OF THE CABINET OF MINISTERS OF THE REPUBLIC OF UZBEKISTAN<\/span><\/strong><\/p>\n

ON APPROVAL OF TEMPORARY REGULATIONS ON THE PROCEDURE FOR IMPLEMENTING PROJECTS ON INTERNATIONAL TRADE OF GREENHOUSE GASES<\/span><\/strong><\/p>\n

In order to ensure the implementation of the Decrees of the President of the Republic of Uzbekistan dated October 12, 2023, UP – No. 169 \u201cOn additional measures for the accelerated development of industry and its basic sectors\u201d<\/span>. A<\/span>nd \u201cOn measures to increase the effectiveness of reforms aimed at transitioning the Republic of Uzbekistan to a \u201cgreen\u201d economy to 2030″ UP – No. 436 dated December 2, 2022, the Cabinet of Ministers decides:<\/span><\/p>\n

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1.<\/span>According to the Decree of the President of the Republic of Uzbekistan \u201cOn measures to improve the effectiveness of reforms aimed at transition of the Republic of Uzbekistan to a green economy MC No. 436 by 2030\u201d dated December 2, 2022, the Ministry of Economy and Finance:<\/span><\/div>\n<\/div>\n<\/div>\n
In accordance with Article 6 of the Paris Agreement (Paris, December 12, 2015) as the competent national authority coordinating the implementation of measures under the Sustainable Development Support Mechanism<\/span>;<\/span><\/p>\n
For information, it is determined to act as an executive body responsible for regulation, coordination and management of emissions trading at the international and national level, as well as monitoring and reporting within the framework of projects in this area.<\/span><\/p>\n
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2.<\/span>Approve a temporary regulation on the procedure for the implementation of projects to organize international trade in greenhouse gases in accordance with the Annex.<\/span><\/div>\n<\/div>\n<\/div>\n
The Ministry of Energy together with interested ministries and departments should create a mechanism for effective exchange of necessary financial and technical information with the national authority within the framework of these projects, in order to register carbon units resulting from projects implemented in the energy sector, including with the participation of foreign investors on the basis of public-private partnership, according to international standards.<\/span><\/p>\n
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3.<\/span>It should be noted that:<\/span><\/div>\n<\/div>\n<\/div>\n
From March 10, 2024, the volumes of reduced greenhouse gas emissions resulting from projects implemented within the framework of public-private partnership with foreign and local investors or in other forms with the participation (on assignment) of state organizations and enterprises will be fully utilized by the Government of the Republic of Uzbekistan;<\/span><\/p>\n
All<\/span> projects to reduce greenhouse gas emissions and the development of carbon units shall be coordinated with the Ministry of Economy and Finance<\/span>;<\/span><\/p>\n
In order to prevent double counting of carbon units developed within the <\/span>country;<\/span> it <\/span>is prohibited<\/span> to register voluntary carbon market projects in accordance with the requirements of more than one national, international or independent standard and carbon market.<\/span><\/p>\n
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4.<\/span>Ministry of Economy and Finance:<\/span><\/div>\n<\/div>\n<\/div>\n
together with the Ministry of Digital Technology, fully digitize the system for reviewing, approving and monitoring voluntary carbon unit market project proposals by May 1, 2024, and ensure that each stage of implementation of these projects can be monitored;<\/span><\/p>\n
Until October 1, 2024 jointly with the Ministry of Ecology, Environmental Protection and Climate Change in the Republic of Uzbekistan to implement the program of introduction of international carbon in market and non-market means, providing guidance on the implementation of rules, methods and procedures of the cooperative approach mechanism and the mechanism of sustainable development in the country in accordance with paragraphs 2 and 4 of Article 6 of the Paris Agreement;<\/span><\/p>\n
Establish a National Carbon Registry to record voluntary market-based carbon credit projects, <\/span>greenhouse gas emission reductions<\/span> and verified carbon credits received;<\/span><\/p>\n
Integrate the national carbon system following the implementation of an electronic information system for monitoring, reporting and verification of climate change (MRV).<\/span><\/p>\n
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5.<\/span>The Ministry of Economy and Finance:<\/span><\/div>\n<\/div>\n<\/div>\n
