The Asian Development Bank (ADB) has approved a $250 million in a loan to support the Government of Uzbekistan’s efforts to strengthen the institutional framework for the climate transition and accelerate climate change mitigation action.

The Climate Transition Acceleration Program will support the Government of Uzbekistan in three reform areas:

• strengthening public financial management;
• building climate resilience in water and land management, agriculture, and social protection systems;
• accelerating the transition to a low-carbon economy in sectors such as transport and energy.

“The program prioritizes decarbonization of the economy and strengthening resilience to natural disasters and climate change, while supporting vulnerable segments of the population,” said ADB Director General for Central and West Asia Evgeny Zhukov. “Uzbekistan is one of the most energy-intensive economies in the world, so the program will support the government’s efforts to reduce greenhouse gas emissions per unit of GDP by 35% by 2030. The reduction will be achieved through the development of renewable energy sources and increased energy efficiency.”

“Uzbekistan’s water resources are under serious threat from climate change and inefficient use,” said ADB Country Director for Uzbekistan Kanokpan Lao-Araya. “This program supports the adoption of legislation that facilitates investments in irrigation modernization and smart water management, taking into account climate change, to ensure water security and combat accelerating desertification, which threatens fragile ecosystems.” “The program was designed to enhance the government’s capacity to address the complex challenges of climate change through improved policy coordination, targeted budget allocation, and enhanced monitoring and accountability for climate-related expenditures and performance,” explained ADB Principal Public Sector Specialist Hanif Rahemtullah.