The Republic of Uzbekistan Ministry of Economy and Finance, Ministry of Energy, and Agency for Strategic Reforms Innovative Carbon Resource Application for Energy Transition Project (P180432) ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) 19 June 2023 Negotiated ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Republic of Uzbekistan (“Recipient”) will implement the Innovative Carbon Resource Application for Energy Transition Project (“Project”), with the involvement of the Ministry of Economy and Finance (“MoEF”), the Ministry of Energy (“MoE”), the Agency for Strategic Reforms (“ASR”), the Ministry of Investment, Industry and Trade (“MIIT”) and Uzhydromet (“UHM”) as set out in the Emission Reduction Payment Agreement (signatories – MoEF and MoE) (“ERPA”), Host Country Agreement (signatory - MoEF) ("HCA”), and Mitigation Outcome Purchase Agreement (signatories – MoEF and MoE) ("MOPA”) (collectively referred to as “Legal Agreements”). The International Bank for Reconstruction and Development (the “World Bank”), acting as the Trustee (the “Trustee”) of the Transformative Carbon Asset Facility, has agreed to provide financing for the Project, as set out in the referred Legal Agreements. 2. The Recipient shall ensure that the Project is carried out in accordance with the Environmental and Social Standards (“ESSs”) and this Environmental and Social Commitment Plan (“ESCP”), in a manner acceptable to the Trustee. The ESCP is a part of the Legal Agreements. Unless otherwise defined in this ESCP, capitalized terms used in this ESCP have the meanings ascribed to them in the Legal Agreements. 3. Without limitation to the foregoing, this ESCP sets out material measures and actions that the Recipient shall carry out or cause to be carried out, including, as applicable, the timeframes of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and grievance management. The ESCP also sets out the environmental and social (“E&S”) instruments that shall be adopted and implemented under the Project, all of which shall be subject to prior consultation and disclosure, consistent with the ESS, and in form and substance, and in a manner acceptable to the Trustee. Once adopted, said E&S instruments may be revised from time to time with prior written agreement by the Trustee. 4. As agreed by the Trustee and the Recipient, this ESCP will be revised from time to time if necessary, during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to Project performance. In such circumstances, the Recipient and the Trustee, through the Project Implementation Unit under MoEF (PIU), agree to update the ESCP to reflect these changes through an exchange of letters signed between the Trustee and the Recipient, represented by the Deputy Minister of MoEF. The Recipient shall promptly disclose the updated ESCP. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) –Innovative Carbon Resource Application For Energy Transition Project (P180432) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY MONITORING AND REPORTING A REGULAR REPORTING Prepare and submit to the Trustee regular monitoring reports on the environmental, As provided under the ERPA and the MoEF social, health and safety (ESHS) performance of the Project, including but not limited to the MOPA, as a separate annex to the implementation of the ESCP, status of preparation and implementation of E&S instruments Annual ER Report, no later than sixty required under the ESCP, stakeholder engagement activities, and functioning of the (60) calendar days after the end of grievance mechanism(s). each Reporting Year, commencing from the date of the execution of the ERPA and, where applicable, the MOPA. B INCIDENTS AND ACCIDENTS Promptly notify the Trustee of any incident or accident related to the Project which has, or Not the Trustee no later than 48 hours MoEF is likely to have, a significant adverse effect on the environment, the affected after learning of the incident or communities, the public or workers, including, inter alia, cases of sexual exploitation and accident. abuse (SEA), sexual harassment (SH), and accidents that result in death, serious or multiple injury. Provide sufficient detail regarding the scope, severity, and possible causes of the Provide subsequent report to the incident or accident, indicating immediate measures taken or that are planned to be taken Trustee within a timeframe acceptable to address it, and any information provided by any contractor and/or supervising firm, as to the Trustee appropriate. Subsequently, at the Trustee’s request, prepare a report on the incident or accident and propose any measures to address it and prevent its recurrence. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE Establish and maintain a Program Implementing Unit (PIU) under MoEF with qualified staff Social Specialist of the PIU responsible MoEF, MoE and resources to support management of ESHS risks and impacts of the Project including a for social oversight shall be recruited social specialist for managing the planned communication campaign, and broader within six (6) months from the date of stakeholder engagement including a feedback mechanism. the execution of the ERPA and, where applicable, the MOPA. 3|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) –Innovative Carbon Resource Application For Energy Transition Project (P180432) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY Establish and maintain a PIU within six (6) months from the date of the execution of the ERPA and, where applicable, the MOPA, and thereafter maintain throughout Project implementation. 