The United Nations has teamed up with the Government of Tajikistan in a crucial step toward developing the green bond market. It specifically includes the UN Economic and Social Commission for Asia and the Pacific, the UN Resident Coordinator Office, and the Agency for Securities Market Development and Special Registration of Tajikistan in cooperation with the Luxembourg Green Exchange, to mobilize essential funds for climate goals and further develop the country’s Green Economy Strategy for 2023-2037.
This collaboration aims at the issuance of green, social, sustainability, and sustainability-linked bonds. These are some of the key financing instruments for raising required funds toward achieving Tajikistan’s climate goals, as identified as one of the top priorities of the nation’s Green Economy Strategy. The financial gap in achieving those climate targets is believed to be about 7% of the country’s GDP-a point that calls for an effective approach to financing without further ado.
In this regard, the UN is providing thematic bond issuance in-depth training, together with its partners, to bond issuers and stakeholders in Tajikistan. The thematic training is designed to enhance understanding among participants in thematic bond issuance regarding the identification of appropriate tools, taxonomy best practices, principles, external review, and reporting. Such resources also cover practical aspects, examples, and regional case studies aimed at empowering the participants with the ability to handle various issues concerning thematic bond issuance.
This training is crucial,” underlined Majidi Yusuf Khairullo, First Deputy Minister of Finance of Tajikistan. He said, “The training allows participants to get acquainted with the thematic bond issuance process: to identify which tools are best fitted with their needs, to review the best practices in terms of taxonomy, principles, external review, and reporting, and examine practical aspects, examples, and regional case studies.” The said program is supposed to fill the financial gap and stimulate climate activities in Tajikistan.
Hamza Malik, ESCAP’s director of Macroeconomic Policy and Financing for Development, attended the partnership. “Through our collaboration with the Agency for Securities Market Development and Special Registration of Tajikistan, UN RCO and Luxembourg Green Exchange, we are working assiduously with the Government of Tajikistan to fast-track financing toward climate adaptation and mitigation activities in the country,” said Malik. He further reiterated that “The Green Bond Issuance training is a key tool to increase awareness of how innovative financing instruments, such as Green Bonds, can effectively be tapped in pursuit of the SDGs and NDC ambitions effectively.”
The training also covers some of the various obstacles thematic bond issuers face in the forms of limited awareness, capacities, and higher issuance costs. According to Parvathy Ramaswami, the UN Resident Coordinator, showing the way in the realm of regulatory clarity and capacity-building for green finance was urgent. “Clear guidelines and a solid regulatory framework allow green finances to grow. Our training is targeted at building capacities so that actors have everything they need to beat these challenges,” she added.
Nigina Abdurakhmonzoda, Director of the Agency for Securities Market Development and Special Registration of the Ministry of Finance of Tajikistan, further pointed out the relevance of cooperation. “In 2024, the government of Tajikistan has been taking initial steps to create a green bond market, forming a corresponding corporate segment.”. Therefore, in the framework of a valued partnership with the UN, we continue exploring opportunities to mobilize both public and private finance toward climate action, including green bond issuances. I strongly encourage partners to join us in these efforts to boost sustainable finance in Tajikistan and pursue a greener economy,” Abdurakhmonzoda said.
It will be a milestone to achieve sustainable finance in Tajikistan and build resilience within the country. This collaborative effort between ESCAP, UN RCO, and the Government of Tajikistan opens new avenues toward greener futures, as it evidences commitment to sustainable development and climate action.
The green bond market is at the forefront, with the world increasingly setting its gaze on climate change, hence mobilizing resources toward environmental and social sustainability in Tajikistan. The country, through this collaboration, will further strengthen its position on the global landscape of sustainable finance and its aspiration to progress toward climate goals through innovative financial solutions.