Tashkent, Uzbekistan, November 27, 2024 — Korea International Cooperation Agency (KOICA) hosted a high-level event dedicated to leveraging sustainable finance to upscale green impact in Uzbekistan. The event celebrated the achievement of $1 billion mobilized in green and sustainable bonds under the KOICA-funded Aral Sea GRIP project, implemented by Global Green Growth Institute (GGGI). 

Access to green finance is imperative for accelerating the green transition, as the projected investment needed for climate change adaptation and mitigation is tremendous. The KOICA–funded ‘Green Rehabilitation Investment Project for Karakalpakstan Republic to address impacts of the Aral Sea Crisis (Aral Sea GRIP)’ demonstrates how traditional technical assistance with Official development assistance (ODA) can unlock the private investment to bring tangible green investment mobilization. This event aimed to share the support and achievements of the KOICA-funded Aral Sea GRIP project, made possible through strong partnerships with public and private stakeholders, with a focus on finance-related activities.   

“The Aral Sea GRIP project, implemented with the support of the Ministry of Ecology, Environmental Protection and Climate Change of Uzbekistan and the Council of Ministers of Karakalpakstan, has delivered tangible, bold results,” said Mr. Shin Myung Seop, Director of KOICA’s Uzbekistan office. “These achievements have been instrumental in creating climate resilience, addressing the adverse impacts of climate change, and improving access to finance for climate-smart causes.” 

With its innovative model, the project facilitated over $1 Billion in Sustainable and Green bond issuance on the London Stock exchange, which are $575 million mobilized with SQB, funding 14 green and social initiatives and $455 million mobilized with Agrobank, with 80% targeting Climate-Smart Agriculture activities in Uzbekistan.

“GGGI’ KOICA-funded Aral Sea GRIP project has played a pivotal role in the development of Agrobank’s green bond,” said Mr. Aleksandr Pogassyan, Agrobank ESG Expert, during his congratulatory remarks. “This achievement is significant for at least two reasons. First, the timeframes—despite initial skepticism from our Senior Management about meeting such tight deadlines, with joint efforts the team delivered the results. Notably, GGGI paid special attention to actually building our capacity and guided us through the process to enable us to access capital markets in the future. Second, the scale of success—our most ambitious target was $300 million, but with GGGI’s exceptional support, we mobilized $455 million in green investments. This milestone reaffirms our commitment to supporting green initiatives.”   

Moreover, Aral Sea GRIP supported the development of a $50 Million Climate-Smart Agriculture (CSA) Financing Facility for SQB, which will fund people engaged in agriculture who are willing to transition to more eco-friendly, sustainable farming.  

“On behalf of SQB Bank, I extend my gratitude to KOICA and GGGI for their invaluable support and contributions to successful bond issuance and the development of Climate-Smart Agriculture (CSA) Financing Facility,” said Mr. Shuxrat Yakubov, Deputy CEO of SQB Bank. “SQB remains committed to supporting joint initiatives, including in the Aral Sea region, to address the climate crisis and promote innovative, climate-smart practices across industries. As a champion of ESG principles in Uzbekistan, SQB is proud to be transitioning into a green bank with the support of the international community, paving the way for sustainable development.” 

Additionally, Aral Sea GRIP designed 57 green grant investment projects pipeline for the Ministry of Agriculture. The project held capacity-building trainings for 15 financial institutions on green financing, ESG, and green business planning, and, in cooperation with German Sparkassenstiftung, developed four Green and Resilient Business Plans to support the access of the farmers to CSA loans.  

“This project’s achievements in supporting green and sustainable finance are highly commendable,” said Mr. Utkir Jumanov, Head of Secretariat of the Ministry of Ecology, Environmental Protection and Climate Change of Uzbekistan. “We are hopeful that these efforts will significantly contribute to preventing, mitigating and adapting to climate issues. I extend my heartfelt congratulations to all involved parties, including KOICA, GGGI, and the banks SQB and Agrobank, for this step toward greener future in Uzbekistan.”