9 December 2019

Transition Of The Republic Of Uzbekistan To A Green Economy



The strategy for the transition of the Republic of Uzbekistan to a green economy in the period of 2019-2030 was approved by the Resolution of the President of the Republic of Uzbekistan
United States Energy and Natural Resources
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The strategy for the transition of the Republic of Uzbekistan to a green economy in the period of 2019-2030 was approved by the Resolution of the President of the Republic of Uzbekistan dated 04.10.2019 No. PP-4477 (hereinafter – the "Resolution"). This Resolution was adopted in order to ensure the fulfillment of obligations under the Paris Agreement on climate change signed by Uzbekistan on April 19, 2017, as well as the implementation of the Action Strategy for five priority areas of development of the Republic of Uzbekistan in 2017-2021.

The Resolution declares that the Strategy should bring the following results by 2030:

  • reduction of emissions of greenhouse gas per unit of GDP by 10 per cent of the 2010 level;
  • a twofold increase of energy efficiency indicators and a decrease in the carbon intensity of GDP;
  • further development of renewable energy sources, with coverage of more than 25 per cent of the total volume of electricity generation;
  • increase of the energy efficiency of industrial enterprises by at least 20 per cent;
  • development of electrical vehicles;
  • introduction of drip irrigation technology into an area up to 1 mln. hectares and increasing the crops yield cultivated on them by 20-40 per cent;
  • achieving a neutral balance in the degradation of land;
  • increasing the average productivity of the production of the main types of agricultural food products by 20-25 per cent.

Moreover, it has approved the priority areas in Uzbekistan's strategy for transition to a green economy:

  • improvement of energy efficiency in the basic sectors of the economy;
  • diversification of energy consumption and development of the use of renewable energy sources;
  • adaptation and mitigation of the effects of climate change, increase in the efficiency of natural resources and preservation of natural ecosystems;
  • development of financial and non-financial support mechanisms for the green economy.

Priority areas envisage the implementation of measures in various sectors of economy, including electricity, heat, oil and gas, renewable energy, construction, transportation and many more.

The development of renewable energy sources implies the implementation of measures for the formation of modern and transparent methods for competitive selection of potential investors by introducing auction trading, as well as the localization of equipment production for energy generation from renewable energy sources.

In the oil and gas industry it is envisaged that losses of natural gas should be reduced in the extraction, processing, transportation and distribution of gas through the modernization of compressor stations the low and medium pressure gas distribution networks and the gas transmission system through the introduction of effective technologies for the control of hydrocarbon resource losses (SCADA).

The Resolution also notes that the main objectives of Uzbekistan's transition to a green economy include the improvement of the energy efficiency of the economy and the rational consumption of natural resources, inclusion of green criteria in priority areas of public investment and expenditures, as well as assistance in the implementation of pilot projects in the areas of transition to a green economy.

It should be noted, that the earlier Resolution of the President No. 4422 dated August 22, 2019, determined the target parameters of the ongoing reforms in the area of renewable energy. In particular, it was predicted that the share of renewable energy sources in total energy generation will reach at least 25 per cent by 2030. Moreover, it defined the measures for the improvement of the energy efficiency of economic sectors and the development of renewable energy sources.

The Resolution provides for attracting foreign investment, loans and grants from international financial institutions, foreign governmental financial organizations and other foreign grantors.

The Ministry of Economy and Industry of the Republic of Uzbekistan is named as the authorized body for the promotion and implementation of the green economy in Uzbekistan, while the organization of work on the implementation of the Strategy is entrusted to a special interdepartmental commission.

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