Tashkent, Uzbekistan, April 16, 2024 – Global Green Growth Institute (GGGI) Uzbekistan and Sanoat Qurilish Bank (SQB), under the leadership of Dr. Frank Rijsberman, GGGI Director-General, and Mr. Farruh Abdurahmanov, the SQB Deputy CEO, signed a Memorandum of Understanding “On cooperation in the field of green investment.“ The MoU provides a general framework for cooperation and facilitates collaboration between the Parties in support of the 2030 Agenda for Sustainable Development and the Paris Climate Agreement. SQB is a leading financial driver in Uzbekistan, actively contributing to the development of a sustainable economy, thus, it poses as a great partner for supporting green growth.
GGGI will support SQB in establishing a Climate Smart Agriculture (CSA) Financing Facility for the Karakalpakstan Republic under the ‘Green Rehabilitation Investment Project for Karakalpakstan Republic to address impacts of the Aral Sea crisis’ (Aral Sea GRIP),’ funded by KOICA. This will involve supporting farmers and micro-, small-, and medium-sized enterprises (MSMEs) to access sustainable agriculture loans. Additionally, GGGI will collaborate to facilitate the issuance of a green bond during the period of 2024-2025.
At the signing ceremony, Mr. Farruh Abdurahmonov emphasized the bank’s dedication to supporting Karakalpakstan and enhancing access to sustainable finance. “The purpose of the memorandum is important in that it is aimed at reducing the threats associated with global climate change and their consequences. This is inextricably linked with the green policy promoted by our Bank and the activities of GGGI. The funds developed in cooperation with the organization will improve environmental conditions and, at the same time, the lifestyle of the population of Karakalpakstan, in particular, increase the volume of cultivation and processing of agricultural products and create new jobs,” Mr. Abdurahmonov outlined.
Dr. Frank Rijsberman, emphasized the significance of GGGI’s collaboration with the bank to encourage sustainable finance, specifically for climate-smart agriculture practices. He also expressed his positive outlook towards the advancement of the facility and bond framework and reiterated the Institute’s dedication towards promoting green growth among its members, including Uzbekistan. “GGGI will support SQB in the development of sustainable finance activities with the establishment of the Green financing facility and the second party’s opinion on the sustainable bond framework,” Dr. Rijsberman stated.
This cooperation between SQB and GGGI is expected to benefit farmers and MSMEs who adopt climate-smart agriculture technologies and business models developed under the project.
Background:
The desiccation of the Aral Sea basin and its delta have resulted in the loss of agricultural potential, livelihoods and employment and have led to health challenges. These problems are expected to worsen due to the impacts of climate change. To effectively address these issues, GGGI is implementing ‘Green Rehabilitation Investment Project for Karakalpakstan Republic to address impacts of the Aral Sea crisis’ (Aral Sea GRIP)’ for three years (2021 to 2024), financed by KOICA (5.9 Million USD) and supported by the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan (MEEPCC). The project supports communities of the four most disaster-afflicted districts of Karakalpakstan, Bozataw, Chimbay, Karauyzak and Kegeyli, with climate-smart measures to build sustainable livelihoods.
Find updates on the Aral Sea GRIP project: https://ggkp.org/aralseagrip
Read more about GGGI: https://gggi.org/