Sustainable Development - The Times Of Central Asia

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Green Transition

Tajikistan Leads Central Asia in Energy Transition Index

Tajikistan has secured the top position among Central Asian countries in the World Economic Forum’s (WEF) annual Energy Transition Index (ETI). Ranking 71st out of 120 nations, Tajikistan achieved a score of 53.6. This performance places Tajikistan ahead of its regional neighbors, including Kyrgyzstan, which ranked 80th with a score of 52.7, and Kazakhstan, which came in 98th with 50.1. Uzbekistan and Turkmenistan were not included in the ranking. The ETI evaluates global energy systems based on two primary criteria: Energy system efficiency (60% weighting); and readiness for a sustainable energy transition (40% weighting). Key factors influencing scores include energy affordability, sustainability, innovation, infrastructure, policy support, and investment activity. While Tajikistan’s score of 53.6 was slightly below the global average of 56.5, it outperformed many other nations in Central Asia. Globally, Northern European countries dominated the rankings. Sweden led the index with 78.4 points, followed by Denmark (75.2) and Finland (74.5). Among the Commonwealth of Independent States (CIS) and Caspian countries, Azerbaijan ranked highest, securing 38th place with a score of 60.3. The Times of Central Asia previously reported on Tajikistan’s decision to rejoin Central Asia’s unified energy system. Originally established in 1960, the system interconnected the power networks of Uzbekistan, southern Kyrgyzstan, northern Tajikistan, and southern Kazakhstan’s Shymkent region. These systems were linked by 110- and 220-kilovolt power lines and operated independently of the Soviet Union’s central energy network. Tajikistan’s leadership in the Energy Transition Index reflects its ongoing commitment to energy sustainability and regional collaboration.

Green Transition

Fossil-Fuel Rich UAE Drives Central Asia’s Green Energy Transition

Central Asian nations, especially Kazakhstan and Uzbekistan, are seeking to develop closer ties with the oil-rich United Arab Emirates. What they need from the Gulf state is not fossil fuels, but renewable energy technology and investment in their green energy sectors. Despite being a significant oil-exporter, the UAE has managed in recent years to position itself as a regional leader in solar energy and photovoltaic solar projects. As a result, it now has global aspirations in the renewable energy industry. The Gulf country, through its semi-government-owned company, Masdar, has already invested billions of dollars in the construction of wind farms and solar plants all over the world – from the Bahamas and Barbados to Australia, as well as several African and European nations. Central Asia is no exception. In the region, the green energy giant is particularly active in Uzbekistan and Kazakhstan. It is, therefore, no surprise that, on January 14, two regional leaders, Shavkat Mirziyoyev and Kassym-Jomart Tokayev, were major guests at the Abu Dhabi Sustainability Week, a global platform focused on accelerating sustainability efforts. [caption id="attachment_27597" align="aligncenter" width="1280"] President Tokayev of Kazakhstan speaking at the Abu Dhabi Sustainability Week; image: TCA, Nikola Mikovic[/caption] Their visit to the UAE signals a strong push for a green energy transition at home. For Tashkent and Astana, cooperation with Abu Dhabi in the field of green energy can help them to achieve their ambitious goals and reduce reliance on fossil fuels, despite both being significant producers of natural gas and oil. “Together with our foreign partners, we are currently implementing more than 50 large energy projects worth a total of $26 billion,” Mirziyoyev stressed, pointing out that by 2030, the share of renewable energy sources in the country will reach 54%. [caption id="attachment_27593" align="aligncenter" width="2560"] President of Uzbekistan, Shavkat Mirziyoyev backstage at the Abu Dhabi Sustainability Week; image: TCA, Nikola Mikovic[/caption] In his view, Central Asia should turn into a “center of green economy.” The Director-General of the International Renewable Energy Agency (IRENA), Francesco La Camera, seems to share this stance. “Central Asia can play a stronger and leading role in the global energy transition. I’m confident this new partnership can accelerate the pipeline of renewable energy projects and drive green industrialization,” La Camera said at the 15th session of the IRENA Assembly, held in the UAE capital two days prior to the meetings Mirziyoyev and Tokayev had with the UAE’s leaders. According to the Uzbek President, Tashkent is interested in jointly realizing the potential of Central Asia in solar, wind, and hydro energy, as well as in developing the production of green hydrogen. Fully aware of the Central Asian state’s green energy potential, Masdar is committed to investing $2 billion in Tashkent’s clean energy projects with a total capacity of more than two gigawatts. In the most populated Central Asian nation, the UAE’s semi-state-owned company is already involved in the construction of both solar plants and wind farms. [caption id="attachment_27594" align="aligncenter" width="2560"] Abdulaziz Alobaidli, Masdar’s Chief Operating Officer, at the Abu...

