Uzb grge policyBrief ExSum 5 20210301 at

Priority Areas for Discussion and Action 
As a foundation for considering the specific, short- and longer-term sectoral recommendations made in 
this paper, it is advisable to put in place a set of actions and policy measures which address a broader set 
of principles and institutional, financial and human capacities for implementation.
Among them could be 
the following: 
1.
Screen all elements of stimulus packages for their longer terms implications across the key 
dimensions of long-term growth and equitable livelihood potential, resilience to future shocks, and 
decarbonization and sustainable growth trajectory
. Priority actions should create jobs and reduce 
inequality. They should be actions that can be implemented quickly, including “shovel-ready” targets for 
public investment, with a focus on non-emissions-intensive infrastructure projects, and existing policy 
frameworks that can be rapidly scaled up. At the same time, they should favor cross-sectoral, cross-
government approaches that take a long-term, systemic approach to growth and sustainability rather 
than focus on single technological outcomes. Policy makers could also avoid relaxing existing 
environmental regulations to provide near-term relief, as the costs of longer-term vulnerability will 
often outweigh short-term economic relief. 
Summary of Key Sectoral Challenges and Opportunities. 
Energy.
Inefficient energy use costs at least 4.5% of the GDP annually, with electricity generation, heating supply and buildings 
being important sources of energy loss. Almost 40 % of Uzbekistan’s available generation capacity is past its service life leading 
to power outages. In the absence of policies to encourage energy efficiency and decarbonization, Uzbekistan by 2030 will find 
itself facing sharp reductions in oil and gas production (and exports) and increasingly reliant on coal. Research shows that 
potential of renewable energy sources in Uzbekistan is 270 million tons of reference fuel, which is more than three times the 
annual need for energy resources, and most of this potential is in solar energy.
 
Solar electricity costs have fallen 80% worldwide 
in 10 years, and are even more favorable in Uzbekistan, which enjoys plenty of sunshine. 
Industry. 
The industrial sector, dominated by chemical manufacturing and mining, uses almost a quarter of total energy use in 
the country, and almost all of it natural gas. The sector is challenged not only to cut emissions and become less polluting, but 
also to respond to the rapidly reshaping of global production systems which require cleaner production processes, innovation 
and a talented labor pool to remain competitive. A Presidential decree goes some way to support an industrial policy, calling for 
“the formation and implementation of a tax and tariff policy that encourages the reorientation of the economy from the export of 
raw materials to the production of high-quality products and deep processing,” and more is needed.