The Open Joint-Stock Company "Eskhata Bank" has become the first issuer of green bonds in Tajikistan with $10mn support of IFC. These bonds mark a pivotal step towards fostering sustainable development and combating climate change in the region, IFC reports.
A Step Towards Green Economy Development
The issuance of these bonds aligns with Tajikistan's Green Economy Development Strategy for 2023-2037. This strategy aims to nurture a green economy by promoting environmental sustainability, mitigating climate change impacts, and optimizing natural resource utilization. By attracting capital and deploying energy-efficient technologies, the strategy seeks to facilitate the transition towards a greener future.
Proceeds from the sale of these green bonds will be channeled towards financing environmental protection initiatives and ecological enhancements. This strategic allocation of funds underscores the integral role of these securities in advancing the objectives of the green economy.
Commitment to Renewable Energy
"IFC's investment in Eskhata Bank's green bond is a testament to our dedication to supporting MSMEs in driving environmental sustainability," said Akmaljon Saifidinov, Eskhata Bank's CEO. "By channeling funds towards climate-smart projects, we are helping to build a more resilient and sustainable economy in Tajikistan."
Tajikistan's commitment to renewable energy is underscored by its ambitious targets set forth by the President. By 2030, the country aims to establish power plants capable of generating at least 1000MW from renewable sources such as solar and wind energy. This transition towards green energy is projected to culminate in 100% reliance on renewable energy sources by 2032, positioning Tajikistan as a global leader in sustainable energy production.
Upholding International Climate Agreements
Tajikistan's initiatives are in line with its commitments under the Paris Agreement, which seeks to curb greenhouse gas emissions and combat climate change. The country has pledged to reduce emissions by 80-90% above 1990 levels, primarily through the expansion of renewable energy infrastructure.
Harnessing Capital Markets for Climate Action
The issuance of green bonds underscores Tajikistan's commitment to mobilizing private capital for climate and environmental investments. By leveraging capital markets, private companies, and public entities can access financing to support climate initiatives and align with global climate goals.
Earlier, it was reported that on January 18, Saipro Group made history by becoming the first private company in Uzbekistan to issue "green" bonds, with a total value of UZS 50bn ($4mn), and each bond valued at UZS 50mn ($4,047).
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