Uzbekistan to introduce mandatory environmental damage insurance system
Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan plans to introduce environmental incentives for enterprises and a mandatory environmental damage insurance system. These measures are outlined in the presidential decree of 7 February as part of the 2025 state program.
Starting from 1 August, a new incentive mechanism will take effect for enterprises in Categories I and II that impact the environment, encouraging them to transition to eco-friendly technologies.
In the first phase, enterprises that install ambient air pollution monitoring stations will receive several benefits. Their outstanding environmental compensation payments will be written off, and they will be eligible to reclaim up to 50% of such payments over two years. Previously, these funds were directed to the national budget.
In the second phase, enterprises that install monitoring stations and, within a year, equip their facilities with dust-collection, gas-cleaning, and local water treatment systems will be eligible for a refund of up to 70% of their compensation payments over two years.
These benefits will be granted based on conclusions from the Ministry of Ecology, Environmental Protection, and Climate Change through Public Service Centers and the Unified Portal of Interactive Government Services.
According to a Cabinet of Ministers resolution dated September 7, 2020, enterprises classified as high-risk (Category I) for environmental impact include highways, subways, railways, freight terminals, airports, metallurgical plants, oil and gas drilling and development sites, thermal, photovoltaic, and wind power plants with a capacity of 300 MW or more, cement plants, chemical complexes, pharmaceutical enterprises, and others.
Category II enterprises, which pose a moderate environmental risk, include regional roads and bridges, aerodromes, water intake facilities, waste disposal sites (for settlements with 100,000 to 200,000 people), railway depots, wastewater treatment plants with a capacity of 50,000 to 280,000 cubic meters per day, food and oil processing enterprises, biological additive production, power transmission lines, oil and gas pipelines, tanneries with dyeing and lacquering processes, construction enterprises (excluding asbestos and cement production), paper and cardboard factories, poultry farms, and others.
The Ministry of Ecology has been tasked with developing a draft law by November 1, 2025, for the phased introduction of a mandatory environmental damage insurance system for enterprises and organizations.
Under this system, if an enterprise causes environmental damage (air, water, or soil pollution, hazardous substance leaks, etc.), the insurance company will be responsible for financing the cleanup.
High-risk enterprises will be required to pay increased insurance premiums, providing an additional economic incentive to adopt cleaner technologies and modernize production processes.
Additionally, Prime Minister Abdulla Aripov must approve a program within two months to reduce air pollution. This document will outline the phased installation of purification systems in industrial enterprises and greenhouses, along with strict monitoring of their operation.