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Uzbekistan and Germany Partner on Green Industrialization with €3 Million Grant

On November 13, at the 29th UN Climate Change Conference (COP29) in Azerbaijan's capital Baku, Uzbekistan's Ministry of Economy and Finance signed a memorandum with the German International Cooperation Society (GIZ) to secure additional funding for a project aimed at supporting the private sector in green industrialization. As part of the initiative, Germany has allocated €9 million to help Uzbekistan’s private sector transition to a green economy. The project is designed to assist the Uzbek government in implementing economic reforms and fostering sustainable economic development, focusing on enhancing the capacity of both the public and private sectors to adopt green industrialization practices. The initiative will also provide technical expertise in measuring and certifying greenhouse gas emissions, supporting Uzbekistan’s participation in international carbon trading mechanisms, and aligning with the European Union’s Cross-Border Adjustment Mechanism (CBAM). Additionally, it aims to promote resource-saving and sustainable production by encouraging the private sector to adopt green technologies, including circular economy practices and green industrial park models. To further bolster the project, a €3 million grant was approved during the conference. This funding will complement the ongoing initiative, titled “Support to the Private Sector and Advice on Economic Policy in Uzbekistan.”

Energy Coal ADB Carbon Emission Renewable Energy Generation International investment

ADB to Help Kazakhstan Move Away from Coal Power Generation

Kazakhstan’s Ministry of Energy and the Asian Development Bank (ADB) have signed a memorandum of understanding, moving closer to the possible early retirement of a coal plant in Kazakhstan under the bank’s Energy Transition Mechanism (ETM) program. Under the memorandum, the ministry and ADB will work toward a pilot transaction that will demonstrate a pathway to significantly reduce Kazakhstan’s greenhouse gas emissions by decommissioning pilot coal plants for renewables or other low-c or repurposing carbon energy technologies. A feasibility study will determine which of the country’s coal-fired power generation, combined heat and power plants and heat-only boilers could be the most viable for early retirement. ADB and Kazakhstan have also agreed to analyze the potential impact of early decommissioning or repurposing of a plant on the country’s power and heat supply, develop the country’s renewable energy generation capacity, and promote regional energy trade. ADB Director General for Central and West Asia Yevgeniy Zhukov commented: “Keeping 1.5 degrees alive means moving away from fossil fuels and toward clean energy as quickly as possible—and ADB’s ETM program aims to do that in a way that considers each country’s energy and socioeconomic development needs. As Asia and the Pacific’s climate bank, we are committed to helping Kazakhstan inclusively decarbonize its economy, and we aim to demonstrate how the clean energy transition can be accelerated in Central Asia.” Minister of Energy of Kazakhstan Almassadam Satkaliyev added, “Kazakhstan will need to develop a new approach in the power, heating, and water sectors as a single technological system, and we rely on ADB’s support and experience. I hope this program will demonstrate new systems' technological shift and reliability through ETM, which can then be replicated in other plants and regions.” Kazakhstan is a major consumer of coal, with 25 billion tons of coal reserves estimated to be the eighth largest worldwide. About 70% of the country’s electricity is produced from coal, while energy-related activity, including heat and electricity production, accounts for more than 80% of the country’s total greenhouse gas emissions. Kazakhstan’s long-term strategy for achieving carbon neutrality by 2060 involves reducing its use of fossil fuels and increasing its renewable power generation capacity.

Investment Projects Saudi Arabia International investment Funding green projects Bilateral Cooperation Foreign Investment

Uzbekistan and Saudi Arabia Strengthen Ties: $2.5 Billion Investment Expected by Year-End

On November 11, Uzbekistan's President Shavkat Mirziyoyev met Saudi Arabia's Minister of Investments, Khalid al-Falih, during the extraordinary Arab-Islamic Summit currently being held in Riyadh. Cooperation between Uzbekistan and Saudi Arabia has rapidly developed in recent years. The volume of mutual trade, the scope of cooperation, and also the number of flights between the countries are increasing. By the end of this year, Saudi Arabian companies are expected to attract about $2.5 billion worth of investments in areas such as “green” energy, healthcare, transport infrastructure modernization, heat and water supply, agriculture, housing, and communal economy. Mirziyoyev also met with Muhammad bin Salman Al Saud, the Crown Prince and Prime Minister of the Kingdom of Saudi Arabia. Mirziyoyev noted that effective cooperation has been established with the leading company “ACWA Power,” which is modernizing Uzbekistan's energy sector through direct investments and advanced technologies. Emphasis was placed on developing wind and solar power plants across various regions of Uzbekistan and accelerating projects to produce “green” hydrogen. Additionally, an agreement was reached to engage Saudi Arabian companies and consultants to localize production and improve energy efficiency in Uzbek enterprises.

