“Green Mortgage Mechanisms” introduced in Tashkent

November 29, 2019

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Business training “Green Mortgage Mechanisms” was held for the specialists of the banking sector of Tashkent region  on 22 November. The event was organized jointly by the Government of the Republic of Uzbekistan, UNDP Uzbekistan and the Global Environment Facility. Its main objective was to encourage construction of energy-efficient and low-carbon housing in rural areas.

The training was attended by 25 representatives of specialized banks in Uzbekistan, such as: Qishloq Qurilish Bank and Ipoteka Bank. The training participants were presented with the essence and significance of “green mortgage” as a bank product in line with international best practice, as well as the main advantages and mechanisms of "green mortgage’, including procedures and financing schemes for "green mortgage” within the framework of the State rural housing programme.

Leading business trainer, the Head of the strategic development and analytics department of the Republican Higher School of Business and Management Mr. Ravshan Kakharov noted:

 “The mechanisms of a “green mortgage” are the part of transition strategy to a green economy in Uzbekistan. Its essence lies in the gradual transition to alternative energy sources and increasing the energy efficiency of technologies used in the construction of residential buildings. Such a transformation of the economy should ensure balanced socio-economic development, taking into account the requirements of ecological standards for environmental protection. This model is promising in the implementation of the sustainable development goals adopted by the UN in 2015.”

 “Green mortgage” is a bank product that allows homebuyers to purchase energy-efficient and low-carbon houses. The main benefit of such housing is savings on electricity and heating. This is beneficial for the owner and the environment as well, as burning hydrocarbon fuel is not wasted for lighting needs and house heating. So, greenhouse gas emissions reduce accordingly.


It was noted at the training that the "green" mortgage is beneficial for the banks as well, considering they will have an innovative bank product that meets environmental requirements, allowing them to attract clients in rural areas.

The bank experts provided feedback on the level of organization and informational content of business training. According to them, they gained knowledge on a banking product that they can use in future, which is important at the current stage of the country's economic reforms.

“Market Transformation for Sustainable Rural Housing in Uzbekistan” is our project which was established in 2017 and has contributed to the construction of 800 efficient houses in five regions (Samarkand,Bukhara,Surkhandarya,Fergana and Khorezm) of Uzbekistan since then.