Uganda has built the elements of a green finance framework since 2022, with a central bank climate risk policy, an industry ESG framework for banks, carbon market regulations, a National Green Taxonomy launched in September 2025 and Bank of Uganda guidelines on climate-related financial risks. Agriculture is a covered sector in the taxonomy, but no green bond had been issued and no data on green lending to agriculture had been published by October 2026.
7.1
What is in force
The Bank of Uganda adopted a Climate Change Risk Policy in 2022 and joined the Network for Greening the Financial System in March 20231. With the Uganda Bankers' Association it launched an Industry ESG Framework for banks on 4 June 20242. In 2025 it issued Guidelines for the Management of Climate-related Financial Risks, which the NGFS dates to October 2025 and the Governor to December 2025, together with guidance on IFRS S1 and S2, whose full adoption is expected by January 202813.
The Ministry of Finance launched the National Green Taxonomy on 11 September 20254. The taxonomy classifies activities by their contribution to six environmental objectives, applies do-no-significant-harm and social safeguard criteria and covers agriculture, energy, transport, construction, water and sanitation, waste and forestry5. The Ministry also approved a National Climate Finance Vehicle on 7 May 2025 and issued a National Climate Finance Strategy for 2025–20306. No green bond had been issued in Uganda by October 2026, and the Ministry was preparing a sovereign green bond framework73. The Climate Change Mechanisms Regulations of 2025 set a fee of 10% of each internationally transferred mitigation outcome8.
Building the green-finance framework
2017
Green Growth Development Strategy 2017/18–2030/319Strategy
National Climate Change ActAct No. 22 of 2021, Cap. 182Assent 14 Aug 2021, in force 3 Jan 2022 (LEAP consolidated text)
The Act gives the force of law to the UN Framework Convention on Climate Change, the Kyoto Protocol and the Paris Agreement, and provides for response measures, participation in climate change mechanisms, measurement and reporting of emissions and climate finance1011. The consolidated text on the UNEP LEAP portal records commencement on 3 January 202212. The Climate Change Mechanisms Regulations, made on 7 November 2024 and published as SI 2025 No. 9 on 24 January 2025, govern carbon projects and set a corresponding-adjustment fee of 10% of each internationally transferred mitigation outcome8.
Recent changes: National Climate Change (Climate Change Mechanisms) Regulations 2025, SI 2025 No. 98.
National Environment ActAct No. 5 of 2019, Cap. 181Assent 24 Feb 2019
The Act continues the National Environment Management Authority and covers climate change, hazardous chemicals, biodiversity offsets, strategic environmental assessment and plastics, and creates an Environmental Protection Force1314.
National Forestry and Tree Planting ActAct No. 8 of 2003, Cap. 160Assent 17 Jun 2003 (Bill Tracker), Gazette No. 37 of 8 Aug 2003, amending Bill assented 1 Aug 2025
The Act provides for forest reserves, the sustainable use of forests and the promotion of tree planting, and established the National Forestry Authority1516. An amending Bill under RAPEX was passed on 23 October 2024 and assented to on 1 August 2025 according to the Bill Tracker17.
National Climate Change Policy and National Adaptation Plan for the Agricultural SectorPolicy (2015) and MAAIF plan (November 2018)2015 and 2018
The National Climate Change Policy aims to ensure that all stakeholders address climate change and its causes while promoting sustainable development and a green economy20. Its costed implementation strategy amounts to about US$3.9 billion over 15 years21. The agricultural adaptation plan of November 2018 covers climate-resilient crops, livestock and fisheries, climate information and early warning, and is costed at about US$522 million to 20302223.
Uganda Green Growth Development Strategy 2017/18–2030/31Government strategy2017
The strategy seeks inclusive low-emission growth through five catalytic investment areas, namely agriculture, natural capital management, green cities, transport and energy9.
National Green TaxonomyMinistry of Finance, Planning and Economic Development, with the Ministry of Water and EnvironmentLaunched 11 Sep 2025
The taxonomy classifies economic activities that contribute substantially to climate change mitigation, adaptation and four other environmental objectives, subject to do-no-significant-harm and minimum social safeguards criteria5. It covers agriculture, energy, transport, construction, water and sanitation, waste management and forestry, and is intended for banking, capital markets and public budgeting5. The Ministry of Finance launched it on 11 September 20254.
