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Kazakhstan Considers “Green” Tax on Plastic Packaging

Azhar Sagandykova, a deputy in Kazakhstan’s Mazhilis, has proposed introducing a “green” tax on non-environmentally friendly packaging. She announced the initiative during the IX Eurasian Business Forum Green Energy & Waste Recycling Forum (GEWR-2025). The proposed tax would apply to packaging materials that are difficult to recycle or non-biodegradable, such as polyethylene terephthalate (PET) bottles, plastic bags, and other polyethylene-based containers. “It is time to seriously consider introducing a green tax on non-environmentally friendly packaging and directing the funds collected towards the development of waste recycling,” Sagandykova stated. According to the United Nations Development Programme (UNDP), Kazakhstan produces approximately 4.5 million tons of waste annually. Of this, 80% is generated by the municipal sector, while 20% comes from industry, healthcare, and other sectors. Only about 26% of the total waste is recycled. These figures were confirmed by Zhomart Aliyev, Kazakhstan's Deputy Minister of Ecology and Natural Resources, who also addressed the forum. Speaking on the sidelines of the event, Aliyev commented on the complexities of implementing such a tax. “It is very difficult to say at this stage what a green tax on a particular product should look like. It could affect virtually all sectors of the economy. We have begun preparatory work, but it is still at an early stage. We need to calculate the figures for the whole country in detail,” he said. In addition to the tax proposal, Sagandykova advocated for a dedicated law on waste management to clarify responsibilities, define infrastructure needs, and introduce government incentives. “The existing Environmental Code contains a number of vulnerabilities and does not cover all aspects of waste management. Therefore, within the framework of a working group in the Mazhilis, we intend to review the systemic approach to solving this problem,” she explained. During the summer, deputies plan to collect proposals from businesses, environmentalists, and civil society stakeholders. These suggestions will inform a draft bill to be discussed in the fall. Aliyev added that the government is already working on a comprehensive waste management concept, excluding radioactive waste, which remains under the jurisdiction of the Atomic Energy Agency. The concept, commissioned by the prime minister, is expected to be finalized by September, when a decision will be made on whether a standalone waste management law is necessary. As previously reported by The Times of Central Asia, Kazakhstan had aimed to phase out plastic packaging and tableware by 2025. However, due to a lack of sufficient alternatives in domestic production, the government was forced to abandon the timeline.

European Union Investments Agriculture Cotton Green economy Environment Textile industry Cotton Reform

Tajikistan Pursues Cotton Reform with EU Backing

The European Union’s support for green transitions presents a real opportunity for Tajikistan to achieve sustainable agricultural development, particularly in the cotton industry, according to Mizrob Amirbekov, an agricultural development expert. Amirbekov highlighted this potential, underscoring the importance of international assistance in modernizing the sector, addressing environmental and social challenges, and establishing a fair and transparent production system. Rising Demand, Persistent Problems As global demand for environmentally friendly textiles grows, Tajikistan has a unique chance to establish a sustainable model for cotton production, Amirbekov explained. Increased interest in natural fabrics, driven by both demographic growth and technological advancements, is pushing the industry toward transformation. However, this economic potential is clouded by persistent challenges, including environmental stress, social risks such as forced labor, and a lack of transparency across the supply chain. The global cotton sector has long faced scrutiny over high water consumption, widespread pesticide use, and unethical labor practices. In response, consumers and international regulators are increasingly pressing for a shift to more sustainable production methods. EU Investment and National Reform Tajikistan has begun responding to these challenges. In 2024, it approved the National Strategy for the Development of the Cotton and Textile Industry through 2040, prioritizing modernization, cost reduction, and the expansion of high-value-added production chains. The European Union is playing a central role in this transformation, having allocated a €19.88 million grant to support the sector’s green transition. The funds aim to advance digital technologies, assist small and medium-sized enterprises, and help the industry adapt to climate change impacts, from droughts to rising temperatures. “This is not merely financial aid, it’s an opportunity to build a truly sustainable cotton production system,” said Amirbekov. “Farmers and buyers need to understand the principles of sustainability and how agriculture can become a driver of the green economy.” Ongoing Social and Environmental Challenges Despite signs of progress, Amirbekov noted that significant problems persist. Farmers report that forced labor continues in some areas, with schoolchildren and unrelated government employees involved in cotton harvesting, practices that violate Tajikistan’s international commitments and damage the credibility of its organic cotton sector. Environmental impacts are equally severe. Producing a single T-shirt can consume up to 2,700 liters of water, and nearly a kilogram of pesticides may be used per hectare. Amirbekov stressed the need to adopt certified standards such as the Global Organic Textile Standard (GOTS), to promote sustainable cotton varieties, and to implement precision farming. “Climate change is already reducing yields, droughts, floods, and temperature fluctuations are becoming more common,” he warned. To address this, he advocates for sustainable seed varieties, efficient irrigation, and participation in carbon reduction programs. Amirbekov also criticized the cotton supply chain as fragmented and poorly regulated, undermining trust from international buyers and complicating the enforcement of sustainability standards. He called for the introduction of digital platforms to track supply chains in real time. Social inequality is another concern: women and small-scale farmers often face limited access to markets and lack property rights. Incorporating fair trade practices, supporting cooperatives, and enforcing...

