At the COP29 climate summit in Baku, a decision was made to increase annual funding to combat the climate crisis to US$300 billion.  This step aims to support developing countries grappling with the consequences of climate change.

Tajikistan's Minister of Energy and Water Resources, Daler Juma, commented:
“For Tajikistan, one of the countries most vulnerable to climate change, such decisions are particularly significant. While US$300 billion is still insufficient, we see positive progress.  These funds are crucial for climate adaptation and infrastructure development.”

He also highlighted Tajikistan’s active promotion of "green energy" projects, including the construction of the Roghun hydropower plant, the development of green hydrogen technologies, and electricity exports through the CASA-1000 project.

Tajikistan’s need for funding

A report on sustainable financing in Central Asia presented in September in Astana highlighted Tajikistan’s struggles with the severe impacts of climate change, despite its minimal contribution to global greenhouse gas emissions.

Glacial retreat and water resource depletion pose significant threats to Tajikistan's economy, particularly its agriculture sector, which is vital for food security.

To address these challenges, the Tajik government has developed strategic documents aimed at transitioning to a "green economy."  However, achieving these goals requires substantial financial resources, necessitating foreign investments and innovative financial instruments.

By improving its investment environment, Tajikistan can attract the funds needed to foster a sustainable economy and ease the strain on its national budget, making the green transition more achievable.

According to the sustainable financing report, Central Asian countries face enormous financial challenges in implementing climate reforms and adaptation measures.  For Tajikistan, basic climate needs are estimated at US$2 billion, representing 19% of the country’s GDP (US$10.5 billion).

However, a detailed analysis in the World Bank’s Country Climate and Development Report estimates total climate action costs for Tajikistan at US$96 billion.  Of this, US$17 billion is needed for climate adaptation measures, while US$79 billion is allocated for reforms through 2050.

What Tajikistan needs to qualify for climate funding

Yasin Anwar, Chairman of the Regional Office of GIP (a U.S.-based infrastructure investment fund) in Central Asia, recommends that countries in the region, including Tajikistan, adopt green project taxonomies to encourage sustainable financing.

This system of classification helps define which projects or activities are environmentally sustainable. Essentially, it provides criteria for evaluating whether an organization’s actions contribute to environmental protection or restoration.

Priority projects for funding

Tajikistan’s green project priorities include:

• Investing in renewable energy -- the government aims to increase the share of renewables in the energy mix.
• Developing ecotourism -- Tajikistan has significant potential for ecotourism, thanks to its rich natural resources and reserves like Zorkul, Romit, Tigrovaya Balka, Dashti Jum, and the Tajik National Park.
• National Program "Green Country" -- this program focuses on climate adaptation, green economy development, and environmental improvement. Its goals include reducing greenhouse gas emissions, expanding green spaces, creating protected areas, and enhancing ecological security.
• Glacier Preservation -- Tajikistan actively promotes initiatives to prevent glacial melting.
• Modernizing industrial enterprises -- Investments are needed to develop industries using environmentally friendly and cost-effective local raw materials, as well as low-waste technologies.  The implementation of these measures requires technical and financial support from external sources, including grants and concessional loans from international financial organizations, global climate funds, and development partners.