EU, AFD and UNDP joining efforts to support green financing in Uzbekistan

EU, AFD and UNDP joining efforts to support green financing in Uzbekistan
Photo credit: UzA

A new project intended to support financing of the Green Development in Uzbekistan co-financed by the European Union, Agence Francaise de Developpement (AFD), and the United Nations Development Programme (UNDP) aims to help the Government in establishing an integrated approach towards identification, assessment, and integration of potential sources of financing for achieving the country’s green priorities and objectives, further mainstreaming green considerations into the budgetary process through a full-scale introduction of green budgeting methodologies, streamlining and using public finance more effectively as well as piloting and introducing new innovative financing instruments, UzA reports.

On 6 May 2024, Mr. Vincent Caupin, Head of Central Asia Office of the Agence Francaise de Developpement, Ms. Charlotte Adriaen, European Union Ambassador in Uzbekistan, and Mr. Anas Fayyad Qarman, UNDP Resident Representative a.i. in Uzbekistan, signed a financing agreement. This agreement opens new avenues for collaboration between three parties to support the Government of Uzbekistan in achieving its green priorities and objectives.

“By integrating green priorities into financing and using innovative instruments, we’re paving the way for a budgetary process that champions sustainability. Using public funds innovatively can drive real change and support Uzbekistan’s ambitious green agenda”, noted Mr. Anas Fayyad Qarman at the signing ceremony.

“Green economy policies are becoming a priority in many countries and Uzbekistan as well. And the national budget is the main tool to put in place these policies. EU, UNDP, and AFD join forces to accompany the Ministry of Economy and Finance to use effectively its budget for a greener economy”, highlighted Mr. Vincent Caupin.

The new project will be built on the results and achievements of the previous joint initiative of AFD and UNDP on “Strengthening the national capacities towards the introduction of SDG and Green budget tagging methodologies and practices in Uzbekistan”, successfully implemented during 2022-2023. As a part of a fruitful collaboration between AFD and UNDP, substantial support was provided to the Ministry of Economy and Finance in designing and developing relevant methodologies based on international good practices, carrying out research activities as well, and strengthening the institutional and individual capacities of the national partners in SDG and Green budgeting.

It is worth mentioning key milestone results achieved so far, including a climate budget tagging exercise conducted for the first time in Uzbekistan and tagging outcomes presented in the relevant publications of a Citizens’ Budget. In addition, Uzbekistan’s first Climate Public Expenditure and Institutional Review was developed to analyze and identify how climate change issues were integrated into the country’s policy direction, whether they were supported by a strong institutional framework and reflected in the Government budget. Those outputs provided a solid basis for strengthening the dialogue and communication of the Government with the Parliament and civil society on the importance of climate change issues and green development for Uzbekistan.

As part of this Agreement, the European Union provides a grant of EUR 600,000. AFD will implement it through technical assistance to the Government of Uzbekistan to implement the joint project with UNDP on “Support to Financing Green Development in Uzbekistan” during 2024-2026.

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