The Presidential Decree No. PD–110 establishes the institutional, legal, and operational framework to enable Uzbekistan's participation in international carbon markets, especially under Article 6 of the Paris Agreement. It defines key mechanisms to issue and manage carbon credits (including ITMOs), attract investment, and support low-carbon development in line with the country’s "Uzbekistan–2030" strategy and its Nationally Determined Contribution (NDC). It sets clear targets, oversight mechanisms, and timelines to ensure compliance with international climate goals and mobilize climate finance.
Rules for market participation and credit allocation
The decree introduces specific rules for engaging in the international carbon credit market, particularly through Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6, through the following rules:
- Only activities included in the GHG inventory and aligned with the NDC are eligible for credit issuance.
- Priority is given to mitigation activities associated with conditional NDC commitments, which rely on international support.
Credit allocation structure:
20% of issued ITMOs from each project will be retained (not traded) to:
- Ensure that national climate commitments are met; and
- Avoid overselling risks.
80% of ITMOs may be exported to international markets under:
- Public-private partnerships (with foreign/local investors).
- Government-involved projects (subject to state approval).
Institutional coordination and governance
- Prime Minister A.N. Aripov is tasked with overall oversight and coordination across government bodies.
- The Cabinet of Ministers is responsible for defining the volume of tradable credits and establish revenue distribution rules.
- The Interagency Council for Green Economy Transition is given the mandate to monitor compliance with Article 6 rules and define annual credit export limits.
- The Ministry of Economy and Finance acts as Designated National Authority (DNA). It is tasked with:
-- Overseeing participation in international carbon markets.
-- Developing and approving procedures, legal instruments, and documentation standards.
-- Granting authorization for credit issuance and export.
-- Proposing annual market volumes and managing sales of credits from state-approved projects.
Registry and oversight:
- All carbon credit transactions will be managed through a National Carbon Registry under the Ministry of Economy and Finance.
- The registry is set to launch by January 1, 2026, in coordination with the Ministry of Ecology and international partners.
