The Cabinet of Ministers of the Republic of Uzbekistan issued Resolution No. 117 on March 7, 2024, approving the temporary regulation on projects related to greenhouse gas trading. Below, we invite you to review the main key provisions of this Regulation.
1. Responsible parties
Executive body — the Ministry of Economy and Finance of the Republic of Uzbekistan.
In accordance with Resolution No. PQ-436 of the President of the Republic of Uzbekistan dated December 2, 2022, the Ministry of Economy and Finance was designated as the Executive Body responsible for:
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regulation,
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implementation,
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coordination,
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management of greenhouse gas trading at the international and national levels,
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monitoring and reporting as part of the implementation of these projects.
From March 10, 2024: all projects involving greenhouse gas reductions and the generation of carbon units must be coordinated with the Ministry of Economy and Finance of the Republic of Uzbekistan.
The Ministry of Economy and Finance of the Republic of Uzbekistan must:
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coordinate the timely review and implementation of proposals for voluntary carbon market projects, as well as the sale of verified carbon units and the allocation of revenue to the state budget;
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provide the Administration of the President of the Republic of Uzbekistan with monthly analytical information on attracting investment projects to the voluntary carbon market and on their effectiveness.
The Ministry of Energy, in cooperation with interested ministries and agencies
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organize the registration of carbon units under international standards based on projects implemented in the energy sector, including public-private partnership projects involving foreign investors,
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ensure the effective exchange of the necessary financial and technical data with the national authority.
Government of the Republic of Uzbekistan
From March 10, 2024: control over the volume of greenhouse gas reductions resulting from projects implemented in partnership with foreign and local investors, under public-private partnerships, or in other forms.
2. Main participants
3. Project areas
Renewable energy projects: supplying national or regional grids with energy from renewable sources such as:
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solar energy,
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wind energy,
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hydropower,
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waste and biomass,
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as well as expanding renewable energy sources connected to small grids or operating off-grid.
Forest restoration projects:
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tree planting,
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sustainable tree cultivation,
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improvement and expansion of all forest systems, agroforestry, or pastures.
Water, sanitation, hygiene, and green buildings:
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projects aimed at climate change mitigation and/or adaptation.
Energy-efficiency projects:
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introduction of technologies and solutions that reduce energy consumption without compromising the volume or quality of services or products.
Green and low-carbon industry development projects:
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reducing resource consumption and greenhouse gas emissions in industry,
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introducing innovative low-waste technologies,
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attracting effective green investment.
Waste management and recycling:
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introducing sustainable practices for producing energy or useful products (composting, biogas, and others) in waste management.
4. Project categories
First category:
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All investment projects implemented in the territory of the Republic of Uzbekistan
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Aimed at reducing greenhouse gas emissions and generating verified carbon units
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Implemented in accordance with Section 4 of the Regulation
Second category:
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Projects implemented under public-private partnerships or with the participation of government organizations and enterprises (as customers)
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Aimed at generating verified carbon units based on reductions in greenhouse gas emissions
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Implemented in accordance with Section 5 of the Regulation
5. Key methodological elements of climate projects
Climate project methodologies
Section 3. Methodology for the development, implementation, and monitoring of voluntary carbon market projects lists the following international climate project systems permitted for use:
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“Gold Standard”
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“Verra’s Verified Carbon Standard”
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“Clean Development Mechanism”
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The ISO 14064 family of standards — guidance on quantifying, monitoring, and reporting reductions in (or removals of) greenhouse gas emissions
The list of methodologies is regularly updated by the national authority.
Preventing double counting of carbon units
To prevent double counting of carbon units, voluntary carbon market projects may not be registered in more than one national, international, or independent carbon-unit system (Clause 3, Section 1, General Provisions)
6. Requirements for voluntary carbon market projects
Section 1, Clause 7, limits on the volume of verified units issued by a project:
A project may generate verified emission units in an amount not exceeding 1% of the country’s annual greenhouse gas emissions for the latest year specified in the biennial update report under the nationally determined contributions (NDC).
Section 2, Clause 8, reserve carbon units
The national authority reserves 1% of the volume of verified carbon units to reduce overselling risk under the Paris Agreement. The national authority annually publishes information on the use of the total reserve units.
Section 2, Clause 9, accounting for verified carbon units for national purposes:
Verified carbon units generated by projects are not transferred or used as internationally transferred mitigation outcomes (ITMO) for the nationally determined contributions (NDC) of other countries.
7. Framework for the development, approval, implementation, and monitoring of voluntary carbon market projects
(Appendix 1 to the Temporary Regulation on the Implementation of International Greenhouse Gas Trading Projects)
8. Next stages in carbon market development under this Regulation
Ministry of Economy and Finance of the Republic of Uzbekistan
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in cooperation with the Ministry of Digital Technologies, digitize the system for reviewing, approving, and monitoring proposals for voluntary carbon market projects and enable each stage of these projects to be tracked
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by October 1, 2024: in cooperation with the Ministry of Ecology, Environmental Protection and Climate Change, develop a program for introducing international carbon markets and non-market mechanisms in the Republic of Uzbekistan, including cooperative approaches and sustainable-development mechanisms in accordance with Articles 2 and 4 of the Paris Agreement
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establish and maintain the National Carbon Unit Registry to account for reduced greenhouse gas emissions and the generation of verified carbon units
If you have any questions, you can email us at info@hpbs.uz or call +998 90-826-71-83
Article author: Marina Kupriyanova