ADB Approves $50M Grant to Boost Green Jobs and Economic Resilience in Tajikistan

A major milestone under the program is the issuance of Tajikistan’s first sovereign green bonds, signaling a commitment to global sustainable finance standards.

The Asian Development Bank (ADB) has approved a $50 million grant to help Tajikistan strengthen its reform agenda and accelerate the transition toward a greener, more resilient, and inclusive economy. The funding—implemented under Subprogram 2 of the Enabling Climate-Responsive Business Environment Improvement Program—focuses on advancing structural reforms that create opportunities for green employment, particularly for women and small businesses.

Financed through the Asian Development Fund (ADF), the grant supports reforms aimed at strengthening fiscal governance, enhancing economic diversification, increasing transparency, deepening access to green and inclusive finance, improving digital infrastructure, and boosting Tajikistan’s competitiveness in international markets.

“Subprogram 2 builds on solid progress made under last year’s reforms and introduces targeted changes essential to Tajikistan’s long-term stability and growth,” said ADB Country Director Ko Sakamoto. “By supporting digital transformation, green entrepreneurship, and sustainable finance, this program lays the foundation for an economy that is modern, climate-resilient, and inclusive—especially for women.”

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Key Reform Areas

1. Expanding Access to Climate-Friendly Financing

The program introduces reforms to enable increased lending for small and medium-sized enterprises (SMEs), including:

• Amendments to Tajikistan’s leasing law to grow the leasing sector.

• Development of a national green taxonomy to guide sustainable investments.

• Fiscal incentives to support climate-aligned SMEs.

• A new law on organic production, supporting both food safety and green agribusiness exports.

These steps are expected to make it easier for businesses—especially rural and women-led enterprises—to access capital and participate in climate-smart production and supply chains.

2. Strengthening Governance and Climate Finance Transparency

To improve accountability and resilience, the program supports:

• Climate budget tagging mechanisms.

• Expanded fiscal risk reporting to include climate shocks such as floods, droughts, and regional energy disruptions.

These reforms help Tajikistan proactively plan for climate risks while strengthening investor confidence.

3. Accelerating Digital Transformation

Recognizing technology as a key driver of modernization, the program supports:

• Improved cybersecurity frameworks.

• Fiscal incentives for tech-based innovation and high-growth startups.

• Establishment of a national information technology park to foster digital entrepreneurship and job creation.

These measures are expected to generate new high-skill jobs, especially for youth and women.

4. Improving Export Capacity and Market Access

To support Tajikistan’s growing trade potential, reforms include:

• Operationalizing support for small exporters.

• Progress toward a Small Exporter Facilitation Center.

• Prioritizing climate-friendly, women-owned, and rural enterprises for export support.

A major milestone under the program is the issuance of Tajikistan’s first sovereign green bonds, signaling a commitment to global sustainable finance standards.

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Long-Term Partnership and Impact

Since joining ADB in 1998, Tajikistan has benefited from substantial investments supporting roads, irrigation networks, energy infrastructure, and public services. Major completed or ongoing initiatives include:

• Rehabilitation of hydropower plants such as Nurek and Golovnaya

• Construction of strategic highways including Dushanbe–Tursunzade and Ayni–Panjakent

• Restoration of power connectivity to the Central Asian Power System (CAPS)

During the 2021–2024 ADF cycle, the fund helped lift 384,000 people out of poverty and supported the creation of over 500,000 jobs across the region.

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This latest financing marks an important step in supporting Tajikistan’s commitment to achieving climate-resilient growth, bridging rural income gaps, expanding women’s participation in the green economy, and advancing the government’s national development goals aligned with the UN Sustainable Development Goals and Paris Agreement commitments.