Uzbekistan holds a leading position in Central Asia in shaping the country’s international sustainable-development agenda, thereby helping to attract capital from international financial institutions and private investment.
Uzbekistan is moving from the stage of attracting investment to the stage of institutionalising investment. This reflects not only a clear intention and determination to attract capital (investment) for development, but also a level of discipline, ethical principles, systematisation, order and acceptance of standards. It is a transition from achieving quick results to pursuing a deferred objective. The greater the flow of capital, the more important its allocation, orderliness and transparent management become.
As a result, Uzbekistan is:
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paying attention to global issues and partnerships
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establishing an International Financial Centre that uses an international dispute-resolution mechanism
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developing IT technologies
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developing education and professional training
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developing and regulating the carbon-unit market
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scaling up decarbonization projects for various sectors of the economy
Let us consider the “Real Estate” sector
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construction projects take into account the requirements of international development-finance institutions regarding energy-efficient technologies, as confirmed by international green certification. In Central Asia, green standards are becoming not a matter of reputation, but an infrastructure for access to capital. They help to measure outcomes, compare assets, reduce information risks and provide investors with clear KPIs.
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the introduction of renewable-energy, energy-distribution and heat-distribution technologies to reduce resource consumption and OPEX.
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energy efficiency and energy audits in accordance with national standards
Indicators for reducing greenhouse gas (CO₂) emissions from real estate
When decarbonising new construction projects, we obtain the following average CO₂ reduction indicators, which may produce the following figures when carbon units are issued:
|
Price of 1 t CO₂, $ |
New construction |
Existing buildings |
||||
|
Property area |
up to 5,000 m² |
up to 50,000 m² |
over 50,000 m² |
up to 5,000 m² |
up to 50,000 m² |
over 50,000 m² |
|
Approximate reduction |
~ 500 |
~ 1 700 |
~ 7 700 |
~ 150 |
~ 350 |
~ 1 000 |
|
|
|
|
|
|
|
|
|
Revenue from the sale of carbon units: at 1 t CO₂ = $20 |
10 000 |
34 000 |
154 000 |
3 000 |
7 000 |
20 000 |
|
Revenue from the sale of carbon units: at 1 t CO₂ = $75 |
37 500 |
127 500 |
577 500 |
11 250 |
26 250 |
75 000 |
We do not merely talk about the green economy; we show what happens when international rules are applied to a real asset in Central Asia.
Examples of completed properties in Uzbekistan
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Existing offices of SQB Uzpromstroybank (39 offices; area of 1 property: up to 5,000 m²): a potential average of $117,000 worth of carbon units per year is generated through reductions in CO₂ emissions.
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The new Korzinka logistics center (area: 48,000 m²): a potential average of $32,720 worth of carbon units per year is generated through reductions in CO₂ emissions.
Chinese capital, technologies and developments are in demand in the Uzbek market because of low interest rates and a high degree of flexibility, which help take into account and implement the requirements of international standards and global financing.
China has already created an enormous number of green technologies.
The next opportunity is not simply to export equipment, but to create integrated projects using an integrated approach, thereby producing a logical long-term effect and competitiveness under modern rules for managing capital and assets globally.
Technologies + properties + financing + integration with cultural characteristics + international standards + CO₂ measurement + verification + investment outcome.
China is currently a source of technology and capital,
Central Asia is a new market and a space for scaling and piloting technologies,
and international standards are the common language between them.
When directing investment into Uzbek projects, it should be borne in mind that the market is growing rapidly in urban development, housing, industrial facilities, logistics and energy infrastructure. Many assets are being created now rather than modernised.
However, three questions remain key for investors:
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Where is the money?
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Where is the risk?
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Who helps reduce this risk?
Today, the global green economy is not developing as a single system. There is a Chinese industrial and technological system, a European regulatory system, international financial standards and the national markets of developing countries. The task for the coming years is to ensure data comparability, comparability in CO₂ emissions accounting, mutual recognition and crediting, and clear criteria for green investment.