Guidelines for the Management of Climate-related Financial RisksBank of Uganda guidelines for supervised institutionsIssued 2025 (October per NGFS, December per the Governor)
The Bank of Uganda issued Guidelines for the Management of Climate-related Financial Risks in 2025, which the NGFS dates to October 2025 and the Governor to December 2025, together with guidance on IFRS S1 and S2, whose full adoption is expected by January 202813. The Bank has had a Climate Change Risk Policy since 2022 and joined the NGFS in March 20231. The guidelines document itself could not be opened, so its effective date is not given here.
Guidelines for the Management of Climate-related Financial Risks
Bank of Uganda
October or December 2025
Issued, IFRS S1 and S2 adoption by January 2028
Sovereign green bond framework
Ministry of Finance
Workshop May 2026
In preparation, no green bond issued
Source: NGFS · BIS / BoU · MWE · MoFPED · GGGI — The NGFS dates the Bank of Uganda guidelines to October 2025 and the Governor to December 2025.
Cost of the updated NDC to 2030
US$ billion, unconditional and conditional, NDC of September 2022
Component
Unconditional (domestic) (US$ bn)
Conditional on international support (US$ bn)
Adaptation
2.5
15.2
Mitigation
1.6
8.7
Source: MWE — Total cost US$28.1 billion including US$0.1 billion of cross-cutting measures, of which US$4.1 billion domestic. The National Climate Finance Strategy 2025–2030 uses the same total6.
Where the NDC cuts emissions
Mitigation contribution by sector in 2030, Mt CO2-equivalent below business as usual
Sector
Reduction in 2030 (Mt CO2e)
Agriculture, forestry and land use
30.4
Transport
2.78
Energy (excluding transport)
2.34
Waste
1.1
Industrial processes
0.14
Source: MWE — The full target of 36.75 Mt CO2-equivalent equals 24.7% of business-as-usual emissions in 2030, of which 5.9 percentage points unconditional and 18.8 conditional. Agriculture, forestry and land use deliver 82.7%.
Green Climate Fund projects related to agriculture
GCF financing, US$ million, single-country and multi-country projects that include Uganda
Project
GCF financing (US$ m)
FP269 Dairy (4 countries, 2025)
150
FP293 Cocoa and coffee (10 countries, 2026)
56
FP280 REDD+ payments (Uganda, 2025)
31
FP078 Resilient agriculture fund (5 countries, 2018)
26
FP034 Wetlands (Uganda, 2016)
24.1
Source: GCF — Multi-country amounts are not attributed to Uganda. The GCF country page lists 21 projects for Uganda with US$235 million of financing in October 2026.
Green Climate Fund projects related to agriculture
Project
Entity
Countries
Approved
GCF amount (US$ m)
FP034 Resilient communities and wetlands
UNDP
Uganda
15 Dec 2016
24.1
FP078 Acumen Resilient Agriculture Fund
Acumen
5 countries
1 Mar 2018
26.0
FP269 DaIMA dairy programme
IFAD
4 countries
3 Jul 2025
150.0
FP280 REDD+ results-based payments 2016–2017
FAO
Uganda
30 Oct 2025
31.0
FP293 Food Securities Fund, cocoa and coffee
Clarmondial
10 countries
28 Mar 2026
56.0
Source: GCF — Amounts are GCF financing for the whole project, including other countries for multi-country projects.
7.2
What it means for agricultural lenders
Agriculture is a taxonomy sector
The National Green Taxonomy covers agricultural activities, which gives lenders a common basis to label and report farm loans that contribute to mitigation or adaptation5.
Climate risk becomes a supervisory topic
The 2025 guidelines on climate-related financial risks and the planned adoption of IFRS S1 and S2 by January 2028 require supervised institutions to address climate risk, which matters for rain-fed farm portfolios3.
Climate funds with an agricultural focus
The Green Climate Fund listed 21 projects for Uganda worth US$235 million in October 2026, including the multi-country dairy programme FP269 with a Green Dairy Financing Facility3025.
Large financing needs
The updated NDC costs adaptation at US$17.7 billion and mitigation at US$10.3 billion to 2030, 85% or more of it conditional on international support24.
AI-assisted content, human-reviewed: This page was generated with the assistance of artificial intelligence and reviewed by a human editor. (last review: October 2026) Despite review, errors or outdated values may remain; please verify critical figures against the linked primary sources before relying on them. Nothing here is investment, legal or financial advice.