Green economy World Bank Green Future International investment Economic Reforms

World Bank Report Outlines Path to Drive Tajikistan’s Green Transition and Economic Growth

On November 7, the World Bank Group published the Tajikistan Country Climate and Development Report (CCDR), highlighting the transformative potential of climate action for Tajikistan's economy. The report suggests that addressing climate risks can drive economic renewal, create jobs, and enhance resilience against the rising frequency of extreme weather events caused by climate change. Ozan Sevimli, World Bank Group Country Manager for Tajikistan, emphasized the urgency of a strategic shift: “Tajikistan urgently needs an economic reset to tackle its numerous development challenges and the growing impacts of climate change that threaten future progress. The CCDR provides a roadmap for accelerating the transition to a green economy, supporting long-term growth.” A key finding of the report is the importance of mobilizing private-sector financing to supplement Tajikistan's limited public resources. This financing will be crucial in securing the nation’s green transition and ensuring water, food, and energy security. Despite ranking 130th globally in greenhouse gas emissions, Tajikistan is highly vulnerable to climate change impacts, notes Bahodur Sheralizoda, Chair of the Environmental Protection Committee under the Tajik government: “Although our contribution to global emissions is minimal, we are one of the most climate-vulnerable countries in the world. The CCDR advises the government to improve production efficiency, foster innovative technologies, and create green jobs to reduce our susceptibility to climate-related challenges.” The report warns that Tajikistan already faces high risks of floods, earthquakes, and landslides, with potential infrastructure and agricultural losses that could lower GDP by 5-6% by 2050. The strategic Vakhsh River Basin, which produces 90% of the country’s electricity, underscores the dual challenges of climate and development. Annual costs of land degradation are estimated at $325 million, with further increases anticipated. Additionally, air pollution remains a major health risk, accounting for 84 deaths per 100,000 people—Central Asia’s second-highest rate. A green transition could deliver substantial benefits. By 2050, reduced healthcare costs from lower air pollution, fewer road accidents, and improved road conditions could save over $3.5 billion. Investments in renewable energy, including hydro, solar, and geothermal, as well as in energy efficiency, promise new employment opportunities across sectors. The report advises the Tajik government to fast-track low-carbon development to strengthen economic growth, energy security, export potential, and job creation, all while enhancing air quality. Achieving these goals will require significant investments: Tajikistan needs around $17 billion, in addition to the $79 billion required for the government’s reform agenda from 2025 to 2050. Private sector investments, particularly in energy, industry, and agriculture, will be essential. Recognizing that the financial needs for this transformation exceed domestic resources, the report underscores the importance of external support. Tajikistan will need substantial technical and financial assistance from international bodies, climate funds, and development partners to fulfill its climate and development goals.

Infrastructure Development International investment International Finance Corporation Green economy Banking Finance