Coordinate timely consideration and implementation of project proposals for the voluntary market of carbon units, realization of verified carbon units and distribution of revenues to the state budget<\/span>;<\/span><\/p>\n
Provide monthly analytical information to the Administration of the President of the Republic of Uzbekistan on the attraction of investment projects in the voluntary market of carbon units and the effectiveness of their implementation.<\/span><\/p>\n
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6.<\/span>The control over the implementation of this resolution <\/span>shall be assigned<\/span> to <\/span>Deputy Prime Minister of the Republic of Uzbekistan – Minister of Economy and Finance <\/span>J.A. <\/span>Kuchkarov<\/span>.<\/span><\/div>\n<\/div>\n<\/div>\n
Prime Minister of the Republic of Uzbekistan A. ARIPOV<\/span><\/p>\n
ANNEX <\/span><\/strong><\/p>\n
To the Resolution of the Cabinet of Ministers <\/span><\/p>\n
No. 117 of March 7, 2024<\/span><\/p>\n
REGULATION<\/span><\/strong><\/p>\n
On the procedure for implementation of projects on international trade in <\/span>Exhaust<\/span> gases<\/span><\/p>\n
CHAPTER 1: BASIC RULES<\/span><\/strong><\/p>\n
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1.<\/span>This Regulation determines the procedure for implementation of projects on the organization of international emissions trading and is valid until the approval of the national procedure for implementation of the Sustainable Development Support Mechanism in accordance with Article 6 of the Paris Agreement (Paris Agreement, December 12, 2015).<\/span><\/div>\n<\/div>\n
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2.<\/span>The following basic concepts are used in this Regulation:<\/span><\/div>\n
Exhaust gases<\/span><\/strong> – one of the groups of gases controlled by the Paris Agreement – carbonate anhydride (CO2), methane (CN4), nitrogen oxide (N2O), chlorofluorocarbon (NFC5), perfluorocarbon (PFC5) and sulfur fluoride (SF6);<\/span><\/p>\n
carbon units (carbon offset, carbon credit)<\/span><\/strong> – a sales certificate representing a reduction in emissions of one ton of carbon dioxide (CO2) or an equivalent amount of another greenhouse gas;<\/span><\/p>\n
Voluntary market for carbon units<\/span><\/strong> – a market in which business entities voluntarily buy or sell carbon units;<\/span><\/p>\n
Voluntary market for carbon unit\u2019s project<\/span><\/strong> – projects aimed at the development of carbon units based on the reduction of greenhouse gas emissions and sale on the voluntary market for carbon units<\/span>;<\/span><\/p>\n
Interdepartmental Council<\/span><\/strong> – Interdepartmental Council for coordination of measures on transition to green economy in the Republic of Uzbekistan, established by the Decree of the President of the Republic of Uzbekistan \u2116 PP-436 dated December 2, 2022;<\/span><\/p>\n
National Authority (hereinafter – National Authority)<\/span><\/strong> – Ministry of Economy and Finance of the Republic of Uzbekistan;<\/span><\/p>\n
Working body (hereinafter – the Working Body)<\/span><\/strong> – the project office of the \u201cCenter for Green Economy Projects\u201d under the Ministry of Economy and Finance of the Republic of Uzbekistan;<\/span><\/p>\n
Initiator of the project of the voluntary market of carbon units<\/span><\/strong> (hereinafter – the project initiator) – state bodies and organizations, private organizations, foreign resident organizations, international financial organizations, submitted an initiative proposal for the implementation of the project of the voluntary market of carbon units (hereinafter – the project initiator) in the territory of the Republic of Uzbekistan;<\/span><\/p>\n
Organization supporting the development of verified carbon units<\/span><\/strong> (hereinafter – Service Organization) – a legal entity that provides support on the basis of a contract and is the initiator of the project of the voluntary market of carbon units in the organization of development, marketing and sale of verified carbon units;<\/span><\/p>\n
Validation <\/span><\/strong>– assessment by the Validator of compliance of the project of the voluntary market of carbon units according to the criteria of international standards of carbon units based on the provisions of the Paris Agreement and (or) international standards of carbon units, which includes compliance with the project and technical documentation with the established requirements;<\/span><\/p>\n
Validation Report<\/span><\/strong> – a report prepared by the Validator on the completion of validation conducted in accordance with the provisions of the Paris Agreement and (or) international standards for carbon units;<\/span><\/p>\n
Validator<\/span><\/strong> – an organization appointed by mutual agreement of the Project initiator and the Service Provider and accredited in accordance with the Paris Agreement and (or) international standards of carbon units;<\/span><\/p>\n