Economic Growth

Uzbekistan’s Economic Transformation and Future Goals Take Center Stage

Uzbekistan’s economic progress and future ambitions are in focus as the Indian magazine Business Central Asia dedicates its latest issue to the country’s development. Highlighting key points from President Shavkat Mirziyoyev’s address to the Legislative Chamber of the Oliy Majlis, the feature showcases Uzbekistan’s achievements and ambitious goals for the years ahead. The article highlights Uzbekistan’s remarkable economic transformation. Since the early 2000s, the country’s economy has doubled, surpassing the $100 billion mark. By 2024, per capita income is expected to reach $3,000, while exports have grown to exceed $25 billion for the first time. Gold and foreign exchange reserves have also seen substantial growth, surpassing $40 billion. Looking to the future, the Uzbekistan-2030 strategy outlines ambitious targets to further accelerate economic growth. The plan envisions increasing GDP to $160 billion, with a projected $110 billion milestone this year. If current growth rates are sustained, Uzbekistan’s economy could reach $200 billion by 2030, significantly improving living standards and the overall quality of life for its citizens. Ensuring macroeconomic stability is a key priority in the government’s roadmap. Over the next five years, Uzbekistan aims to sustain annual growth of 6-7%, expand the private sector’s share of the economy to 85%, and launch large-scale public-private partnership projects. The feature also emphasizes Uzbekistan’s long-term economic resilience. According to the World Bank, the country is poised to rank among the top three fastest-growing economies in Europe and Central Asia in 2024, further validating its development strategy. Uzbekistan’s leadership remains committed to maintaining growth momentum while addressing structural reforms. With a strong focus on sustainable development, the government’s policies aim to enhance economic opportunities and ensure inclusive growth for all segments of the population.

International Finance

AIIB Approves $250 Million to Support Uzbekistan’s Climate Transition

The Asian Infrastructure Investment Bank (AIIB) has approved a $250 million program to support Uzbekistan’s transition to a green and sustainable economy. The funding will help Uzbekistan achieve its goal of reducing greenhouse gas emissions per unit of GDP by 35% by 2030, compared to 2010 levels, and foster sustainable economic growth. The program focuses on three key areas. First, it aims to strengthen governance by improving climate policies and integrating climate goals into national decision-making processes. Second, it addresses better management of water and land resources, reduces climate risks, and supports economic development. Finally, the program promotes low-carbon solutions in energy, transportation, and e-mobility, with a strong emphasis on energy efficiency and sustainable practices. The initiative encourages state-owned enterprises to adopt climate risk disclosure practices and expand renewable energy projects. AIIB Vice President Konstantin Limitovskiy emphasized the importance of the collaboration between AIIB, the Asian Development Bank (ADB), and Uzbekistan. “By integrating climate priorities into economic planning, enhancing adaptation measures, and driving decarbonization in critical sectors like energy and transport, this program plays a key role in supporting Uzbekistan’s efforts to implement its 2030 national strategy and fulfill its Nationally Determined Contribution under the Paris Agreement,” he said. Kanokpan Lao-Araya, the ADB Country Director for Uzbekistan, highlighted that climate change presents a substantial challenge to the country’s long-term economic stability. She emphasized that the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) are collaborating to support Uzbekistan in achieving resilient, inclusive, and low-carbon economic growth. Uzbekistan’s Ministry of Economy and Finance will lead the program, with support from other government agencies. AIIB and ADB will oversee its implementation to ensure it aligns with Uzbekistan’s broader development goals.

