{
  "id": 2349506,
  "title": "How Uzbekistan and Kyrgyzstan Could Unlock Circular Production",
  "url": "https://urgent.news/2026/08/19/how-uzbekistan-and-kyrgyzstan-could-unlock-circular-production",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-19T21:43:59.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/economy/articles/uzbekistan-kyrgyzstan-could-unlock-circular-214359661.html"
  },
  "original_language": "en",
  "account": "The textile and garment sectors have been crucial to the economic growth in Uzbekistan and Kyrgyzstan, but the need for sustainability is becoming more pressing. To assess their status, the United Nations Development Programme (UNDP) has released a report on circular textile value chains in both countries. Despite sharing some challenges regarding sustainability, the textile sector in Uzbekistan and Kyrgyzstan is quite different. Uzbekistan used to be a major cotton exporter but now has a vertically integrated cotton-textile cluster system. In contrast, Kyrgyzstan's garment manufacturing is more focused on small and medium-sized enterprises (SMEs) and is oriented towards regional markets.\n\nThe UNDP's Circular Transformation Index (CTI) was used to measure the degree of circular strategies being applied across various processes. The analysis found that awareness is growing, but most enterprises in both countries have only a low level of circularity. Uzbekistan's large companies and diversified manufacturers have higher CTI scores, while Kyrgyzstan's SMEs engaged only in garment production scored low on the index. Energy efficiency is the most widely adopted circular practice, with firms using LED lighting and energy-saving equipment for cost reduction. However, waste management and sourcing are the weakest links in their circular practices.\n\nProcurement limitations and the lack of local supplier standards make obtaining sustainable materials difficult in Kyrgyzstan, while Uzbekistan has higher engagement with certified sourcing due to larger export-driven firms preparing for international standards. Sufficient development of traceability practices is lacking in both countries to determine whether textile waste is recycled or put to productive use. Digitalization, such as traceability and digital product passports, is identified as a top priority for adopting circular practices. The report recommends systemic approaches, including regulatory reform, financial incentives, capacity building, and cross-border collaboration.\n\nTo unlock circular potential in Uzbekistan and Kyrgyzstan, the UNDP suggests developing a circular economy framework, creating financial incentives for recycling technologies, renewable energy, and resource-efficient equipment. Infrastructure and digital systems for handling textile waste should also be invested in, along with targeted training programs to address the capacity and knowledge gap on resource-efficient production, sustainable sourcing, and circular design. Collaboration between Uzbekistan and Kyrgyzstan can help accelerate learning, build scalable models, and strengthen regional production.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}