Uzbekistan Opens Carbon Market with New Emissions Law

Uzbekistan has taken a major step toward developing its carbon market with a new law that formally introduces a system for generating and trading carbon credits. The recently signed ‘Law on Limiting Greenhouse Gas Emissions’ sets the foundation for domestic and international exchange of carbon units linked to verified emissions reductions.

Men examining young trees and reviewing paperwork at a tree nursery in Uzbekistan. AI generated picture.

Under the new legislation, developers of certified environmental projects—those that reduce or remove greenhouse gases—will be eligible to receive carbon units for every tonne of CO₂ equivalent avoided or sequestered. These units will be logged in a national carbon registry and can be traded within the country.

International credit sales will require official approval. Developers must first obtain authorisation from the Ministry of Economy and Finance to sell abroad. Furthermore, only entities designated by the Cabinet of Ministers will be allowed to engage in cross-border credit transactions.

A statement from the president’s office highlighted the law’s intended impact: ‘The adoption of the draft law will allow us to reduce greenhouse gas emissions in our country and regulate the trading of carbon units generated as a result on international markets, as well as fulfil Uzbekistan's obligations under the Paris Agreement.’

The law applies to multiple greenhouse gases, including carbon dioxide, methane, and nitrous oxide, and outlines how emissions reductions will be tracked and credited. Although it doesn’t directly reference Article 6 of the Paris Agreement, it lays the groundwork for future alignment with international carbon market standards.

Uzbekistan’s current green pledge, issued in 2021, aims to cut GHG emissions per unit of GDP by 35% by 2030 compared to 2010 levels. An updated Nationally Determined Contribution (NDC) is expected later this year ahead of the UN environmental summit in Brazil.