IFC Increases Investments in Central Asia

The International Finance Corporation (IFC), a member of the World Bank Group, says it committed $1.04 billion in Central Asia in the fiscal year 2024, which started on July 1, 2023, and ended on June 30, 2024. The funds comprised over $400 million in long-term financing from IFC’s account, $600 million in mobilization, and $35 million in short-term trade and supply-chain finance to facilitate trade flows. The funds, coupled with advisory support, aimed to increase private sector participation, create jobs, boost financial inclusion, bolster infrastructure, and support the region’s green transition. Priority sectors included finance, capital markets, renewable energy, agriculture, and infrastructure. Over the last fiscal year, IFC-supported projects in the Central Asian region created about 35,000 jobs, including more than 13,000 for women. Strengthening local financial markets is among its key objectives. To that end, the IFC invested $228 million in 10 financial institutions in Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan, with up to half earmarked for women entrepreneurs and rural enterprises. The IFC also supported local financial institutions in growing their micro, small, and medium enterprises (MSME) businesses, advancing climate finance and digital transformation, and issuing the first-ever sustainability, social, and green bonds. The IFC and the World Bank financed a new solar plant with the country’s first battery energy storage system to support Uzbekistan's green transition and climate action. The plant is expected to provide electricity access to approximately 75,000 households in the Bukhara region. In Tajikistan, the IFC invested in the country’s first green bond, issued by Eskhata Bank. The bond will support climate-smart projects and MSMEs undertaking environmental projects. In Kazakhstan and Kyrgyzstan, in addition to investments to increase financial inclusion, the IFC has been evaluating new advisory and investment opportunities, including PPPs in areas such as drinking water supply, renewable energy (including geothermal solutions for heating and cooling), railway projects as part of the Middle Corridor, and the first municipal green bonds in Central Asia. The IFC also supports Kazakhstan's accelerated methane mitigation efforts, which align with the Global Methane Pledge. Wiebke Schloemer, the IFC’s Director for Türkiye and Central Asia, reiterated its commitment to the region: “Over the past 20 years, the region has seen substantial development, with an average annual growth rate of 6.2 percent. Central Asia must leverage the green transition to boost private investment, strengthen connectivity, and reduce resource dependency to continue this growth. The IFC aims to address these goals and continue to deliver solutions where we are needed most — from increasing access to finance for farmers and women entrepreneurs to creating jobs to continue to help countries transition to net zero.”

Regional Development International Cooperation Business Support International investment Economic Cooperation Silk Road Economic Belt

American Chamber of Commerce in Kyrgyzstan: Future Development and Investment Climate

As Central Asia continues to become a regional hub for trade and innovation, The Times of Central Asia spoke with Altynai Asanova, the Executive Director of the American Chamber of Commerce in the Kyrgyz Republic, to discuss the investment climate in Kyrgyzstan, economic trends, and future development. TCA: I see that your background is primarily in hotel management and sales; how did you transition from this role to your current position? “My background includes 18 years in the hotel business. Ten years at Hyatt, starting in food and beverage and ending in the hotel sales department; then, I worked at the Orion Hotel for the pre-opening and opening stage for about three years. After this, I was hired by Sheraton, one of the Marriott chain hotels, to work on the pre-opening and opening stage for two years. I was still involved with the business audience and wanted to continue working with the stakeholders and companies who know me.” TCA: How would you describe the hospitality industry in Kyrgyzstan? Is it mainly in Bishkek or other regions? “It is developing; before, it was only the Hyatt. Now, there are three or four chain hotels in Bishkek. It is good that there are more players in the market. It is developing day by day. The development is mainly in Bishkek, but we have good perspectives for Issyk Kul as long as the roads and infrastructure are completed. The chain hotels are also becoming interested in Issyk Kul. The good thing is that enough businessmen understand and accept the market challenges in Issyk Kul. They know it will not be financially stable at launch since the busy season is only about 50 days. But if the hotels provide full service and comfort, people will travel there for the full season.” TCA: Stepping away from hospitality, what did American investment in Kyrgyzstan look like ten years ago?” “Before, there was an American base in Kyrgyzstan. During that time, the hospitality business was amazing. The rates were high considering the charter flights and pilots who needed a place to stay. Now, these rooms are listed at the lowest rates. At that time, the Hyatt was the only five-star hotel in Bishkek, so all the American guests were staying at the Hyatt. The investment climate dropped after the U.S.-Kyrgyzstan agreement ended. There is opportunity, but it goes slowly.” TCA: Since then, what has changed in the business climate? “Business-wise, if we look from the angle of the association, we do not have any purely American business; we have franchise members: KFC, Hyatt, Sheraton, and some banks. It would be nice to have purely American [businesses] here.” TCA: Who are the current major investors in the Kyrgyz market? And is competition relevant to win contracts with local companies? “China, Russia, Kazakhstan, the Netherlands, and Turkey are the main investors. Before making any contracts or tenders, we need to understand the possibilities of our market, ‘Is our country ready to accept this level of business?’ The first question...