Sustainable Development

Uzbekistan Joins Global Alliance Against Hunger and Poverty

The Republic of Uzbekistan has officially become a member of the Global Alliance to Combat Hunger and Poverty, marking a significant step toward achieving the Sustainable Development Goals and enhancing global efforts to improve food security. This decision reflects Uzbekistan’s commitment to addressing pressing challenges related to hunger, poverty, and inequality on a global scale. By joining the alliance, the country gains access to valuable opportunities for knowledge exchange, international investment, and collaboration on joint programs with other nations and organizations. To date, over 100 countries have joined this initiative. Earlier, on October 9, the United States announced the delivery of 131 tons of food aid to Uzbekistan through USAID. The package, valued at over $435,000, includes vegetables and legumes intended to support more than 33,000 people across 145 facilities, including tuberculosis centers, orphanages, and psychiatric institutions. “At USAID, we collaborate with our partners to deliver life-saving food assistance to the most vulnerable communities in Uzbekistan. By addressing malnutrition and ensuring access to adequate, safe, and nutritious food, we empower individuals to lead healthy, productive lives and build a more stable and resilient world for everyone,” said Anjali Kaur, deputy assistant administrator of USAID’s Bureau for Asia.

Sustainable Development

Fueling Growth: IFC Strategic Initiatives for Sustainable Development in Central Asia – An Interview With Hela Cheikhrouhou

With its headquarters in Washington, D.C. the International Finance Corporation (IFC) was established in 1956 as the private-sector arm of the World Bank. The institution offers advisory, and asset-management services to promote investment in developing countries. Recent ventures in Central Asia include solar power projects in Uzbekistan and Kyrgyzstan, and an entrepreneurship scheme for women and young people in Tajikistan. TCA spoke with Hela Cheikhrouhou, IFC Vice President for the Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan about the IFC’s work in Central Asia. TCA: Can you please give us an overview of IFC's performance in Central Asia for fiscal year 2024 (July 1, 2023, to June 30, 2024)? IFC had a pivotal year in Central Asia, making strides in sustainable development and inclusive growth across the region. Our efforts concentrated on climate finance, infrastructure, agriculture, and supporting smaller businesses. By coupling investments with advisory support, we helped expand the role of the private sector, creating jobs, promoting financial inclusion, strengthening infrastructure, and supporting the region's green transition. In the fiscal year 2024, IFC committed over $1 billion to Central Asia. This includes about $400 million in long-term financing from our own account, $600 million in mobilization, and $35 million in short-term trade and supply-chain finance to facilitate trade flows. Alongside these financial commitments, we engaged in advisory projects focused on improving financial inclusion, developing innovative public-private partnerships (PPPs), and advancing climate initiatives and gender equality. Our results this year underscore our commitment to fostering sustainable, inclusive growth, and enhancing the resilience and sustainability of Central Asian economies. TCA: Can you highlight some of the IFC’s key achievements in Central Asia this year? In addition to the strong financial commitments mentioned earlier, IFC expanded its presence in various sectors, including finance, capital markets, renewable energy, agriculture, and infrastructure. Through our advisory services, we helped structure impactful PPPs at the sectoral level. A major focus this year has been strengthening local financial markets. IFC invested $228 million across ten financial institutions in Kazakhstan, the Kyrgyz Republic, Tajikistan, and Uzbekistan. Up to half this amount was dedicated to supporting women entrepreneurs and rural enterprises. We also helped these financial institutions expand portfolios related to their micro, small, and medium enterprise (MSME) businesses, advance climate finance, foster digital transformation, and issue the region’s first sustainability, social, and green bonds. Supporting MSMEs has enabled entrepreneurs to grow their businesses and generate employment. In the past fiscal year alone, IFC-supported projects created around 35,000 direct jobs, including opportunities for over 13,000 women across the region. These efforts have been further bolstered by targeted investments and projects in individual countries across the region. In Uzbekistan, IFC, together with the World Bank, financed a new solar plant equipped with the country’s first battery energy storage system. Once completed, the plant is expected to provide electricity access to around 75,000 households in the Bukhara region. As part of its broader support for the Uzbek government’s efforts to reform its chemical sector, IFC assisted the State Asset Management Agency in privatizing Ferganaazot,...