Transition of Uzbekistan to a Green Economy and Sustainable Development

The modern stage of Uzbekistan’s economic development is characterized by an effort to integrate the principles of sustainable growth and environmental responsibility into the national development strategy. Considering the challenges of global climate change, the country follows a consistent course toward reducing carbon dependency, improving energy efficiency, and developing green technologies.

The transition to a green economy is regarded as a systemic priority of the “Uzbekistan — 2030” Strategy, encompassing the energy sector, industry, agriculture, transport, and public administration. In 2025 — declared the Year of Environmental Protection and the Green Economy — institutional mechanisms for long-term ecological development were established.

1. State Policy and Institutional Foundations of the Green Economy

1.1. Strategy for Transition to a Green Economy (2019–2030)

By the Presidential Decree of the Republic of Uzbekistan dated October 4, 2019, the National Strategy for Transition to a Green Economy for 2019–2030 was approved, providing for:

• a 35% reduction of greenhouse gas emissions by 2030 compared to 2010 levels;
• an increase in the share of renewable energy sources (RES) in the energy balance up to 30%;
• implementation of resource-saving technologies and reduction of GDP energy intensity;
• the formation of a green investment market and the development of environmental auditing.

1.2. National Green Taxonomy (2023)

In 2023, Uzbekistan adopted its National Green Taxonomy, defining the classification of environmentally sustainable economic activities. The taxonomy aims to:

• enhance transparency and efficiency in allocating investment flows;
• support green projects in energy, agriculture, industry, and water resources;
• create a foundation for issuing green bonds and ESG-based investments.

This system became a tool for integrating sustainable finance principles into national economic policy.

2. Energy Transformation as the Core of the Green Transition

2.1. Development of Renewable Energy Sources

The energy sector is the central focus of green reforms. By 2024, the total installed capacity of power plants reached 21.4 GW, including 10% hydropower, 9% solar, and 1% wind. By 2030, the total RES capacity is expected to reach 20–25 GW, ensuring one-third of national energy production.

Major projects include:

• Masdar (UAE): Solar power plants in Karmana, Gallaorol, Kattakurgan, and Sherabad (total capacity — 1,497 MW);
• ACWA Power (Saudi Arabia): Wind and solar power stations totaling over USD 15 billion;
• TotalEnergies (France): Low-carbon energy production and infrastructure modernization projects.

2.2. Hydropower and Energy Efficiency

Uzbekistan is actively developing hydropower: 56 operating HPPs provide 2.6 GW of capacity, and new projects will add another 1.4 GW. Modernization of power grids and the introduction of smart management systems will reduce network losses and increase supply reliability.

3. International Cooperation and Green Financing

Uzbekistan actively integrates ESG (Environmental, Social, Governance) principles into public administration and corporate governance.

Key partners include:

• The World Bank, EBRD, and ADB — providing concessional loans for environmental projects;
• UNDP and UNEP — assisting in the development of climate financing mechanisms;
• TAQA and Mubadala (UAE) — investing in power plant modernization and water-saving technologies.

The development of the green bond market has become one of the main tasks of the National Bank of Uzbekistan and the Ministry of Finance, aimed at mobilizing private investments in sustainable infrastructure.

4. Environmental Modernization and Social Impact

4.1. Sustainable Development Goals (SDGs)

Uzbekistan has adapted 16 national SDGs, including:

• rational use of natural resources;
• access to clean energy;
• development of smart transport and green cities;
• improvement of air and water quality, and waste management.

4.2. Social and Economic Benefits

The transition to a green economy contributes to:

• creation of new jobs (up to 500,000 by 2030 in RES, recycling, and eco-services);
• improvement of public health due to pollution reduction;
• enhancement of the country’s investment attractiveness.

5. National Program 2025: “Year of Environmental Protection and Green Economy”

The declaration of 2025 as the Year of Environmental Protection and the Green Economy reaffirmed the political commitment to sustainable transformation.

Key priorities of the program include:

• scaling up green financing;
• forming a long-term decarbonization strategy;
• developing circular economy and eco-production models;
• establishing a national climate monitoring system.

Uzbekistan’s transition to a green economy reflects a strategic choice in favor of sustainable, innovative, and socially responsible growth. Institutional reforms, RES development, green financing, and international cooperation are forming a low-carbon growth model ensuring energy security and economic competitiveness.

Uzbekistan is becoming a regional leader in green transformation, demonstrating that environmental sustainability can serve as a driving force for economic growth and social stability.