Farmland GIS platform climate-smart agriculture FAO Green economy Agriculture EBRD Kyrgyzstan

Kyrgyzstan to Improve Farmland Monitoring with EBRD and FAO Support

The European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organization of the United Nations (FAO) have launched a joint initiative titled Greening Kyrgyzstan’s Economy: Know More, Act Better, Enhance Results. The project aims to foster climate-smart agriculture through the use of geographic information system (GIS) technology, improving farmland management and bolstering food security in Kyrgyzstan. According to the EBRD, the initiative is supported by its Food and Agribusiness team and involves close cooperation with three key local aggregators: Kaindy-Kant (sugar beet processing), Kirbi (potato processing), and Dan Agro (pulses and legume processing). Together, these partners will help extend the project’s reach to more than 5,000 farmers. Harnessing GIS Technology The GIS platform will be managed by Kyrgyzstan’s State Agency for Land Resources, Cadastre, Geodesy and Cartography. It will be accessible to stakeholders across the agricultural sector, including the Ministry of Water Resources, Agriculture and Processing Industry, as well as farmers and aggregators. The system will enable users to identify sown crops, assess land-use efficiency, estimate productivity, and monitor crop rotation and sustainable water use. With additional funding from the Ministry of Digital Development, the State Agency will also develop a mobile application to improve access and facilitate the adoption of GIS tools at the grassroots level. Meanwhile, the EBRD and FAO will roll out a free e-extension application to provide advisory services to farmers. This collaboration promises substantial benefits for Kyrgyzstan, where agriculture employs nearly half the workforce and contributes approximately 12% of the national GDP. Broader Impact and Expectations The initiative is also expected to deliver environmental gains by enhancing efficiency in a sector responsible for roughly 37% of Kyrgyzstan’s greenhouse gas emissions. These efforts align with the country’s Paris Agreement target of cutting emissions by 16% by 2030. In addition to supporting environmental goals, the project is set to improve food security for Kyrgyzstan’s growing population, projected to reach 9.6 million by 2050. The data-driven approach to land management is designed to help rural communities adapt to climate change, strengthen agribusiness supply chains, and contribute to sustainable economic development. Participating aggregators stand to benefit from access to more accurate planting data, which will improve harvest forecasting and help optimize financing strategies.

Green economy EBRD Tajikistan

Tajikistan’s Green Deal: EBRD Launches Sustainability Pilot Projects

On April 1, the European Bank for Reconstruction and Development (EBRD) inaugurated two demonstration sites under the Tajikistan Green Economy Financing Facility (GEFF II) in the town of Bokhtar. The initiative promotes innovation in sustainable energy and agriculture, backed by funding from South Korea, Austria, and the Green Climate Fund. The total program budget is $50 million. Bringing Energy Efficiency to Life The first site, located at the MoDO Khumo branch in Bokhtar, features a hybrid solar photovoltaic system combining solar panels with energy storage. This technology ensures a stable power supply even during periods of low solar activity. Real-time data on electricity generation and consumption is displayed in the customer area, helping to raise public awareness of sustainable energy practices. The second site, at the Tanzila dekhkan farm in Vakhsh district, showcases how green technologies can boost crop yields and reduce environmental impact. The installation includes: Drip irrigation systems that save up to 70% of water; Solar panels for off-grid electricity; Biogas units using organic waste; Vertical farming in compact spaces. These solutions aim to enhance agricultural productivity and improve farmers' incomes. Strategic Development with the EBRD GEFF II also prioritizes gender equality, offering targeted support to women entrepreneurs seeking green financing for sustainable business ventures. The demonstration sites form part of the EBRD’s broader strategy to promote sustainable development across Tajikistan. Additional pilot locations are planned to showcase further environmentally friendly technologies. EBRD’s Broader Footprint in Tajikistan Established in 1991, the EBRD provides financial and technical support to nearly 40 countries for economic and structural reforms. In Tajikistan, the bank remains a key investor, having committed over €1 billion across 183 projects. Notable EBRD-supported initiatives include: Dushanbe Infrastructure Modernization - €28.45 million to improve roads and a bridge over the Varzob River; Dangara-Guliston Road Upgrade - €38 million for roadworks and infrastructure for electric vehicles; CLIMADAPT - $10 million to help farmers and businesses adopt climate-resilient technologies; Kayrakkum Hydroelectric Plant Modernization - $88 million to boost energy efficiency and support climate adaptation. These investments are helping Tajikistan build climate resilience, modernize infrastructure, and create sustainable pathways for regional development.

