Uzbekistan : Preparing the Accelerating the Climate Transition for Green, Inclusive, and Resilient Economic Growth

Project Name

Preparing the Accelerating the Climate Transition for Green, Inclusive, and Resilient Economic Growth

Project Number

58125-002

Country / Economy

• Uzbekistan

Project Status

Active

Project Type / Modality of Assistance

• Technical Assistance

Source of Funding / Amount

TA 10310-UZB: Preparing the Accelerating the Climate Transition for Green, Inclusive and Resilient Economic Growth

Source	Amount
Technical Assistance Special Fund	US$ 1.10 million

Operational Priorities

• OP1: Addressing remaining poverty and reducing inequalities
• OP2: Accelerating progress in gender equality
• OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
• OP4: Making cities more livable
• OP5: Promoting rural development and food security
• OP6: Strengthening governance and institutional capacity
• OP7: Fostering regional cooperation and integration

Sector / Subsector

• Public sector management / Public administration - Public expenditure and fiscal management - Social protection initiatives

Gender

Effective gender mainstreaming

Description

The expected impact of the TA project will contribute to achieving resilient, inclusive, and low-carbon economic growth. The expected outcome is investment in climate change adaptation, mitigation, with the just transition accelerated and sustained through the following reform areas: (i) a coherent and effective institutional setup; (ii) climate change adaptation strengthened in water resource management, sustainable irrigation, and land restoration; and (iii) climate change mitigation strengthened though an enabling regulatory environment and carbon market to incentivize lower carbon emissions. The TA project has three major outputs.

Output 1: Enabling environment and institutional setup for implementation of climate change actions created. The TA will support diagnostic assessments and analytical studies to (i) strengthen the institutional responsibility and coordination for climate change policy, strategy and climate change gender action plan; (ii) integrate climate and gender priorities across strategic planning and public financial frameworks; and (iii) support the transition to a green economy through the development of green skills and jobs review including workforce training programs.

Output 2: Climate change adaptation priorities strengthened. The TA will support diagnostic assessments and analytical studies to (i) strengthen climate change adaptation priorities by enhancing water resource management through supporting regulatory and system reforms; (ii) promoting sustainable soil management practices, increasing agriculture productivity, and mitigating the impact of livestock on pastures; and (iii) supporting subsidy reform for a productive and climate-resilient agricultural sector. Additionally, the TA will support the establishment of an adaptive social protection system to bolster resilience to climate change and extend coverage of social protection measures to vulnerable populations.

Output 3: Climate change mitigation actions accelerated. The TA will support diagnostic assessments and analytical studies to accelerate climate change mitigation actions and reduce carbon emissions in line with the NDC focusing on (i) facilitating green finance for state-owned enterprises (SOEs) through the adoption of sustainability standards and climate-related disclosures; (ii) promoting e-mobility in public transport to reduce greenhouse gas emissions; and (iii) greening the tax system to incentivize sustainable practices and renewable energy production. Additionally, the TA will support the long-term decarbonization strategy, establishment of a carbon tax framework and national carbon credit registry and support regulatory reforms to enhance energy conservation, efficiency, and reduce greenhouse gas emissions in alignment with the country's low-carbon transition goals.

This TA project will strengthen the capacity of implementing agencies to design and implement key reforms across the program areas. For instance, capacity development in public financial management will inform the integration of climate priorities into the strategic planning, fiscal, budgeting, and investment frameworks. As of 2023, the Asia Pacific Tax Hub is supporting tax policy reforms through assessments, training, and other capacity development activities. The project team is exploring additional exploring additional TA grant financing from the Domestic Resource Mobilization Trust Fund to support the government on tax policy, specifically related to green taxation and carbon tax reforms.

Project Rationale and Linkage to Country/Regional Strategy

The government requested TA to help implement complex reforms on climate change adaptation, mitigation, and the just transition, as well as building institutional capacity for reform-related policies that provide the basis for the program. ADB consultation missions in February 2024 and March 2024 led to an agreement with the government on the TA's scope and coverage, including the results framework, implementation arrangements, and cost estimates. The government is coordinating across development partners, including the Agence Frannaise de Developpement, ADB, the European Union, International Monetary Fund, and the World Bank Group, to align support in key reform areas. The TA grant of $1.1 million will support (i) the design and implementation of detailed policy actions under the ensuing program; (ii) development of capacity in the executing and implementing agencies; and (iii) policy dialogue with the government to improve awareness and understanding of international standards, best practices, and lessons.

Impact

Project Outcome

Description of Outcome

Progress Toward Outcome

Implementation Progress

Description of Project Outputs

Status of Implementation Progress (Outputs, Activities, and Issues)

Geographical Location

Nation-wide

Summary of Environmental and Social Aspects

Environmental Aspects

Involuntary Resettlement

Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design

During Project Implementation

Contact

Responsible ADB Officer

Rahemtulla, Hanif A.

Responsible ADB Department

Sectors Group

Responsible ADB Division

Public Sector Management and Governance Sector Office (SG-PSMG)

Executing Agencies

Ministry of Economy and Finance

Timetable

Concept Clearance

-

Fact Finding

-

MRM

-

Approval

19 Jun 2024

Last Review Mission

-

Last PDS Update

26 Jun 2024

Funding

TA 10310-UZB