verification<\/span><\/strong> – periodic verification and approval by the verifier of the actually achieved result on reduction of greenhouse gas emissions as a result of project implementation during each project monitoring period in accordance with the provisions of the Paris Agreement and (or) international standards of carbon units;<\/span><\/p>\n
Verifier\u2019s report<\/span><\/strong> – a report prepared by the verifier on the completion of verification conducted in accordance with the provisions of the Paris Agreement and (or) international standards of carbon units;<\/span><\/p>\n
Verifier <\/span><\/strong>– an organization appointed by mutual agreement of the project initiator and service provider and accredited in accordance with the Paris Agreement and (or) international standards of carbon units;<\/span><\/p>\n
state<\/span>-private partnership –<\/span><\/strong> cooperation based on pooling the resources of a partner on behalf of the state and the private sector in order to implement a legally formalized public-private partnership project for a certain period of time;<\/span><\/p>\n
state partner<\/span><\/strong> – the Republic of Uzbekistan and (or) executive authorities of the Republic, local executive bodies, as well as other legal entities authorized by the Cabinet of Ministers of the Republic of Uzbekistan or their associations;<\/span><\/p>\n
Private partner <\/span><\/strong>– a legal entity or an association of legal entities registered in accordance with the legislation of the Republic of Uzbekistan or a foreign state, which has concluded an agreement on public-private partnership with a public partner<\/span>;<\/span><\/p>\n
National<\/span> registry of carbon units<\/span><\/strong> – a registry in which verified carbon units are <\/span>recorded,<\/span> transactions related to them are recorded and maintained by the National Authority.<\/span><\/p>\n<\/div>\n
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3.<\/span>In order to prevent double counting of carbon units, it is prohibited to register a voluntary market for carbon units in accordance with the requirements of more than one national, international or independent standard and in carbon markets.<\/span><\/div>\n<\/div>\n
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4.<\/span>In accordance with this Regulation:<\/span><\/div>\n
All investment projects implemented in the territory of the Republic of Uzbekistan – projects aimed at reducing greenhouse gas emissions from Type 1 projects and aimed at the production of verified carbon units according to Chapter 4 of the Regulation<\/span>;<\/span><\/p>\n
projects implemented on the terms of public-private partnership or with the participation of state organizations and enterprises (customer)-projects aimed at the production of verified carbon units based on the reduction of greenhouse gas emissions utilized by the state as a result of type 2 projects are implemented in accordance with Chapter 5 of the Regulations.<\/span><\/p>\n<\/div>\n
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5.<\/span>The project of the voluntary market of carb<\/span>on units <\/span>shall be carried out<\/span> by<\/span> accordance with the scheme of development, coordination, implementation and monitoring of projects of the voluntary market of carbon units, which is presented in Annex 1 to the Regulation.<\/span><\/div>\n
CHAPTER 2: REQUIREMENTS FOR VOLUNTARY CARBON MARKET PROJECTS<\/span><\/strong><\/p>\n<\/div>\n
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6.<\/span>Voluntary market for carbon units projects are implemented in the following areas:<\/span><\/div>\n
Renewable energy projects:<\/span><\/strong> providing energy to national or regional grids from renewable energy sources such as solar, wind, hydro, waste and biomass energy, as well as the expansion of renewable energy sources connected to small grid or off-grid sources;<\/span><\/p>\n
Energy efficiency projects:<\/span><\/strong> introduction of technologies and solutions that reduce energy consumption without compromising the volume and quality of services or products;<\/span><\/p>\n
Green and low-carbon industry development projects: <\/span><\/strong>attracting innovative technologies that reduce resource consumption, greenhouse gas emissions, and low-waste technologies to the industrial sector, as well as effective green investments<\/span>;<\/span><\/p>\n
Reforestation projects:<\/span><\/strong> planting and stable cultivation of trees, improving and expanding the exploitation of all forest systems, Agro-forestry or pastures;<\/span><\/p>\n
Waste management and recycling:<\/span><\/strong> waste management related to the creation of sustainable methods of producing energy or useful products (composting, biogas, etc.);<\/span><\/p>\n
