Uzbekistan has signed a major financing agreement with the Asian Infrastructure Investment Bank (AIIB), securing $500 million to support the country’s shift toward a low-carbon and climate-resilient economy.

The programme, approved in late November, is designed to strengthen environmental governance and accelerate national reforms in energy, industry and public administration.

According to AIIB, the funding will help Uzbekistan make its energy sector more transparent, introduce climate-oriented procurement standards and create clear rules for the generation and trading of carbon units.

The programme also envisages a modern reporting and verification system to ensure reliable carbon-emissions monitoring.

A key focus is the expansion of green energy and resource-efficient technologies. Broader access to such technologies could reduce energy costs for households, particularly vulnerable communities,  while improving overall air quality according to the Bank.

The reform package is also expected to attract additional climate financing and encourage greater private-sector involvement in sustainability projects.

AIIB regional director Konstantin Limitovsky said the agreement marks an important step for Uzbekistan’s environmental policy.

“By advancing critical climate reforms, this programme lays the foundation for sustainable growth and broader participation in Uzbekistan’s green transition,” he said.

Implementation of the programme will begin in 2026. Officials say the reforms will support Uzbekistan’s long-term goals to reduce emissions, modernise public infrastructure and strengthen resilience to climate change.

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