EBRD Banking Economy Green economy Economic Diversification International Finance

Powering the Green and Economic Revolution: An Interview With Andi Aranitasi, Head of the EBRD in Uzbekistan

As the Head of the European Bank for Reconstruction and Development (EBRD) in Uzbekistan, Andi Aranitasi plays a key role in driving the country’s economic transformation. Under his leadership, the EBRD has expanded its investments in key sectors such as energy, infrastructure, and private enterprise, supporting Uzbekistan’s shift toward a more open and sustainable economy. With a focus on green energy, digitalization, and financial reforms, Aranitasi’s efforts contribute to the nation’s long-term development and integration into global markets. In 2024, the EBRD set an investment record in Uzbekistan by signing off on 34 projects worth €938 million (US $960 million). The country once again became the leading recipient of the Bank’s funding in Central Asia, with 55% of the Bank’s investments going towards green economy projects. The EBRD has supported Central Asia's first renewable hydrogen facility by providing a $65 million financing package to a joint venture of ACWA Power and Uzkimyosanoat, which will help to decarbonize the fertilizer production sector in Uzbekistan. The Bank also organized an A/B loan of US$ 226 million for developing, designing, constructing, and operating a 200MW solar photovoltaic power plant and a 501MWh battery energy storage system (BESS) in the Tashkent region. This is one of the most significant EBRD-supported BESS projects in the economies where the Bank operates. Its sovereign loan of $66.4 million to the National Electric Grid of Uzbekistan (NEGU) will support the construction of a 230 km 500 kV transmission line in the Navoi region. This project will help to eliminate bottlenecks in the grid, reduce electricity outages, and facilitate the integration of renewables. The EBRD’s sovereign loan of $238 million, meanwhile, will help rehabilitate a key road and build a bridge across the Amu Darya River in the Khorezm region, thus contributing to sustainable transport connections. The country’s financial sector attracted over €300 million from the EBRD through trade finance limits and loans to local financial institutions. It offered credit lines and risk-sharing agreements to such domestic lenders as Hamkorbank, Ipoteka Bank, TBC Bank Uzbekistan, and Uzbek Leasing International. Special attention was paid to the development and support of SMEs, including those needing energy efficiency improvements and owned and managed by youth and women. The EBRD also increased its equity investment in TBC Uzbekistan, the country’s first digital bank. Additionally, the EBRD and the government of Uzbekistan agreed to work jointly on the successful privatization of one of the country’s largest state-owned lenders, Asakabank. In 2024, the EBRD’s Advice for Small Business program in Uzbekistan launched 60 projects, increasing its outreach to domestic SMEs. Half of these were with women entrepreneurs, and over 40% were in rural areas. More than 80,000 entrepreneurs nationwide were reached through specialized training, networking, online outreach, and knowledge-sharing events. Throughout 2024, the EBRD was actively engaged in policy dialogue with the national authorities, which facilitated the approval of several key legal acts, such as laws on privatization, the electricity market, and subsoil use. TCA spoke with Andi Aranitasi. TCA: The EBRD has been involved...

Green economy Foreign Investment Energy Infrastructure Economic Diversification

Uzbekistan Aims for 50% Green Energy by 2030 in Major Power Expansion

On January 28, President Shavkat Mirziyoyev held a meeting to outline Uzbekistan’s power sector development strategy for 2025-2035. In the past eight years, electricity production has increased by 38%, reaching 81.5 billion kilowatt-hours. Private sector participation has grown significantly, adding 11.2 gigawatts of new capacity. As a result, private power generation now accounts for 24% of the total, while renewable energy contributes 16%. Rising Demand and Infrastructure Expansion Household electricity consumption has doubled since 2016, surpassing 21 billion kilowatt-hours, driven by rising incomes and greater use of home appliances. By 2030, Uzbekistan’s population is expected to reach 41 million, and the economy is projected to grow 1.5 times, increasing electricity demand to 117 billion kilowatt-hours. By 2035, demand is expected to reach 135 billion kilowatt-hours - 1.7 times the current level. To meet this growing demand, the government plans to build new power plants and energy storage facilities. Infrastructure expansion will include 7,000 kilometers of new power lines and the introduction of digital management systems to ensure efficient distribution. If one region faces shortages, excess capacity from another will be redirected to balance supply. Over the next five years, $4 billion will be invested in modernizing the national power grid. Renewable Energy Targets and Efficiency Measures A key priority is reducing electricity costs by expanding renewable energy sources. Uzbekistan is considered to have strong solar, wind, and hydro potential, and by 2030, half of the country’s electricity is expected to come from these sources. Plans include constructing 3,000 small hydropower plants with a combined capacity of 164 megawatts and adding 750 megawatts from solar and wind power. The government had previously announced a goal to increase renewables’ share to 40% of total energy consumption by 2030, but the new target raises that figure to 50%. In addition to expanding clean energy, Uzbekistan is working to improve industrial energy efficiency. Some chemical and metallurgical plants consume twice as much energy as similar facilities worldwide, while cement production in the country requires 1.2 times more energy than global benchmarks. The goal is to reduce energy waste by 10 - 15% across all industries and cut electricity losses from 14% to 8 - 9% by 2030. Foreign Investment and Local Industry Opportunities International investors are already engaged in energy projects worth $26 billion, creating opportunities for local companies to supply equipment and materials. To guide these developments, the government has been tasked with preparing a long-term electricity strategy until 2035. The plan will focus on ensuring energy security, improving efficiency, and training skilled professionals to support Uzbekistan’s transition to a more sustainable power sector.