In accordance with Presidential Resolution of the Republic of Uzbekistan No. RP-84 dated January 13, 2022, the Committee of Veterinary and Livestock Development (CVLD), together with the French Development Agency (AFD), is implementing the project “Financing Sustainable Development of the Livestock Sector”.
The project is aimed at promoting the sustainable, climate-resilient development of Uzbekistan’s livestock sector by supporting investments through credit lines, guarantees, investment subsidies, and technical assistance provided to stakeholders and final beneficiaries.
At the center of the partnership are farmers and their farms: access to concessional financing is combined with the introduction of modern technologies that improve both productivity and environmental sustainability in livestock farming.
Within the framework of the project, JSCB “Hamkorbank” acts as a key financial partner and credit line operator. The Bank ensures the allocation of financial resources to end borrowers, conducts investment project assessments, and provides client support at all stages of implementation. Special attention is given to financing projects that introduce resource-efficient and environmentally sustainable solutions in the livestock sector.
Thus, cooperation between “Hamkorbank” and AFD is forming a new model of climate finance, contributing to the modernization of the sector, increasing its resilience to climate change, and strengthening national food security.
A new approach to agricultural lending
“Hamkorbank” approaches livestock sector financing as a tool for systemic transformation. Priority is given to projects that increase productivity while reducing pressure on natural resources: saving water and feed, minimizing emissions, and introducing modern management technologies. Drip irrigation systems and energy-efficient equipment are already improving the profitability of farms.
Niche areas such as fish farming and rabbit farming are treated as separate priorities. They require less land and water, generate faster returns, and have a lower carbon footprint compared to traditional livestock farming. Their development helps diversify the agricultural sector and reduce environmental risks.
Environmental screening: how projects are selected
Environmental performance is assessed based on specific criteria: energy efficiency, water recycling systems, the use of renewable energy sources, and waste processing — for example, biogas production from manure. Environmental impact assessment, compliance with occupational safety standards, and the absence of harm to biodiversity are also mandatory. Financing is provided only after a positive environmental review.
Special attention is given to the impact of projects on local ecosystems. In fish farming, water abstraction volumes, filtration quality, and impacts on groundwater are analyzed. Projects with inefficient water use are not eligible for financing.
Training, support, and results
“Hamkorbank” supports clients not only financially but also through expert assistance. Bank specialists help farmers select appropriate technologies, prepare environmental reporting, and adapt their businesses to international requirements. Regular seminars and training programs increase awareness of climate-related projects among clients.
The results speak for themselves: farmers who have implemented solar panels or drip irrigation systems have reduced energy and water costs by 30–40%, which has directly contributed to increased profits.
Institutional changes are also taking place in parallel: two new coordinator positions for climate finance have been introduced in the credit and ESG department of Hamkorbank’s head office. Their task is to increase the share of environmental projects in the portfolio and provide practical support to clients at all stages.
Challenges and prospects
The main barrier is the limited awareness among farmers: many are not familiar with which projects fall under the climate category and what benefits this status provides. Expanding information outreach and advisory support remains a priority.
Over the next 3–5 years, climate solutions are expected to become a standard part of agricultural financing. Technologies will become more affordable, conditions for farmers will improve, and digital monitoring systems will be widely introduced in farms. All this creates a foundation for the sustainable development of the livestock sector and the strengthening of national food security.
Source: JSCB “Hamkorbank”
