Project features

The Government of Uzbekistan (GoU), with support from the World Bank, is embarking on a two-year project aimed at building capacity for effective participation in the Article 6 Mechanism of the Paris Agreement. It seeks to strengthen Uzbekistan's institutional and technical capacity to manage Internationally Transferred Mitigation Outcomes (ITMOs), enabling the country to leverage the global carbon market while achieving its national climate targets. The project is divided into two phases: the first year focuses on reviewing existing national climate strategies and regulations, and providing recommendations for an Article 6 strategy and program authorization. The second year will concentrate on refining procedures for ITMO authorization, tracking, and corresponding adjustments, to improve the monitoring and reporting of emission reductions.

Services provided

Task 1: Article 6 Readiness and Climate Finance Strategy

The consultant supported the GoU in implementing Article 6 strategy to ensure beneficial participation/future in the carbon market, including:

•    Developing eligibility criteria for Article 6 activities, including qualitative and quantitative criteria for sectors, conduct a Marginal Abatement Cost Curves (MACC) analysis to assess sectoral mitigation potential;
•      Supporting the lead consultant in integrating Article 6 activities into the NDC framework, national climate targets and preventing overselling of ITMOs, while advising on pricing and fee policies for ITMOs and corresponding adjustments;
•      Establishing linkages between LT-LEDS, National GHG inventory, and NDC reporting, and their impact on for eligibility criteria.

Task 2: Institutional and Regulatory Framework to Meet Article 6 Requirements

The consultant assessed and recommended the necessary institutional and regulatory changes including:

•      Stakeholder mapping and assessment of existing governance, identifying gaps in institutional capacity;
•      Supporting the lead consultant in providing training to relevant government agencies on Article 6 institutional needs and propose recommendations for designating relevant government entities for authorizing, transferring, tracking, and accounting for ITMOs; 
•      Developing regulatory framework recommendations for Article 6, defining roles, responsibilities, and carbon credit ownership in Uzbekistan’s legal context. Supporting the drafting of necessary procedures/Decree, forms, and templates for Article 6 implementation.

Task 3: Technical Capacity Building

The consultant supported the lead consultant in providing technical capacity building for Article 6 participation, including:

•      Workshops and knowledge documents (notes, presentations) on various Article 6 readiness elements for stakeholders;
•        Delivered trainings and knowledge documents on national/international standards, crediting periods, ITMO authorization, accounting methods, and administrative levies, supporting the drafting of an Initial Report to UNFCCC;
•       Assist in preparing annual and biennial reports on ITMO transactions in the second year;
•     Assist in preparation technical documents to determine the volume of ITMOs to be authorized during the project implementation period.