On 12 November 2025, in Tashkent, GIZ and GGGI held a launching event for the new regional project, “Bridging the gaps of climate finance in Central Asia”, focused on unlocking green investment opportunities in Uzbekistan and Kyrgyzstan by accelerating the green transition of their financial sectors.
The event brought together the representatives of the Embassy of United Kingdom in Uzbekistan and the Embassy of the Federal Republic of Germany in Uzbekistan, as well as national partners and officials from ministries of Uzbekistan and Kyrgyzstan responsible for environmental protection, agriculture, finance and economic development.
The Regional Development Director of FCDO Central Asia, Ms. Sarah Cooper, and Deputy Head of Mission of the Embassy of the Federal Republic of Germany, Mr. Clemens Schwanhold, both provided their welcoming remarks as they opened the event wishing for the successful project implementation.
“The UK is delighted to partner with the Governments of Uzbekistan, Kyrgyzstan, GIZ and GGGI on this important initiative under the UK’s climate programme. Raising climate finance for adaptation, resilience building and anticipatory action enables countries to mitigate climate risks and safeguard livelihoods. The UK is proud to be partnering on this initiative which will support sustainable growth and development across the region”, noted Ms. Cooper.
“Germany wants to act as a strategic, engaged and responsible partner in climate finance. I am glad to see that with this project our partnership does not only benefit Uzbekistan but goes beyond borders. With bold ambitions, the outcomes can become scalable models for replication in other Central Asian countries as well”, emphasized Mr. Schwanhold.
The GIZ and GGGI representatives proceeded with the introduction of the Small Grants and Climate Innovation Facility (SGCIF) and the “Bridging the gaps of climate finance in Central Asia” project. The project aims to address key barriers that prevent climate-friendly investments from expanding in Uzbekistan and Kyrgyzstan. The project will be executed in close partnership with key ministries, including Ministry of Economy and Finance of the Republic of Uzbekistan, the Ministry of Economy and Commerce of the Kyrgyz Republic and many other relevant stakeholders.
The project will analyze the existing climate finance landscape in both nations. This involves the assessment of both the demand for green finance, such as sustainable loans, and the supply side, including the financial products and capacities currently available. By identifying the specific gaps and barriers faced by farmers, businesses, and financial institutions, the project will provide targeted recommendations to address these issues, making it easier for stakeholders to access climate finance.
The project is implemented by the Global Green Growth Institute (GGGI) under the Small Grants and Climate Innovation Facility (SGCIF), which is funded by UK International Development. SGCIF is a part of the regional programme “Climate Risk Management in Central Asia”, implemented by GIZ on behalf of the German Government.
The project will also create green finance frameworks for at least two commercial banks in each country, aiming to mobilize a minimum of $50 million in sustainable finance.
GGGI has previously supported Agrobank and Sanoat Qurilish Bank (SQB) in developing the financing frameworks and secured Second-Party Opinions from Sustainable Fitch, resulting in $1 Billion mobilized in sustainable and green bonds in 2024. These bonds are now financing a range of climate-smart, ecological, and social initiatives and projects.
“Supporting initiatives in climate finance and increasing public awareness of green policies are among Uzbekistan’s key priorities in advancing a sustainable and low-carbon economy. The experience of local banks issuing green bonds has already demonstrated positive results, and expanding such practices across the financial sector is essential. Together with international partners, we are also developing long-term strategies for carbon neutrality, green taxonomy, and mechanisms for attracting climate finance to promote energy efficiency, decarbonization, and modernization in key sectors of the economy,” concluded Mr. Shoxzod Islamov, Head of Green Economy Development Department, Ministry of economy and finance of the Republic of Uzbekistan.
All in all, “Bridging the gaps of climate finance in Central Asia” is a promising project, which will enhance green investment opportunities in the Republic of Uzbekistan and the Kyrgyz Republic, ensuring sustainable and green economic growth in both countries.
