Rising utilization fees may undermine Uzbekistan’s fight against air pollution

Starting May 1 of this year, the utilization fee for electric vehicles less than three years old will increase from 30 times the base calculation unit (BCU) to 120 times, meaning the current fee of 11 million UZS will rise to 45 million UZS. How will this decision impact Uzbekistan's environment?

Recently, climate issues have become more pressing not only in Uzbekistan but worldwide. Previously fertile regions have turned into deserts, people are paying increasingly high prices for drinking water, and glaciers are melting at an alarming rate due to global warming.

According to data from the IQAir portal, air quality in Uzbekistan has significantly deteriorated in recent years. In fact, at times, the capital city, Tashkent, has recorded worse air pollution levels than heavily polluted cities in India and Pakistan.

Several factors contribute to this issue. For example, the use of motor vehicles in Tashkent is significantly higher than in other regions of Uzbekistan. According to the National Statistics Committee, as of January 1, 2024, there were 103 passenger cars per 1,000 people in the country. Among all cities and regions, Tashkent has the highest number of vehicles, which naturally leads to increased fuel consumption and greater air pollution.

Impact of electric vs. traditional vehicles on the environment

If we look at the experiences of developed countries, we can see that in densely populated areas, maintaining environmental sustainability relies on well-established public transportation systems and incentives for using electric vehicles. Public transport in these regions stands out for its convenience and strictly regulated pricing policies, making it an attractive alternative to private cars.

According to a 2023 report by the Korea Transport Institute, cities with large populations tend to have highly developed public transport networks. In this ranking, Hong Kong, China, secured the top position, followed by Zurich, Switzerland, in second place and Stockholm, Sweden, in third. Compared to private cars, public transport plays a crucial role in reducing air pollution. Additionally, widespread adoption of electric vehicles also contributes significantly to improving air quality.

Electric vehicles, running entirely on electricity, do not emit carbon dioxide (CO₂) while in operation. In contrast, conventional gasoline and diesel vehicles release an average of 150–200 grams of CO₂ per kilometer traveled. Furthermore, since electric vehicles lack a combustion process, they do not produce toxic particulates such as NOx, a class of nitrogen oxides that contribute to air pollution. Traditional cars, however, emit an average of 0.05–0.15 grams of these pollutants per kilometer, releasing harmful PM10 and PM2.5 particles into the air.

Will the widespread adoption of electric vehicles come to a halt?

Amid rising fuel prices, the demand for electric vehicles in Uzbekistan has grown significantly in recent years. In 2021, the country imported just 809 electric vehicles, but by 2024, this figure had surged to 24,095 – a key step toward the transition to green energy. However, recent regulatory restrictions have begun to slow down imports. In January of this year, only 613 electric vehicles were brought into the country – 2.5 times fewer than in the same period last year. This decline coincided with the launch of technical testing at the Piskent testing ground.

Starting in May, the sharp increase in the utilization fee is expected to further curtail electric vehicle imports. A fee structure that far exceeds the purchasing power of the population could not only stifle EV adoption but also reinforce the dominance of the country’s monopolized automotive industry.

Do other countries have a utilization fee?

In the European Union, there are no strictly defined utilization fees for electric vehicles. For instance, in Italy, neither domestically produced nor imported electric vehicles are subject to such a fee. Likewise, in Germany, consumers are not required to pay a utilization fee, though manufacturers and importers bear responsibility for the safe disposal of electric vehicle batteries. In the Netherlands, to further support the adoption of electric vehicles, the utilization fee was reduced from €22.5 to €20 as of January 1, 2024.

In Southeast Asian countries such as Indonesia, Malaysia, the Philippines, and Thailand, consumers are exempt from both utilization fees and customs duties on imported electric vehicles. In other words, no additional charges are imposed, making electric vehicles more accessible.

To conclude, while many countries are actively promoting green energy by encouraging consumers to switch to electric vehicles, Uzbekistan is introducing various tariff and non-tariff barriers that restrict imports. Given the country’s already worsening air quality, such policies could further exacerbate environmental challenges.