Sughd

Dushanbe

Kŭhistoni Badakhshon

nohiyahoi tobei jumhurí

Khatlon

Tajikistan

The Sustainable and Inclusive Green Acceleration Programme (“SAIGA”; or “the Programme”) in Kyrgyz Republic, Tajikistan, Türkiye and Uzbekistan (hereafter the “focus countries”) is created to accelerate decarbonization and market transformation through adoption of climate mitigation technologies at scale by leveraging the financial sector to catalyse innovative private sector investments in line with the national NDC objectives. 

The Programme will support private sector businesses, predominantly micro, small and medium enterprises (“MSMEs”) and households, as end beneficiaries, and Financial Institutions (“FIs”) as intermediaries to focus on gender-responsive climate mitigation activities, including demand-side energy efficiency (in industry, commerce and buildings) and decentralized renewable energy investments (including battery storage). 
The objective of SAIGA is to help financial intermediaries and end beneficiaries in the target countries to overcome some of the major barriers hindering the quick uptake of mitigation practices and technologies to drive decarbonisation. 

These barriers include: i) technical barriers, such as low levels of awareness both among FIs and end beneficiaries of the availability and benefits of such technologies; low levels of awareness of climate risks they face; fragmentation of supply chains; ii) financial barriers, such as access to long-term affordable green finance both for FIs and end beneficiaries, especially underserved segments (MSMEs, households, women-led businesses, rural populations and businesses; etc); higher upfront costs of adopting some of these technologies compared to business as usual (“BAU”), and iii) the regulatory environment in the targeted countries is not yet sufficient to incentivise decarbonisation efforts by the financial sector. 

These barriers have been further exacerbated by the COVID pandemic, as well as recent geopolitical instability and conflicts across different regions that have led to a certain de-prioritisation of the climate agenda. 

The Programme is built around the mutually reinforcing components, as described below which facilitate the desired transformation and will be applied as most relevant for the different markets. Building on these three Components, the Programme brings solutions to some of the above-mentioned barriers to allow for an acceleration of decarbonisation efforts driven by the financial system. 

For more information about the barriers and programme components addressing them please refer to the section below and to the section Project Description.

Community-based and civil society organizations are technically and financially supported to design and deliver locally led initiatives that address complex socio-ecological challenges to foster resilience, enhance livelihoods and deliver global environmental benefits.

Mobilising private sector climate finance is an urgent priority to enable vulnerable countries to move towards a climate-resilient future rapidly.

This programme aims to achieve a systemic transformation of the financial sector in 13 countries by providing concessional financing for climate change mitigation and adaptation projects for small and medium enterprises, housing associations, municipalities, public utilities, and others.

Building upon Green Economy Financing Facility (FP025), it aims to leverage existing networks in each of the participating countries to develop climate-compatible financial systems, so that five per cent of banking sector assets, amounting to USD 180 billion, will be channeled to Paris-aligned pathways by the tenth year of programme implementation.

The programme comprises a lending envelope of USD 620 million for banks, microfinancing institutions and leasing companies, and a grant-funded technical assistance facility of USD 49 million to assist financial institutions with developing green transition plans. To foster gender-inclusive development and greater economic inclusion, the programme intends to commit at least 20 per cent of the loans to women or women-led businesses and 30 per cent to end borrowers outside the countries’ main cities.

Tajikistan is highly vulnerable to climate change, facing rising temperatures and shifting precipitation patterns posing serious threats to agriculture and livestock. Predicted decreases in crop yields, particularly for rice, wheat, and sunflower, along with heightened risks to livestock health, exacerbate the vulnerabilities of the country, especially in rural areas. Natural disasters are anticipated to worsen, affecting people, ecosystems, and the economy. Prevalent poverty levels and heavy reliance on agriculture make adaptation particularly challenging, necessitating substantial private sector investment due to limited public finance.

To respond to these challenges, the programme aims to enhance climate resilience at both the national and local levels through improved public sector coordination and technical capacity. It will strengthen public sector capacity for climate-resilient management of natural resources, invest in community capacity for adaptation, and improve market-based approaches to strengthen livelihoods. Moreover, the project supports locally-led adaptation by building local agency capacities to assess climate risks and implement appropriate solutions, while also enhancing national capacity for emissions accounting and refining laws for green economic development. It promotes innovative technologies, supports research and cross-learning initiatives, and facilitates access to green investment credit lines.

Geography

Tajikistan

Recent documents

Adaptation Fund

Climate Investment Funds

Green Climate Fund

Global Environment Facility