Water, sanitation, hygiene and green buildings:<\/span><\/strong> projects aimed at climate change mitigation and\/or adaptation.<\/span><\/p>\n<\/div>\n
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7.<\/span>Nationally Determined Contributions (NDCs) of greenhouse gas emissions reduced by the project are allowed to produce verified emission units of no more than 1 percent of the annual greenhouse gas emissions reported to the nation for the most recent year in the biennial update report and direct them to voluntary markets.<\/span><\/div>\n<\/div>\n
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8.<\/span>The national authority reserves 1% of the volume of verified carbon units and uses it to reduce the risk of resale in relation to the national commitment to the Paris Agreement. The national authority shall annually publish information on the use of common reserve units.<\/span><\/div>\n<\/div>\n
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9.<\/span>Confirmed carbon units produced by projects <\/span>will not be diverted and used as International Mitigation Outputs (ITMOs) transferred for Nationally Determined Contributions (NDCs) of other countries<\/span> by project<\/span>.<\/span><\/div>\n
CHAPTER 3: METHODOLOGY FOR THE DEVELOPMENT, IMPLEMENTATION AND MONITORING OF VOLUNTARY CARBON MARKET PROJECTS<\/span><\/strong><\/p>\n<\/div>\n
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10.<\/span>The following current methodologies of the International Standards for Carbon Units are used in the development, implementation and monitoring of projects:<\/span><\/div>\n
Gold Standard;<\/span><\/p>\n
Verra’s<\/span> Verified Carbon Standard<\/span>;<\/span><\/p>\n
\u201cClean Development Mechanism\u201d standard;<\/span><\/p>\n
\u201cISO 14064 Standards\u201d set of indicators for greenhouse gas emissions quantification, monitoring, reporting and verification programs.<\/span><\/p>\n<\/div>\n
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11.<\/span>The National Authority continuously updates the list of methodical international standards of carbon units acceptable to the country to determine the potential for effectiveness of mitigation measures.<\/span><\/div>\n
CHAPTER 4. PROCEDURE FOR IMPLEMENTATION OF PROJECTS OF THE VOLUNTARY MARKET OF CARBON UNITS<\/span><\/strong><\/p>\n<\/div>\n
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12.<\/span>Projects<\/span> first – category <\/span>shall be implemented based on the principles of public-private partnership (hereinafter – PPP) within the framework of the Law of the Republic of Uzbekistan dated May 10, 2019 \u201cOn Public-Private Partnership\u201d (hereinafter – the Law).<\/span><\/div>\n
Projects second category<\/span> submitted by the national authority as a proactive proposal <\/span>shall be implemented<\/span> in<\/span> accordance with the procedure stipulated in Chapter 5 of the Regulation.<\/span><\/p>\n<\/div>\n
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13.<\/span>A public or private partner based on the PPP principle may initiate a project. The project initiated by a private partner shall be implemented in accordance with Article 17 of the Law<\/span><\/div>\n<\/div>\n
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14.<\/span>The State Institution \u201cCenter for Green Economy Projects\u201d under the National Authority participates at the sites managed by the private enterprise on which projects <\/span>will be implemented<\/span> as a state partner.<\/span><\/div>\n<\/div>\n
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15.<\/span>The private initiator shall coordinate the project concept with the state partner and submit the coordinated project concept to the National Authority with the following annexes:<\/span><\/div>\n
Information provided in the sample form in the second annex of this Regulation is prepared according to the draft proposal for a voluntary market of carbon units<\/span>;<\/span><\/p>\n
Conclusion of the project expertise conducted by the \u201cCenter for Complex Expertise of Projects and Import Contracts\u201d in accordance with the established procedure.<\/span><\/p>\n<\/div>\n
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16.<\/span>The national authority shall assess the greenhouse gas emission<\/span>,<\/span> reduction potential of the project proposal and its compliance with the requirements of this Regulation within ten working days from the date of submission of the application.<\/span><\/div>\n
The following cases shall be grounds for rejection of the application:<\/span><\/p>\n
That the project concept does not meet the requirements of this Regulation;<\/span><\/p>\n
Based on the requirements of this Regulation, incomplete or incorrect information in the project concept<\/span>;<\/span><\/p>\n
