On November 27, Tashkent hosted a seminar dedicated to the launch of the investment project for the green rehabilitation of the Republic of Karakalpakstan to overcome the consequences of the Aral Sea crisis (Aral Sea GRIP), implemented jointly with the Global Green Growth Institute (GGGI) with funding from the Korean International Cooperation Agency (KOICA).
The project is an innovative model that effectively transforms traditional technical assistance with official development assistance(ODA) into tangible mobilization of green investments, as evidenced by the issuance of sustainable/green bonds worth 1 billion USD by partner banks on the London Stock Exchange. GRIP, by channeling large-scale international funding to climate and green projects in Uzbekistan, is expected to accelerate the transition to a green economy and expand green impact in Uzbekistan.
“Today we are gathered here to learn about the achievements of the KOICA-based project working group, in which we have mobilized $1 billion in investments for Uzbekistan. In particular, this project is aimed at promoting climate-sustainable and economically efficient agriculture. It is directly related to the initiative of the President of Uzbekistan to declare next year the year of environmental protection and the green economy”, said Aaron Russell, representative of GGGI in Uzbekistan.
The Aral Sea GRIP project is aimed at supporting communities most affected by natural disasters in the regions of the Republic of Karakalpakstan. Bozatau, Cimbai, Karauizak, and Kegeyli districts will promote climate-optimized agriculture (CSA), stimulate green investments, and enhance environmental sustainability.
In order to achieve these goals, the project supports financial institutions in improving their understanding of green finance and the implementation of environmental, social, and governance (ESG) principles. This includes working closely with SQB and Agrobank banks to develop global standards for sustainable and green finance, which will serve as a guide for banks to incorporate green and sustainable factors into their financing, refinancing, and investment processes.
“At the moment, our farmers are very interested and are implementing green technologies in Karakalpakstan. In addition, together with our partners and GGGI, we conducted several field seminars and trainings for farmers, and they were able to see the advantages of these technologies on the spot in the field”, says Mels Kosnazarov, Deputy Head of the Karakalpak Republican Department of the Chamber of Commerce and Industry of the Republic of Uzbekistan.
With the technical support of GGGI, two thematic bonds were issued, which made it possible to mobilize more than $1 billion for sustainable and green initiatives in Uzbekistan. In addition, a climate-sensitive agriculture financing fund will be created for SQB. To do this, GGGI, in collaboration with the Ministry of Agriculture, has developed a process for the comprehensive review of new projects and the creation of a portfolio of investment and grant projects.
