TASHKENT, Uzbekistan, November 23. The World Bank has estimated Uzbekistan's green energy export potential at $2 billion, Trend reports.
As per the World Bank's Country Climate and Development Report, Uzbekistan's green transition will be helped by a reduction in the public sector in the economy and a reduction in customs duties. The report said that the private sector plays a key role in Uzbekistan's transition to a green economy.
Moreover, local businesses are more active in green sectors of the economy than in other countries in the region.
WB analysts note that the lack of access to reliable electricity supply is one of the top three problems - along with tax rates and the shadow economy, which negatively affects business activity in Uzbekistan.
The bank also stressed the importance of increasing foreign direct investment for the development of low-carbon industries as Uzbekistan currently lags behind in attracting investment in green areas due to the dominant role of the state in the economy and weak competition.
Meanwhile, Uzbekistan and the World Bank have signed an agreement on the provision of financing in the amount of $46.2 million to reform the country’s energy sector.
The funds are said to be used to implement the project Innovative Carbon Financing for the Transformation of the Energy Sector of Uzbekistan (iCraft), aimed at producing clean energy, improving energy efficiency, and reforming energy subsidies. Being the first project to support reforms in the country’s energy sector, it will help Uzbekistan fulfill its international obligations in the field of climate change and effectively use energy resources.