That the project does not comply with the methodologies of the standards mentioned in Chapter 3 of this Regulation.<\/span><\/p>\n
I<\/span>n case of negative conclusion of the national<\/span> body, within twenty working days the national body shall<\/span> send the project initiator for processing, indicating the reasons for rejection.<\/span><\/p>\n<\/div>\n
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17.<\/span>In case of approval of the project concept, the National Authority will send a letter of initial consent to the proposal of the voluntary market of carbon units in the form of the sample provided in Annex 3 to this Regulation and authorize the start of project implementation, as well as the process of selecting <\/span>a private partner based on the G<\/span>PP principle in accordance with Article 17 of the Law.<\/span><\/div>\n
In this case, at the stage of selecting the winner of the tender, the number of criteria that are included for payments specified in the third paragraph of paragraph 25 of this Regulation is used.<\/span><\/p>\n<\/div>\n
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18.<\/span>After selection of a private partner in accordance with the legislation on public-private partnership, a contract on public-private partnership <\/span>shall be concluded<\/span>,<\/span> with the winner, and then it shall be submitted to the National Authority within three working days.<\/span><\/div>\n<\/div>\n
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19.<\/span>Within three working days after receiving the PPP agreement, the National Authority shall send to the project initiator a draft agreement to <\/span>be drawn up<\/span> between the National Authority and the project initiator on the implementation of the project, as well as a notice for the payment provided for in the fourth paragraph of this item.<\/span><\/div>\n
The project initiator shall <\/span>pay <\/span>no later than,<\/span> ten working days:<\/span><\/p>\n
Signs the project implementation agreement with the National Authority<\/span>;<\/span><\/p>\n
Pay 20 times the basic calculation amount for afforestation projects and 40 times the basic calculation amount for non-afforestation projects.<\/span><\/p>\n<\/div>\n
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20.<\/span>The project initiator shall register the project in one of the international standards listed in Chapter 3 of this Regulation and ensure notification of the national authority by e-mail in the prescribed form by the registering administration of the international standard.<\/span><\/div>\n<\/div>\n
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21.<\/span>Within three working days after receiving notification of the project registration from the International Standards Administration, the National Authority shall enter the project into the National Register of Carbon Units.<\/span><\/div>\n<\/div>\n
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22.<\/span>In the course of project implementation, the project initiator shall conduct monitoring in accordance with the methodology specified in the project technical documents. At the end of each six-month period, by the 15th day of the following month, the project monitoring report shall be submitted to the National Authority in accordance with the <\/span>example project monitoring report of the voluntary market of carbon units, provided in Annex 4 to this Regulation.<\/span><\/div>\n<\/div>\n
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23.<\/span>In accordance with the schedule specified in the project technical documentation, the project initiator shall carry out the verification of the project with the involvement of an independent verification organization.<\/span><\/div>\n
Upon completion of the verification, the project initiator shall notify the National Authority in writing of the results of the verification within five working days.<\/span><\/p>\n<\/div>\n
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24.<\/span>The project initiator shall ensure the release of verified carbon units with specific (unique) serial numbers and marking according to the international standard and notify the National Authority by e-mail in the prescribed form.<\/span><\/div>\n<\/div>\n
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25.<\/span>After the sale of verified carbon units, the project initiator within ten working days submits to the National Authority information on the volume and cost of sales together with supporting documents and within one month makes the following payments:<\/span><\/div>\n
Payment of opportunity cost of 5% of the sales volume of verified carbon units at the national contribution level (NDC)<\/span>;<\/span><\/p>\n
At least 50 percent of the remaining funds after deducting the amount of investments made from the sales volume of verified carbon units (including in the form of technology).<\/span><\/p>\n<\/div>\n
