The European Bank for Reconstruction and Development (EBRD) is amplifying its commitment to environmental sustainability in Uzbekistan through a strategic collaboration with Hamkorbank, a leading private domestic lender. The EBRD's infusion of up to $10mn, as part of the Uzbekistan Green Economy Financing Facility II (GEFF II Uzbekistan), is set to catalyze green innovation and broaden access to eco-friendly financing.
This financial support aims to empower Hamkorbank to extend its energy efficiency lending initiatives to businesses and households throughout Uzbekistan. Recipients of the funds are expected to channel the resources into modernizing production processes, enhancing energy efficiency measures, and fortifying their climate resilience.
The GEFF Uzbekistan II initiative receives substantial backing from the Climate Investment Funds (CIF), with contributions from Denmark, the Netherlands, Switzerland, and the United Kingdom. The Action for Equality and Gender Multi-donor Cooperation Fund (A4EG), supported by Japan, Lithuania, and Taipei China, is also a key contributor, emphasizing the promotion of inclusive green lending.
Part of the EBRD's Green Economy Transition (GET) approach, the GEFF Uzbekistan II aligns with the bank's ambition to become a predominantly green institution by 2025. The GET approach entails directing over 50% of the EBRD's annual business volume toward green financing by the specified timeline. Since 2006, the EBRD has committed €49bn to green investments, fostering over 2,600 green projects poised to annually reduce carbon emissions by an estimated 124mn tonnes.
In the Uzbekistan context, the EBRD's total investments to date stand at approximately €4.4bn across 146 projects.
On December 12, Hamkorbank signed a $10mn contract with EBRD Youth in Business program.
Earlier Daryo reported that the Ministry of Economy and Finance in Uzbekistan has collaborated with the German Agency for International Cooperation (GIZ) to launch a €9mn green industrialization project called "Private Sector and Economic Policy Advice in Uzbekistan." To support this endeavor, the European Bank for Reconstruction and Development (EBRD) has pledged a $45mn loan to Ipak Yuli Bank, specifically directed at promoting green lending and trade.
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