Uzbekistan achieved a major step in its transition to a green economy by mobilizing $1bn in sustainable investments. The funds were raised through green bonds issued by partner banks on the London Stock Exchange, supporting the green rehabilitation of the Republic of Karakalpakstan, a region heavily impacted by the Aral Sea crisis.
This initiative, known as the Aral Sea Green Rehabilitation Investment Project (GRIP), was launched at a seminar in Tashkent on November 27. The project is being implemented in collaboration with the Global Green Growth Institute (GGGI) and funded by the Korean International Cooperation Agency (KOICA).
Aaron Russell, GGGI’s representative in Uzbekistan, highlighted the importance of the project, stating, “Today we are gathered here to learn about the achievements of the KOICA-based project working group, in which we have mobilized $1bn in investments for Uzbekistan. This project is aimed at promoting climate-sustainable and economically efficient agriculture, directly supporting the president’s initiative to declare next year as the year of environmental protection and the green economy.”
The GRIP project targets four districts in Karakalpakstan: Bozatau, Cimbai, Karauizak, and Kegeyli. These areas, heavily affected by natural disasters, will benefit from climate-optimized agriculture (CSA), green investments, and enhanced environmental sustainability.
A key aspect of the initiative is its focus on building local capacity for green finance. The project is working closely with financial institutions like SQB and Agrobank to implement environmental, social, and governance (ESG) principles and to establish global standards for sustainable financing. These efforts are expected to guide banks in incorporating green factors into their financing, refinancing, and investment processes.
Mels Kosnazarov, Deputy Head of the Karakalpak Republican Department of the Chamber of Commerce and Industry, noted, “At the moment, our farmers are very interested and are implementing green technologies in Karakalpakstan. Together with our partners and GGGI, we have conducted several field seminars and trainings, where farmers saw the advantages of these technologies firsthand.”
Additionally, a climate-sensitive agriculture financing fund will be established for SQB. In collaboration with the Ministry of Agriculture, GGGI has also developed a comprehensive process to review new projects and create a portfolio of investment and grant opportunities.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)