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26.<\/span>Payments provided by paragraphs 25 and 31 of this Regulation shall be distributed in the following order:<\/span><\/div>\n
90 %<\/span> of payment to the State Budget of the Republic of Uzbekistan;<\/span><\/p>\n
10 %<\/span> to the Center for Green Economy Projects (Working Body).<\/span><\/p>\n<\/div>\n
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27.<\/span>The project initiator submits to the National Authority an annual report on sales and implementation of the project within twenty working days after the end of each year during the project implementation period, as specified in the project technical documents.<\/span><\/div>\n<\/div>\n
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28.<\/span>At the end of each year, the National Authority publishes information on the country’s participation in carbon markets on its official web pages and on the official web pages of the Working Body.<\/span><\/div>\n
CHAPTER 5. PROCEDURE FOR THE IMPLEMENTATION OF PROJECTS BASED ON THE INITIATIVE PROPOSAL OF THE NATIONAL AUTHORITY<\/span><\/strong><\/p>\n<\/div>\n
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29.<\/span>The National Authority will make initiative proposal for the implementation of projects aimed at the production of verified carbon units (Type 2), which <\/span>will be utilized<\/span> by the state for emissions.<\/span><\/div>\n
When implementing projects of this category, the Working Body acts as the initiator of the project.<\/span><\/p>\n<\/div>\n
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30.<\/span>The project initiator may implement projects independently or with the involvement of a service organization.<\/span><\/div>\n
Involvement of a service organization is carried out in accordance with the procedure stipulated by the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan \u201cOn additional measures to improve the procedure for organizing a tender and conducting electronic online auctions\u201d No. 18 dated January 12, 2022.<\/span><\/p>\n<\/div>\n
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31.<\/span>The scoring criteria shall be reviewed on the tender documents and determined:<\/span><\/div>\n
That at least 50 percent of the sales of verified carbon units resulting from the verification of the project <\/span>should be sent<\/span> to the National Authority;<\/span><\/p>\n
The application of the methodologies of the International Carbon Units Standards in the development and implementation of the projects presented in Chapter 3 of these Regulations,<\/span><\/p>\n
If the proposal <\/span>is submitted<\/span> from foreign companies, the involvement of local companies to work on the project.<\/span><\/p>\n<\/div>\n
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32.<\/span>After the winner of the tender is determined in accordance with the established procedure, the contract on project implementation <\/span>shall be signed<\/span> with the National Authority within ten working days from the date of announcement of the results of the tender.<\/span><\/div>\n<\/div>\n
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33.<\/span>The amount received because of sales from the project of verification carbon units shall <\/span>be sent<\/span> to the National Authority, and will be distributed in accordance with the requirements of paragraph 26 of this Regulation.<\/span><\/div>\n<\/div>\n
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34.<\/span>Monitoring and reporting on the implementation of the project <\/span>shall be carried out<\/span> based on project technical documentation.<\/span><\/div>\n
CHAPTER 6. FINAL RULES<\/span><\/strong><\/p>\n<\/div>\n
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35.<\/span>Relevant project initiators shall be responsible for the accuracy and completeness of information and documents submitted to the national authority in accordance with the requirements of this Regulation.<\/span><\/div>\n<\/div>\n
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36.<\/span>Persons guilty of violating the requirements of this Regulation shall be liable before the law.<\/span><\/div>\n
.<\/span><\/span><\/p>\n<\/div>\n<\/div>\n
The document presented in an unofficial translation from the database of the law firm \u201cS VERENIN\u2019S LEGAL GROUP\u201d.<\/em><\/span><\/p>\n
The document presented from the database of the law firm \u201cS VERENIN\u2019S LEGAL GROUP\u201d.<\/em><\/span><\/p>\n
The document presented as of ___6.06____2024<\/em><\/span>\u0433<\/em><\/span>.<\/em><\/span><\/p>\n
.<\/span><\/span><\/p>\n
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.<\/span><\/span><\/p>","protected":false},"excerpt":{"rendered":"
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