ICA-Finance AS, in collaboration with FE «SANOAT ENERGETIKA GURUHI» LLC (SANEG) and VEMA S.A., is pioneering a joint decarbonization project in Uzbekistan, in line with the nation’s commitment to reduce methane emissions by 30% by 2030 as announced at COP-28 in Dubai. This initiative utilizes advanced Leak Detection and Repair (LDAR) technologies, which have significantly reduced methane emissions from Uzbekistan's upstream oil and gas infrastructure.

The first phase of the project has successfully completed a series of technical modernizations, with the project set to achieve emission reductions of over 83,000 tons of carbon dioxide equivalent (CO2e) annually—comparable to removing 20,000 cars from the roads. These enhancements were made possible through the deployment of modern emission detection, repair and analytical systems, including drones, thermal imaging technologies and geo-penetrating radars, across key operational areas in Karshi, Mubarek, and Andijan. In total approximately 200 leaks were identified and repaired.

_{ICA-Finance, Saneg, and Vema Carbon's joint advanced leak detection and repair (LDAR) project in Uzbekistan.}

The project's financing strategy is supported by the project partners, with an aim to secure returns through the sale of carbon offsets, specifically Upstream Emission Reductions (UERs), which are developed under the Clean Development Mechanism (CDM) methodologies under the European Fuel Quality Directive (FQD) Market. Plans are in place to expand these efforts with additional projects in Uzbekistan aimed at further reducing methane emissions, targeting flare sites, hydrocarbon storage tanks and other above-ground upstream oil and gas infrastructure.

With this joint success, SANEG, Uzbekistan’s largest private oil and gas company accounting for 80% of the country's oil production and a key participant in this initiative, has become the first company in Central Asia to register an emission reduction program with Germany’s Emissions Trading Authority (DEHSt) to cut methane emissions at its production assets. Following the enhancement of SANEG's infrastructure, the project partners have improved the monitoring and emission mitigation practices at the company's facilities and effectively facilitated local capacity building in climate mitigation practices. With licenses for 103 previously state-managed oilfields acquired in 2019, SANEG is a crucial player in spearheading innovative environmental management solutions within the nation's oil and gas production practices.

Together ICA-Finance, VEMA Carbon S.A. and SANEG aim to advance projects in Uzbekistan, targeting methane emission reductions from flare sites, storage tanks and above-ground upstream oil and gas infrastructure. This goal underscores the ongoing commitment of ICA-Finance AS and its partners to pioneering sustainable energy practices, setting new industry standards, and significantly contributing to global climate change mitigation goals.