amid broader efforts to modernize Uzbekistan’s economy and infrastructure, following recent reports of major regional investment initiatives, including the China-Kyrgyzstan-Uzbekistan railway project.