Uzbekistan is the first country to receive $7.5 million in carbon credits from the World Bank for reducing greenhouse gas emissions in the energy sector. The Republic is taking an active part in the Innovative Carbon Resource Application for Energy Transition Project (iCRAFT), the press office of the World Bank in Uzbekistan reported.
This grant was allocated by the World Bank’s Transformative Carbon Asset Facility (TCAF) for enabling 500,000 tons of CO2 emissions reduction. The funds will be used to protect vulnerable households and support economic growth in the country.
This finance transaction is just the first step under the iCRAFT project. Subsequently, Uzbekistan could receive up to $20 million in grants for emission reductions. The authorities undertook to reduce emissions of around 60 million metric tons of CO2 over the project lifetime.
Minister of Energy of Uzbekistan Zhurabek Mirzamakhmudov emphasised that the participation in the project will foster the transition of Uzbekistan’s economy to eco-friendly energy. This initiative will enable Uzbekistan to enhance its role as a regional leader through active participation in international carbon markets.
