Uzbekistan reduced greenhouse gas emissions and received a payment from the World Bank for it. The country became the first in the world to secure such a grant, Podrobno.uz reports.
As a result of the reforms undertaken, Uzbekistan reduced carbon dioxide emissions by 500,000 tons, enabling it to begin trading part of its quotas on international markets.
The country achieved these results through the "Innovative Carbon Financing for Uzbekistan's Energy Sector Transformation" (iCRAFT) project. These reductions were independently verified by a third party.
"The iCRAFT project aims to assist Uzbekistan in transitioning from individual greenhouse gas emission trading deals on international carbon markets to a systematic approach in this area. We expect that this pilot project can set a precedent for reforms in other sectors of the national economy, as well as serve as an example for implementing similar practices in other countries worldwide," said Marco Mantovanelli, head of the World Bank's office in Uzbekistan, congratulating the country on its achievement.
The first tranche from the World Bank for this achievement was $7.5 million. This grant is allocated for further greenhouse gas emission reductions.
Several tranches are expected under the agreement, with the country potentially receiving up to $20 million in grant funds as "carbon financing" for independently verified emission reductions.
During the iCRAFT project implementation, Uzbekistan plans to reduce emissions by 60 million tons of carbon dioxide, which it will be able to sell on international carbon markets.
The Government of Uzbekistan has committed to using part of the funds received under the project to provide financial assistance to vulnerable households affected by recent electricity and gas tariff changes. Additionally, project funds will contribute to implementing the national program for transitioning Uzbekistan to a "green" economy and reforming the energy sector.
It is known that the South Korean heating center will help Uzbekistan save up to 70% of gas consumption.
CentralasianLIGHT.org
June 21, 2024