How transport emissions could bring green finance to Tajikistan

Tajikistan is exploring innovative ways to finance its green initiatives, with a new Asian Development Bank report suggesting the country could leverage its growing transport emissions for funding. While Tajikistan has yet to implement a carbon tax or carbon market, its strategic documents outline plans to develop these mechanisms, alongside promoting electric transport.

The ADB report focuses on how countries in the Central Asia Regional Economic Cooperation (CAREC) program can utilize carbon pricing in the transport sector. Carbon pricing essentially makes polluting more expensive, while simultaneously attracting climate financing for projects that reduce emissions, such as transitioning to electric buses and improving urban transport infrastructure.

Transport emissions are a rapidly expanding concern in Tajikistan. In 2022, the sector accounted for approximately 12% of the country's total greenhouse gas emissions. More alarmingly, transport emissions have surged by an average of 15% annually over the past two decades, significantly outpacing the overall national emissions growth of about 5% per year.

This rapid increase makes the transport sector a prime target for emission reduction strategies. The ADB report specifically identifies electric transport as a key solution for Tajikistan, highlighting its potential to curb pollution and simultaneously generate revenue for much-needed green projects.