Uzbekistan is a landlocked country at the heart of Central Asia, with diverse ecosystems ranging from deserts and semi-deserts to mountains, forests, wetlands, river valleys and the unique landscapes of the Aral Sea region. These ecosystems support rich biodiversity while providing essential services for agriculture, water security, livelihoods and economic development. Protected areas now cover around 12% of the country's territory.
At the same time, Uzbekistan's biodiversity faces growing pressures from land degradation, desertification, water scarcity, unsustainable resource use and climate change. These challenges are particularly significant in a country where more than 80% of the territory consists of desert and semi-desert ecosystems and where water resources are increasingly constrained. Protecting and restoring biodiversity therefore requires not only effective environmental policies, but also adequate and sustainable financing.
Uzbekistan joined UNDP BIOFIN in 2021 to strengthen the country's approach to biodiversity finance. Working with the Government, civil society, the private sector and other national partners, UNDP BIOFIN has assessed biodiversity-related policies and institutions, tracked public expenditure and identified financing needs and opportunities to mobilize additional resources for national biodiversity priorities.
Building on this evidence, Uzbekistan has identified 11 priority biodiversity finance solutions spanning public finance, private investment and innovative financial mechanisms. Together, these solutions have the potential to mobilize approximately US$1.09 billion by 2034, helping close the biodiversity finance gap while strengthening the contribution of nature to Uzbekistan's sustainable development.
Finance Solution 1: National Blended Finance Facility
This finance solution proposes the establishment of a national blended finance facility to mobilize public and private investment for biodiversity conservation. By combining public funding with commercial and development finance, the facility aims to reduce investment risks, attract private capital, and scale up financing for biodiversity-positive projects.
Finance Solution 2: Biodiversity Offsets
This finance solution introduces biodiversity offsets as a regulatory instrument to compensate for unavoidable biodiversity losses resulting from development projects. The mechanism follows the mitigation hierarchy, ensuring that impacts are first avoided and minimized before offsets are applied to achieve no net loss or a net gain for biodiversity.
Finance Solution 3: Biodiversity Credit Market
This finance solution explores the feasibility of establishing a voluntary biodiversity credit market in Uzbekistan. Biodiversity credits would create incentives for private investment in ecosystem restoration and conservation while enabling companies to demonstrate measurable positive impacts on nature.
Finance Solution 4: Reform of Harmful Subsidies
This finance solution identifies and gradually reforms subsidies that negatively affect biodiversity. Redirecting public financial support toward sustainable agriculture, forestry, water management, and other biodiversity-positive activities will help reduce environmental pressures while improving the efficiency of public spending.
Finance Solution 5: Biodiversity Budget Tagging
This finance solution integrates biodiversity into Uzbekistan's public finance system through Biodiversity Budget Tagging. Building on the country's Green Budget Tagging reforms, it will improve the identification, monitoring, and reporting of biodiversity-related expenditures, strengthening evidence-based budget planning and accountability.
Finance Solution 6: Conservation License Plates
This finance solution introduces conservation-themed vehicle license plates, allowing citizens to voluntarily contribute to biodiversity conservation through vehicle registration fees. The mechanism is expected to generate additional domestic revenue while increasing public awareness of biodiversity conservation.
Finance Solution 7: Biodiversity Crowdfunding
This finance solution establishes a national crowdfunding mechanism to mobilize financial contributions from citizens, businesses, and philanthropists for biodiversity conservation projects. The platform will support community initiatives and increase public participation in financing nature.
Finance Solution 8: Payment for Ecosystem Services (PES)
This finance solution pilots a Payment for Ecosystem Services (PES) programme in the Fergana Valley, rewarding land users for protecting watersheds, improving soil conservation, and maintaining ecosystem services. The pilot is intended to demonstrate the feasibility of expanding PES to other regions of Uzbekistan.
Finance Solution 9: REDD+ for Forest Conservation
This finance solution promotes the implementation of REDD+ to mobilize climate finance for forest conservation, restoration, and erosion prevention. By reducing emissions from deforestation and forest degradation, the initiative seeks to generate new funding while strengthening ecosystem resilience.
Finance Solution 10: Nature Bonds
This finance solution expands Uzbekistan's existing SDG and Green Bond framework to enable the issuance of biodiversity and nature bonds. The objective is to attract institutional investment for projects that restore ecosystems, conserve biodiversity, and support sustainable natural resource management.
Finance Solution 11: Academic Capacity Development
This finance solution institutionalizes biodiversity finance education by integrating the BIOFIN methodology into the curriculum of the Central Asian Green University. The initiative develops national expertise in biodiversity finance through university education, professional training, and the adaptation of BIOFIN's global learning resources into Uzbek.
Developing a Roadmap to Close the Biodiversity Finance Gap
BIOFIN completed Uzbekistan's first Biodiversity Finance Plan, identifying a biodiversity financing gap of at least US$60 million through 2028 and proposing 11 priority finance solutions. The plan estimates that these solutions could mobilize up to US$1.09 billion by 2034, providing a long-term strategy to increase investment in biodiversity conservation and support implementation of the National Biodiversity Strategy and Action Plan. During the reporting period, one finance solution was fully operationalized, while agreements were secured to implement two additional systemic finance solutions between 2026 and 2027.
Launching Uzbekistan's First Biodiversity Finance Academic Programme
BIOFIN successfully implemented the first finance solution under Uzbekistan's Biodiversity Finance Plan by launching the country's first academic module on biodiversity finance. Developed in partnership with the Central Asian Green University, the course is now offered as part of the Master's Programme in Sustainable Finance, institutionalizing the BIOFIN methodology within the national higher education system. The initiative is complemented by the adaptation of the BIOFIN global online course into Uzbek, helping build a new generation of biodiversity finance professionals.
Advancing Biodiversity Budget Reform
BIOFIN secured an agreement with the Ministry of Economy and Finance to implement Biodiversity Budget Tagging as part of Uzbekistan's broader Green Budget Tagging reform. The initiative will integrate biodiversity considerations into the national budgeting system, improve the tracking of biodiversity-related expenditures, strengthen transparency, and support evidence-based public finance decisions. The partnership also includes work on reforming subsidies harmful to biodiversity, marking a major step toward mainstreaming biodiversity into fiscal policy.
Introducing Innovative Green Finance
BIOFIN contributed to the development of Uzbekistan's new "Green Ticket" mechanism, introduced through a Presidential Decree in 2026. The voluntary scheme allows passengers using air, rail, metro, and taxi services to offset the carbon footprint of their travel, generating additional resources for the national Yashil Makon (Green Space) afforestation programme. It represents one of Uzbekistan's first government-backed innovative financing mechanisms for nature.
Building National Expertise in Biodiversity Finance
BIOFIN and the Central Asian Green University launched a dedicated academic module on biodiversity finance in 2026. The initiative responds to the need for professionals who can design and implement nature-finance instruments across government and the financial sector. It complements the BIOFIN global course, which is now available in Uzbek, and supports capacity development for the more than 53,000 public servants involved in Uzbekistan’s green transition.
