Uzbekistan prepares to introduce national carbon pricing system
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Uzbekistan prepares to introduce national carbon pricing system

Uzbekistan plans to transition from the current Monitoring, Reporting, and Verification (MRV) emissions system to implementing national carbon pricing mechanisms and industrial decarbonization measures.

Discussions on this topic took place at a seminar on November 3, which included representatives from state ministries, agencies, and industrial enterprises. The event was organized by the Ministry of Economy and Finance of Uzbekistan, the Green Economy Projects Center under the ministry, and the German Agency for International Cooperation (GIZ) as part of the 'Green Industrialization' project. International expert Zsolt Lengyel participated in the seminar.

The main focus of the discussions was on the practical application of Emissions Trading Systems (ETS) and carbon pricing mechanisms for industrial modernization, accelerating the decarbonization process, and assisting Uzbekistan in meeting its Nationally Determined Contributions (NDCs) within its climate commitments.

Participants studied the experience of European Union countries in implementing MRV systems and carbon regulation mechanisms. Using the example of the German agency DEHSt, the seminar presented the principles of emissions trading, database management, emissions monitoring, and independent data verification, as well as the allocation of emission quotas, including auctions.

Differences between emission quotas and carbon credits obtained through individual projects were also discussed, along with measures to prevent double counting. Participants examined how revenues from carbon pricing can be directed towards industrial decarbonization and stimulating green investments.

Another important topic was the European Union's Carbon Border Adjustment Mechanism (CBAM) and its potential impact on the competitiveness of Uzbek producers, especially manufacturers of mineral fertilizers and other export-oriented products. The seminar also addressed issues ensuring that carbon-related payments contribute to the development of the country's domestic economy.

At the conclusion of the discussions, participants emphasized the need to create a reliable historical database of emissions at the enterprise level. Such data will serve as the basis for developing rules for allocating emission quotas and introducing national carbon pricing mechanisms.

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Uzbekistan plans to create an association for greenhouse operators
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Uzbekistan plans to create an association for greenhouse operators

Uzbekistan intends to establish a permanent association for greenhouse operators. The goal of this initiative is to represent the business interests of the industry, resolve sectoral issues, and strengthen interaction between greenhouse enterprises and state bodies.

The issue was discussed at a meeting with representatives of the greenhouse industry, which included members of the Chamber of Commerce and Industry. The proposed association will collect proposals and requests from greenhouse operators and forward them to relevant state agencies.

Furthermore, the association will cooperate with specialized organizations to find solutions to problems affecting this sector. Participants in the meeting paid special attention to the conditions under which greenhouse enterprises can continue their operations.

According to the Cabinet of Ministers decree of October 22, greenhouse enterprise activities are permitted provided that established environmental requirements are met. These same rules specify that greenhouse operators will not need to replace previously installed filtration systems if the equipment complies with current standards.

Enterprises can continue to use their existing equipment if they possess the necessary certificates and permits. The planned association is designed to improve communication between greenhouse operators and state institutions, ensuring more timely consideration of industry issues.

The initiative is also aimed at creating a permanent mechanism through which the greenhouse business can raise operational and regulatory questions and jointly find solutions with competent authorities.

Uzbekistan discusses financing the transition to a low-carbon economy
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Uzbekistan discusses financing the transition to a low-carbon economy

The Center for Economic Research and Reforms (CERR) held an expert seminar titled 'Paths to Decarbonization in Uzbekistan: Challenges and Opportunities' to examine scenarios for long-term greenhouse gas emission reduction and methods for financing the transition to a low-carbon economy.

The event gathered representatives from the Ministry of Economy and Finance, the French Development Agency (AFD), the Institute of Climate Economics (I4CE), the Institute for Sustainable Development and International Relations (IDDRI), experts from the 'Deep Decarbonization Pathways' (DDP) initiative, and representatives from Adelante.

The team of CERR experts, led by Abdurashid Bozorov, presented the results of a study on long-term decarbonization scenarios for the Uzbek economy. This work was conducted with support from AFD and methodological assistance from IDDRI and the DDP network.

The analysis utilizes the Pathways Designer model to assess how various development scenarios in energy, industry, transport, construction, and other sectors may affect greenhouse gas emissions up to and beyond 2050.

Work on the model began in 2025 with support from the Organisation for Economic Co-operation and Development (OECD) as part of the SIPA project. In 2026, with the help of AFD, the study was expanded to include agriculture, forestry, and other land use (AFOLU) in the comprehensive assessment for the first time.

The study is based on national statistics and strategic documents of Uzbekistan, allowing for the comparison of emission reduction scenarios with the country's socio-economic development priorities and the evaluation of the potential impact of policy decisions on individual sectors.

This research is being conducted in the context of updating Uzbekistan's climate commitments. According to the revised Nationally Determined Contribution (NDC 3.0), the country aims to reduce greenhouse gas emissions per unit of GDP by 50% by 2035 compared to 2010 levels.

According to NDC 3.0, the financing needs for emission reduction measures are estimated at $33.7 billion until 2030 and nearly $70 billion until 2035. The funding gap until 2030 is $9.5 billion.

I4CE experts Luisa Kessler and Solen Metayer described the main approaches to financing long-term climate strategies and presented the LTS Dashboard—an analytical tool for assessing investment needs and planning financing for low-carbon development strategies.

Participants discussed how this tool can be adapted to the conditions of Uzbekistan, taking into account national climate goals, existing planning mechanisms, and data availability.

Particular attention was paid to public and private financing, green bonds, public-private partnership mechanisms, and international climate funds.

