Assessment of the fossil fuel subsidy reform impact in Uzbekistan

Assessment of the fossil fuel subsidy reform impact in Uzbekistan

September 6, 2023

The Central Asian countries, being among the world’s most carbon-intensive economies, face the challenge of reducing heavy dependence on fossil fuels. The most effective solution is to eliminate or reduce the significant state support (subsidies) provided to fossil fuel sector. Assessment of the size and structure of state support in the fossil fuel sector is a new topic for Uzbekistan, although the sector largely determines the socio-economic and environmental situation in the country. At the same time, Uzbekistan has committed to reduce the specific greenhouse gas emissions per unit of GDP by 35% by 2030 compared to 2010 levels. Against the background of such an ambitious commitment, the reform of the state support for fossil fuels becomes one of the key challenges for the country’s long-term development. It is important to implement the reform as painlessly as possible to prevent instability in the energy sector and related industries, decline in economic output, as well as the aggravation of social problems. More detailed information about the results of the study can be found at the link.

Document Type
Regions and Countries
Sustainable Development Goals