Karakalpakstan Could Generate Up to $100 Million Annually from Carbon Credits
Economy
Karakalpakstan plans to introduce a carbon credit mechanism that could generate an estimated $50–100 million in annual revenue for the region. A forest carbon credit programme is also planned to cover 50,000 hectares in the Aral Sea region by the end of the year.
Reducing greenhouse gas emissions has been identified as a priority amid climate change. Officials were instructed to launch the carbon credit mechanism within a month and hold talks with major importing countries, including Japan, South Korea, the United States, Canada, the United Kingdom and Australia. Revenue from carbon credit exports will supplement infrastructure funding and remain in Karakalpakstan.
The region also plans to expand geological exploration. So far, geological work has covered only 20% of Karakalpakstan’s territory. A Chinese investor has invested $33 million and introduced technology at the Urusoy deposit in Karauzyak district, where 4 tonnes of gold reserves were identified across 200 hectares and 320 jobs were created. Officials were instructed to establish a gold mining and processing cluster with 1,000 jobs and reassess mineral reserves.
In Kungrad, 1 million tonnes of technical salt are sold annually without processing. The Kuskanatau deposit in Bozatau district could produce 45,000 tonnes of sodium sulfate annually from mirabilite, as well as magnesium sulfate from astrakhanite. A German company plans to invest $30 million in a quartzite deposit in Beruniy district, launch crystalline silicon production and establish annual exports worth $25 million.
Projects are also being developed along the “raw materials — finished products — exports” value chain. At least $150 million is planned for textile and leather projects, $200 million for electrical engineering, and $100 million for energy-efficient construction materials. A $120 million auto-components project is planned in Nukus, while pharmaceutical projects worth $50 million will be launched across several districts.
A $50 million project is being launched in Takhtakupyr district with Italian company Bonifika Ferrarizi. Tomatoes and grain crops will be grown on 2,000 hectares using Italian technology, deeply processed and exported to Europe.
Road shows will be held in every district by October 15. The region has been tasked with attracting $5 billion in investment next year and launching projects capable of creating 2,000–3,000 high-income jobs.
The meeting also focused on employment and household incomes. Some 2,000 Karakalpak entrepreneurs have repaid 2.145 trillion soums in loans on time over three years. A 300 billion soum credit line at 16% will be opened for reliable clients. With the Entrepreneurship Development Company covering four percentage points, the rate for entrepreneurs will fall to 12%. The other eight banks were also instructed to develop similar products.
The region also plans to expand geological exploration. So far, geological work has covered only 20% of Karakalpakstan’s territory. A Chinese investor has invested $33 million and introduced technology at the Urusoy deposit in Karauzyak district, where 4 tonnes of gold reserves were identified across 200 hectares and 320 jobs were created. Officials were instructed to establish a gold mining and processing cluster with 1,000 jobs and reassess mineral reserves.
In Kungrad, 1 million tonnes of technical salt are sold annually without processing. The Kuskanatau deposit in Bozatau district could produce 45,000 tonnes of sodium sulfate annually from mirabilite, as well as magnesium sulfate from astrakhanite. A German company plans to invest $30 million in a quartzite deposit in Beruniy district, launch crystalline silicon production and establish annual exports worth $25 million.
Projects are also being developed along the “raw materials — finished products — exports” value chain. At least $150 million is planned for textile and leather projects, $200 million for electrical engineering, and $100 million for energy-efficient construction materials. A $120 million auto-components project is planned in Nukus, while pharmaceutical projects worth $50 million will be launched across several districts.
A $50 million project is being launched in Takhtakupyr district with Italian company Bonifika Ferrarizi. Tomatoes and grain crops will be grown on 2,000 hectares using Italian technology, deeply processed and exported to Europe.
Road shows will be held in every district by October 15. The region has been tasked with attracting $5 billion in investment next year and launching projects capable of creating 2,000–3,000 high-income jobs.
The meeting also focused on employment and household incomes. Some 2,000 Karakalpak entrepreneurs have repaid 2.145 trillion soums in loans on time over three years. A 300 billion soum credit line at 16% will be opened for reliable clients. With the Entrepreneurship Development Company covering four percentage points, the rate for entrepreneurs will fall to 12%. The other eight banks were also instructed to develop similar products.
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