Key Indicators of Uzbekistan’s Green Economy

№	Indicator	Unit	2020	2024	Target 2030	Source / Comment
1	Total installed capacity of power plants	GW	17.5	21.4	30.0	Ministry of Energy
2	Share of RES in the energy mix	%	5	10	30	National “Green Economy” Strategy
3	Solar power capacity	GW	0.5	3.3	10	Masdar, ACWA Power
4	Wind power capacity	GW	0.1	1.5	12.5	ACWA Power projects
5	Hydropower capacity	GW	2.0	2.6	4.0	Ministry of Energy
6	GDP energy intensity reduction vs. 2010	%	−15	−25	−35	Ministry of Economy
7	CO₂ emissions	million tons	205	190	≤150	Ministry of Ecology
8	Reduction of greenhouse gases vs. 2010	%	−10	−20	−35	National SDG Report
9	Investments in green projects	USD billion	2.5	11.0	≥25	EBRD, World Bank
10	Private investment in RES	USD billion	0.6	8.0	20.0	ACWA, Masdar
11	Number of green jobs	thousand	120	320	500	“Green Economy 2030” Program
12	Green bond issuance	bln UZS / year	—	1,200	4,000	Ministry of Finance
13	Recycled waste share	%	25	35	60	State Committee for Ecology
14	Electricity network losses	%	16	11	7	UzEnergo
15	Energy access level of population	%	92	98	100	Ministry of Energy

Analytical Summary

Energy: By 2030, Uzbekistan plans to triple the share of RES in its energy mix to 30%, mainly through solar (10 GW) and wind (12.5 GW) power stations.

Emissions: Modernization and efficiency measures will reduce CO₂ emissions by 35% relative to 2010.

Investments: Total green economy investments are projected to reach at least USD 25 billion, with up to 80% coming from private and foreign investors.

Major Green Energy Projects in Uzbekistan (2020–2030)

№	Company / Investor	Project Type	Region	Capacity (MW)	Investment (USD million)	Status (2025)	Comment / Effect
1	Masdar (UAE)	Solar power plants	Navoi, Samarkand, Kashkadarya, Surkhandarya	1,497	1,100	Completed / Commissioned	First wave of RES projects; CO₂ reduction by 1.2 mln tons/year
2	ACWA Power (Saudi Arabia)	Solar & wind power plants	Karakalpakstan, Bukhara, Khorezm, Navoi	5,000	15,000	Under construction (2025–2027)	Largest RES portfolio in Central Asia
3	TotalEnergies (France)	Wind energy	Karakalpakstan	1,000	1,200	Commissioning in 2026	Participation in decarbonization program
4	Mubadala (UAE)	Modernization of Talimarjan TPP	Kashkadarya	900	1,000	Implementation / 2025	Emission reduction; efficiency up to 58%
5	TAQA (UAE)	RES & distributed generation	Tashkent, Fergana	500	600	Implementation (2025–2028)	Development of local grids and energy savings
6	EBRD / ADB / World Bank	Green finance & ESG support	Nationwide	—	2,500	Active programs	Financing green bonds and efficiency projects
7	Uzbekhydroenergy (state company)	Hydropower	Tashkent, Namangan, Surkhandarya	1,400	850	Construction (2024–2029)	Expansion of small HPP capacity
8	Masdar + ACWA (consortium)	Wind parks	Karakalpakstan	1,500	1,500	Implementation (2026–2028)	Joint project in the Aral Sea region
9	TotalEnergies + UzNIF	Hybrid (wind + solar) stations	Bukhara	600	750	Design (2025–2027)	Pilot mixed-RES project
10	UzEnergo + Siemens Energy	Grid modernization	Tashkent, Jizzakh	—	400	Implementation (2024–2026)	Smart substations; loss reduction to 7%

Summary Results

Indicator	Aggregate Value
Total RES capacity (solar + wind + hydro)	~12,800 MW
Total green energy investment (2020–2030)	~USD 24.4 billion
Share of foreign investment	≈ 80%
Average CO₂ emission reduction	up to 7.5 million tons per year by 2030
New jobs (temporary / permanent)	20,000 / 3,500

Analytical Conclusion

Key trend: Transition from state-financed to public-private partnership (PPP) models in green energy.

Leaders: ACWA Power and Masdar account for more than 60% of all RES projects.

Regional impact: Formation of energy clusters in Navoi, Karakalpakstan, and Samarkand regions.

Institutional result: Establishment of the National Green Taxonomy (2023) and the green bond market, strengthening Uzbekistan’s position as a regional hub for green investment.