The French Development Agency is implementing the project “Financing Sustainable Development of the livestock sector” in cooperation with “Xalq Banki”. This partnership provides access to concessional green financing lines and international expertise, enabling the introduction of global environmental standards into local agribusiness.
Livestock sector through the lens of sustainability
“Xalq Banki” views livestock financing as more than simply increasing production volumes. Priority is given to projects that ensure food security through resource-efficient technologies: saving water and feed, increasing productivity, and minimizing harmful emissions.
Special attention is paid to niche areas such as fish farming and rabbit farming. Compared to traditional livestock farming, these segments require significantly less water and land resources, have a lower carbon footprint, and provide faster returns. Supporting these areas helps diversify the portfolio and reduce environmental risks.
Environmental criteria: what is important for the bank
A project is recognized as “green” if it includes energy efficiency measures, water recycling systems, the use of renewable energy sources, and effective waste management. At the same time, the bank focuses not only on formal indicators but also on the actual environmental impact.
Mandatory requirements include environmental impact assessment, compliance with environmental and social standards, occupational safety, and responsible use of natural resources.
Particular attention is given to the impact of projects on local ecosystems. For example, in fish farming, the volume of water intake, its filtration before being returned to water bodies, and its impact on groundwater levels are strictly analyzed.
From consultation to results
“Xalq Banki” supports clients at all stages — from consulting on modern technology selection to preparing environmental reporting and adapting business plans to international green standards.
Practice confirms the economic effect: the implementation of solar panels and drip irrigation systems has reduced operating costs in some farms by 30–40%, directly contributing to higher net profits.
Barriers and prospects
The main challenges for farmers remain the high initial investment costs of green technologies, lack of technical knowledge, and the complexity of international environmental reporting procedures.
In the next 3–5 years, a sharp increase in the share of green loans in the bank’s portfolio is expected. Priorities will include digital eco-monitoring, climate risk insurance, and support for exports of environmentally friendly products.
