Uzbekistan Gets $500M AIIB Loan To Drive Green Transition

Uzbekistan has signed a major financing deal with the Asian Infrastructure Investment Bank (AIIB), securing $500 million to support its Green and Sustainable Market Economy Transition Program.

The program aims to speed up the country’s shift toward an environmentally friendly and market-oriented development model. It focuses on reducing emissions, improving the efficiency of public institutions, and strengthening resilience to climate risks, The Caspian Post reports via Uzbek media.

Key reforms include greater transparency in the energy sector and state-owned enterprises, climate-focused public procurement rules, and new regulations for issuing and trading carbon credits. These initiatives will be backed by robust monitoring and reporting systems designed to attract more private investment.

The program is co-financed with the World Bank and fully aligns with Uzbekistan’s 2019-2030 Green Economy Transition Strategy and its international climate commitments.

“The program creates conditions for expanding climate financing and private sector participation. We look forward to continued close cooperation with the government of Uzbekistan on its green transition,” said Konstantin Limitovskiy, Chief Investment Officer at AIIB (Region 2).

Once implemented, the program is expected to encourage cleaner energy use, improve climate regulations, cut greenhouse gas emissions, and boost resilience to climate impacts. It will also help lower energy costs and improve living standards, especially for vulnerable communities.