Financing for Industrial Decarbonization Projects

Industrial enterprises in Uzbekistan may submit projects aimed at reducing greenhouse gas emissions, improving energy and resource efficiency, and modernising production facilities.

Uzbekistan is one of seven countries selected to participate in the Climate Investment Funds’ Industrial Decarbonization Program — CIF (Climate Investment Funds)

Under this program, Uzbekistan may attract up to USD 250 million in concessional financing.

Under this Program, priority is given to the following sectors:

• metallurgy;

• the chemical industry and mineral fertiliser production;

• the production of construction materials and cement;

• the textile industry;

• the food industry.

Projects from other industries with high efficiency indicators and significant emissions-reduction potential may also be accepted.

The interest rate on concessional loans provided by the CIF (Climate Investment Funds)

is 1,01% per annum in US dollars and 0,53% per annum in euros. The financing term may be up to 30 years, including a grace period of up to 10 years.

In accordance with the Program requirements, additional funds are to be attracted from IFIs: the World Bank, the International Finance Corporation, the Asian Development Bank and the European Bank for Reconstruction and Development — at a ratio of at least 1:3 to the funds attracted from the CIF. The terms and interest rates for funds attracted from international financial institutions may differ and are agreed separately.

Projects may be initiated by private companies, SMEs, industrial enterprises, industrial park operators, public organizations and mixed entities.

Projects related to the extraction, transportation or processing of oil, natural gas and coal, as well as solutions that prolong dependence on fossil fuels, are not eligible for financing.

The investment plan is to be agreed by the end of 2026; applications must be submitted before that time.

The HPBS team is ready to provide support in:

• developing an enterprise decarbonization concept;

• attracting financing for decarbonization projects;

• supporting decarbonization projects and compliance with financing requirements.

• establishing an MRV system: monitoring, reporting and verification of results.

The participation of a specific project, financing terms and the procedure for its consideration will be determined within Uzbekistan’s investment plan and the procedures of the relevant international development banks.

For preliminary consideration of an application for CIF financing, the following must be determined:

• the technological solution and the project’s current level of readiness;

• the anticipated amount of capital expenditure;

• expected savings in energy, fuel, heat or water;

• the projected emissions reduction in tCO₂e;

• the project’s impact on operating expenses;

• the need for concessional and additional financing;

• the availability of source data and a results-monitoring system.

Projects will need to demonstrate an internationally recognized approach to CO2 optimization, based on recognized Verra and Gold Standard methodologies.

Complete an application

It is important to plan the decarbonization project and attraction of financing. Actual financing is expected to begin reaching companies around the end of 2027 or beginning of 2028.

• Decarbonization of the cement industry, the CBAM mechanism and financing.

• International green certification of assets