ADB grants $50 million to support Tajikistan’s green transition

Asian Development Bank (ADB) has approved a $50 million grant to support the Government of Tajikistan in advancing key structural reforms that promote the creation of green jobs, particularly for women.

The grant, provided via ADB’s Asian Development Fund (ADF) under Subprogram 2 of the Enabling Climate-Responsive Business Environment Improvement Program, aims to enhance economic diversification, strengthen fiscal governance and transparency, accelerate digital transformation, and elevate Tajikistan’s competitiveness in both regional and global markets, Caliber.Az reports, citing ADB’s website.

“Building on the achievements of subprogram 1 approved last year, subprogram 2 delivers a sequenced and forward-looking package of reforms that are vital for Tajikistan’s long-term growth and resilience,” Ko Sakamoto, ADB Country Director for Tajikistan said.

He stated that promoting green entrepreneurship, supporting small exporters, advancing digital transformation, and mobilising green finance boosts competitiveness and helps the government build a more sustainable, resilient economy for all citizens.

Subprogram 2 focuses on key reforms to drive Tajikistan’s green and sustainable transition. It includes amendments to the leasing law to expand financing for small and medium enterprises (SMEs), developing a green investment taxonomy, introducing incentives for climate-neutral SMEs, and adopting a law on organic production.

The program also strengthens governance and transparency by improving fiscal risk reporting and implementing climate budget tagging.

Digital transformation is supported through enhanced cybersecurity, tax incentives for innovation, and an IT park to boost the digital economy.

Export competitiveness is reinforced by supporting small exporters, prioritising green and women-led enterprises, and issuing Tajikistan’s first sovereign green bonds.

The program is implemented in close collaboration with development partners to attract investment and improve the business climate.

Tajikistan joined ADB in 1998, and the partnership has since delivered tangible results for its people.

ADB has also helped build power transmission lines and substations, reconnect Tajikistan’s electricity grid to the Central Asian power network, and rehabilitate major hydropower plants, including Nurek and Golovnaya.

By Jeyhun Aghazada