Sara Dia, an Adelante expert, presented an assessment of the implementation of Uzbekistan's Green Growth Strategic Framework.

Georgy Safonov, an expert from DEXA, IDDRI, and the DDP initiative, discussed the comprehensive assessment of greenhouse gas emission reduction modeling in the Uzbek economy. The discussion focused on the links between sectoral decarbonization scenarios, economic development, and achieving long-term climate goals.

Participants reviewed the prospects for Uzbekistan's socio-economic development until and beyond 2050, the implementation of low-carbon technologies, sustainable financing, investment climate, and international cooperation.

The discussions aimed to refine long-term decarbonization scenarios, determine investment needs, and improve climate policy monitoring mechanisms.

Uzbekistan introduces environmental standards for greenhouses in Tashkent with financial support
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Uzbekistan introduces environmental standards for greenhouses in Tashkent with financial support

Uzbekistan has approved a special environmental regime for greenhouse farms in Tashkent and five districts of the Tashkent region. These rules establish requirements for heating systems, emission monitoring, and waste management, while also providing financial assistance for ecological modernization.

The new rules are enshrined in Government Decree No. 586 and apply to the capital, as well as the districts of Yukorichirk, Kibray, Yangiyul, Zangiata, and Tashkent. According to the press service of the National Committee on Ecology and Climate Change, the preparation of relevant proposals for the president was completed on October 13.

Requirements for energy sources and fuel

According to this decree, greenhouse farms in the designated zone equipped with heating systems must use natural gas (including liquefied gas), electricity, geothermal or solar energy, or thermal waste generated by thermal power plants. A positive conclusion from the state environmental expertise is required to begin operations.

Greenhouses currently using solid fuels such as coal, biofuel briquettes, and pellets must switch to the specified energy sources by December 1. The use of solid fuels will only be permitted if established environmental standards are met.

These standards include automated control of fuel supply and combustion, installation of dust and gas purification equipment meeting set efficiency standards, and equipping boilers with continuous emission monitoring systems.

Continuous Emission Monitoring Systems (CEMS) must comply with national standards, integrate with the information systems of the Ecology Committee, and transmit data in real time. Boilers, pollution control equipment, and monitoring systems must have certificates of conformity.

Greenhouse operators are also obliged to install online cameras for constant observation of boiler operation and flue gas emissions. Cameras, monitoring systems, and pollution control equipment must be supported by uninterruptible power supplies and backup generators.

Greenhouse owners must organize the collection, transportation, and disposal of ash, heavy metals, scale, sludge, and other toxic substances in accordance with established procedures. It is forbidden to make changes to the equipment that affect its operation and are not provided for in the technical documentation.

The decree separately prohibits the use of car tires, bitumen, fuel oil, plastic, and polymer films, synthetic cardboard, rubber, wool fibers, used oils, household and industrial waste, and materials of similar composition as fuel.

Financial support for ecological modernization

Until January 1, 2028, greenhouse farms in this zone will receive compensation equal to 50% of the cost of purchasing equipment for dust and gas purification, boilers, energy-saving screens, and energy-efficient technologies. Subsidies will also cover costs for heating equipment powered by electricity, geothermal, and solar energy, as well as cogeneration units. The maximum payment will be 50 million sums per hectare of greenhouse area.

During 2026–2027, commercial banks will provide loans to support the transition to heating systems using electricity, geothermal, and solar energy, as well as cogeneration. These loans will have a seven-year term with a three-year grace period and an annual interest rate of 14%, of which four percentage points will be the bank's margin.

Loans can cover up to 50% of the project cost, but no more than 3 billion sums per hectare. Financing of up to 350 million sums per station is available for the purchase of CEMS equipment. These funds will be provided under a tripartite agreement with repayment over five years without interest.

Beneficiaries must comply with technical requirements, install the equipment, integrate it into the Ecology Committee's information system, and ensure uninterrupted data transmission. In case of breach of contractual obligations—including failure to install equipment, integrate it into the system, or make timely payments after written warning—the stations may be dismantled and seized according to the contract. Overdue debts will be collected without the debtor's consent.

The decree also establishes environmental standards for boilers in other industries that use fuel negatively affecting air quality. Enterprises impacting the environment will be classified into red, yellow, and green categories depending on the level of environmental safety. Corresponding requirements will be included in legislation.

Furthermore, until January 1, 2030, the import of equipment intended for the creation and modernization of greenhouses and manufactured outside Uzbekistan will be exempt from customs duties. This benefit applies to dust and gas purification equipment, energy-efficient boilers, cogeneration units, equipment for using geothermal and solar energy, automated emission monitoring systems and their components.

Filtrate treatment and water reuse

The decree provides for the treatment of hazardous liquid waste generated in the heating system filters of greenhouses, as well as hydroponic drainage solution, known as filtrate, for subsequent use as technical water. Construction of a temporary reservoir for storing filtrate in the eco-industrial zone in the Akhangaran district is planned by January 1, 2027. The operator responsible for filtrate processing will be selected through a competitive selection process by June 1, 2027.

The Tashkent region administration must allocate a land plot in the eco-industrial zone by November 1 of this year. The construction of the reservoir can be carried out in stages within the framework of relevant design documentation and in accordance with urban planning standards and regulations.

Greenhouse owners, regardless of ownership form, are obliged to transfer the filtrate they generate to the appointed operator at established tariffs. The Committee noted that the modernization of greenhouse farms should contribute to improving air quality in Tashkent and surrounding areas through the introduction of modern filtration systems, automated monitoring, and energy-efficient technologies. The Committee emphasized that these measures aim to balance business development and efficient resource use with the citizens' right to a favorable environment.

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