EBRD and GCF launch Uzbekistan GEFF Greening Financial Systems framework

• EBRD and Green Climate Fund launch Greening Financial Systems framework in Uzbekistan
• More households and businesses to invest in green and innovative technologies
• New framework builds on successful GEFF Uzbekistan programme

The European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) are encouraging more households and businesses in Uzbekistan to invest in green and innovative technologies by launching the next phase of the Green Economy Financing Facility (GEFF), the Greening Financial Systems (GFS) framework, in the country. The GFS will support investments that promote the efficient use of water, sustainable land management and greater resource efficiency.

Hamkorbank, Uzbekistan’s third-largest lender, will receive a financing package of up to US$ 20 million (€17.8million) under the GFS and will become the first local bank to join the framework. It will use the funds (available in synthetic Uzbek som or in US dollars) to support private-sector investments in climate change mitigation (such as energy-efficiency measures) and adaptation (such as agricultural irrigation) across the country.

The package consists of an EBRD loan of up to US$ 18 million (€16 million) and GCF concessional financing of up to US$ 2 million (€1.8 million). Potential projects supported through this financing could facilitate a reduction in CO2 emissions of around 5,685 tonnes a year.

The GEFF GFS programme in Uzbekistan will build upon the EBRD's GEFF I and GEFF II, which have together established a financing framework of US$ 160 million for green investments since their launch in 2018 and 2023, respectively. GEFF has supported 425 green projects in the country through five participating financial institutions, helping large companies and small and medium-sized enterprises gain access to climate technologies ranging from energy-efficient equipment and electric vehicles to solar photovoltaic systems and industrial decarbonisation solutions. Close to 10 per cent of projects have supported women-led or owned businesses.

GEFF in Uzbekistan has delivered annual energy savings of approximately 1.1 million GJ and helped to reduce annual CO2 emissions by around 53,000 tonnes. It has also supported the creation of more than 14.3 MW of renewable energy capacity and helped to strengthen the green finance capabilities of local financial institutions.

The GEFF GFS programme will work to scale up climate finance and promote the transition of Uzbekistan’s financial sector towards climate-aligned lending and investment practices.

The EBRD has invested almost US$ 6.9 billion (€6.1 billion) in Uzbekistan through 217 projects, with most of the funds supporting private entrepreneurship.