Uzb grge policyBrief ExSum 5 20210301 at


Make greater efforts to reduce environmentally harmful subsidies



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un doc uz ENG green recovery

Make greater efforts to reduce environmentally harmful subsidies
.
Fuels in Uzbekistan used by energy 
and other industries are highly subsidized and at the same time pollution charges are low and do not 
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effectively incentivize industry to introduce carbon-neutral technologies. Replacing subsidies for fuel 
use with direct cash transfers to low-income households would better target poverty while providing an 
incentive to limit energy consumption. This would require improving the tax/transfer system. 
Agricultural subsidies have declined as a percentage of gross farm receipts over the past decade. 
However, support remains largely tied to agricultural production. This encourages overuse of land, 
water, fertilizers, and pesticides. Furthermore, environmental criteria are not sufficiently integrated in 
agricultural support programmes. 
8.
More systematically tie Investment decisions for infrastructure to effectively integrating 
environmental or climate mitigation and adaptation criteria, with a particular focus on mining, 
chemicals, manufacturing (cement), urban development, housing and construction and waste 
management.
 
Increased use of charges and mechanisms could mobilize the private sector to finance 
investment in infrastructure and service provision, as well as to engage the financial sector in promoting 
green investment. There is also a need to improve control, efficiency, transparency, and integrity of 
procurement processes related to infrastructure projects, and to streamline administrative procedures for 
granting environmental permits. Modernization of production and facilities could be encouraged by 
increasing pollution charges, gradually at first, starting with the largest polluters. 
9.

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