Climate change issues have become a focal point in Uzbekistan, significantly influencing the nation's ongoing reforms, economic growth, poverty reduction, and efforts toward environmental and food security, allocating UZS 26.3 trillion ($2.1bn) in 2022. Legislative acts have been enacted to propel Uzbekistan toward a "green" economy, fostering sustainable economic growth and environmental protection, the report of UNDP highlights.

Legislative Framework and Strategies

To support this transition, legislative acts spanning 2019-2030 aim to stimulate "green" economic growth, encourage natural resource efficiency, attract "green" investments, and mitigate environmental crises. Strategies, such as the Development of Agriculture and Road Service Reform, and concepts for water sector development, align with Uzbekistan's commitment to climate-conscious initiatives.

Increasing Climate Expenditures

In line with the growing focus on renewable energy, resource conservation, and climate resilience, Uzbekistan's State budget has witnessed a rise in expenditures. The Climate-Positive budget expenditure increased both in absolute numbers and demonstrated a year-on-year percentage change growth. The share of Climate-Positive expenditure to total State budget expenditure/GDP fluctuated from 10.3/2.5% in 2020 to 11.1/3.0% in 2022, amounting to UZS 26.3 trillion ($2.1bn) in 2022.

Year-on-year change from 2020 to 2021 stood at 30.7%, while for 2021-2022 it was 25.7%. Climate positive expenditure out of that was 13% for 2020-2021 and 56.5% for 2021-2022.

Sectoral Distribution of Climate Expenditures

The sectoral distribution of climate expenditures reflects diverse areas such as agriculture, forestry, transport, and water supply. Agriculture and forestry claim over 40% of Climate-Positive expenditures, with key areas focusing on rational land and water resource use.

Key Expenditures and Strategies

• Agriculture Sector: Investments in plant pest control, agrochemical services, and subsidies for machinery align with strategies for resource-efficient and climate-resilient agricultural practices.

• Forestry Sector: Expenditures for maintaining the central apparatus and national parks aim to ensure effective forest management, contributing to CO2 sequestration and habitat preservation.

• Transportation Sector: Investments in street and road infrastructure aim to increase the adaptive capacity of climate-vulnerable groups.

• Water Supply Sector: Expenditures focus on maintaining water systems, modernization of water facilities, and introduction of resource-saving technologies to enhance water supply quality and availability.

The table above indicates a 76.6% change in total budget expenditures. Notably, the biggest increase was in general public services at 1,362.8%, and the lowest dip was observed in environmental protection, standing at -99.6%.

Achievements and Challenges

In the review period, the financial performance of budget measures related to climate change fluctuated, influenced by the COVID-19 crisis. Despite the challenges, Uzbekistan's commitment to climate-conscious initiatives and the increasing financial allocation towards climate-positive measures showcases the nation's dedication to sustainable development.

Future Prospects

As Uzbekistan navigates global challenges and continues structural reforms, the trajectory of climate expenditures will be crucial. The nation's strategies align with international standards, setting the stage for a resilient and sustainable future.

Earlier it was reported that Uzbekistan has once again solidified its status as the primary recipient of funding from the European Bank for Reconstruction and Development (EBRD) in Central Asia, marking the fourth consecutive year of leading the region with a substantial inflow of over €700mn ($760mn) in 2023.

This news article is based on the "Climate Public Expenditure and Institutional Review: Uzbekistan," highlighting the trends and financial performance of Uzbekistan's climate-related expenditures from 2020 to 2022.

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