How Can Businesses in Uzbekistan Profit from Reduction of Carbon Emissions
Enterprises in Uzbekistan now have access to a new investment instrument that enables them to modernise production through foreign financing while settling obligations with carbon credits. This mechanism was made possible by the recently adopted law on greenhouse gas emission limits and a presidential decree on participation in the international carbon credit market, according to Shokhzod Islamov, head of the Green Economy Development Department at the Ministry of Economy and Finance, speaking to Kursiv Uzbekistan.
He described the system as offering businesses «a real path to modernisation without credit burdens». The principle is straightforward: when a company reduces resource consumption and emissions, the difference is converted into carbon credits. These credits can be transferred to investors in exchange for money or technology.
«For example, a brick manufacturer previously produced 100 bricks a day using 100 cubic metres of gas. After modernisation, they can make the same number with just 50 cubic metres. The reduction is recorded and converted into carbon credits, which become the ‘currency’ for investors,» Islamov explained.
International Context
Uzbekistan is a signatory to the Paris Climate Agreement, ratified in 2018. Under its framework, each country pledges to reduce greenhouse gas emissions. Developed countries that have already reached the limits of domestic modernisation can invest in projects abroad, receiving carbon credits in return.
«A German company, for instance, could finance the upgrade of a factory in Uzbekistan, with the resulting carbon credits counted towards Germany’s climate commitments. This creates mutual benefit: Uzbek businesses secure investment and new technologies while investors gain a tool to meet their obligations,» Islamov noted.
Benefits for Companies
The approach is particularly significant for enterprises still reliant on outdated technologies and unable to afford costly loans. Instead of taking on high-interest credit, they can attract investment based on future reductions in emissions and resource use.
«The law does not impose obligations on companies but rather opens opportunities. Reduced emissions will be shared between the state and enterprises, allowing businesses to access resources for growth,» Islamov emphasised.
Uzbekistan’s new law on greenhouse gas emissions will come into effect on 9 January 2026, with Article 18, Part 5 of the document entering into force at the start of 2027.