1.2 TECHNICAL ASSISTANCE Ensure that the consultancies, studies (including feasibility studies, if applicable), capacity Throughout the Project MoEF, MoE, ASR, MIIT, building, training, and any other technical assistance activities under the Project including, implementation. UHM inter alia the environmental and social instruments to be supported under the Project and associated technical assistance are carried out in accordance with terms of reference acceptable to the Trustee, that are consistent with the ESSs. Thereafter ensure that the outputs of such activities comply with the terms of reference. ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES Comply with all applicable provisions of Uzbekistan labor law and the World Bank’s ESS2 in Throughout the Project MoEF, MoE, ASR, MIIT, relation to labor and working conditions for workers involved in activities financed under implementation. UHM the Project. These Project workers include: a) Government staff assigned to the PIU. These staff will remain subject to the terms and conditions of their existing public sector arrangements; b) Consulting services staff (firms and individuals) to support the Project. Relevant labor management measures include the obligation to:  Ensure that Project workers, as are hired, promoted and their employment, where needed, terminated based on principles of non-discrimination and equal opportunity, no-harassment, and freedom of association; 4|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) –Innovative Carbon Resource Application For Energy Transition Project (P180432) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY  Ensure that all Project workers are provided with information and documentation that is clear and understandable regarding their terms and conditions of employment under national law, including, as applicable, through written contracts setting out their rights related to hours of work, wages, overtime, compensation and benefits, as well as written notice of termination of employment, and details of severance payments;  Adopt a code of conduct that sets out measures against practices related with sexual exploitation and abuse/sexual harassment (SEA/SH) in the workplace, including the dissemination of the referral services available in the country to respond to such behaviour;  Incorporate the relevant requirements above in the ESHS specifications of the procurement documents and contracts with consulting firms that engage workers in the implementation of the Project;  Report on compliance with these labor management procedures as part of the reports to be submitted under action 2.1 a) above. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS Establish, maintain and operate the existing Grievance Mechanism (GM) available for civil Establish grievance mechanism prior MoEF, MoE, ASR, MIIT, servants who are the direct workers in this Project to allow them to quickly inform to engaging Project workers and UHM management of labour related issues and raise workplace concerns and labour-related thereafter maintain and operate it matters without retaliation or favour. throughout Project implementation Report on the operation of the Project workers GM. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT This Standard is not relevant to this Project. ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 COMMUNITY HEALTH AND SAFETY Assess and manage specific risks and impacts to the community arising from Project Throughout Project implementation, MoEF and MoE activities resulting in tariff increases through adoption and implementation of improved documented as part of environmental and targeted social protections measures, including, inter alia, making information and social performance reporting available so those entitled can access benefits from social safety nets. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT This Standard is not relevant to this Project. 5|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) –Innovative Carbon Resource Application For Energy Transition Project (P180432) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES This Standard is not relevant to this Project. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES This Standard is not relevant to this Project. ESS 8: CULTURAL HERITAGE This Standard is not relevant to this Project. ESS 9: FINANCIAL INTERMEDIARIES This Standard is not relevant to this Project. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN PREPARATION AND IMPLEMENTATION Revise, disclose, adopt, and implement the Stakeholder Engagement Plan (SEP) for the Revise, redisclose and adopt the SEP MoEF, MoE Project, consistent with ESS10, which shall include measures to, inter alia, provide within six (6) months from the date of stakeholders with timely, relevant, understandable and accessible information, and consult the execution of the ERPA and, where with them in a culturally appropriate manner, which is free of manipulation, interference, applicable, the MOPA and thereafter coercion, discrimination and intimidation. implement the SEP throughout Project implementation. 10.2 PROJECT FEEDBACK AND GRIEVANCE MECHANISM Establish, publicize, maintain, and operate an accessible feedback and grievance Establish the grievance mechanism no MoEF, MoE mechanism, to receive and facilitate resolution of concerns and grievances in relation to later than six (6) months from the date the Project, promptly and effectively, in a transparent manner that is culturally appropriate of the execution of the ERPA and, and readily accessible to all Project-affected parties, at no cost and without retribution, where applicable, the MOPA, and including concerns and grievances filed anonymously, in a manner consistent with ESS10. thereafter maintain and operate the mechanism throughout Project The grievance mechanism shall be equipped to receive, register, and facilitate the implementation. resolution of SEA/SH complaints, including through the referral of survivors to relevant gender-based violence service providers, all in a safe, confidential, and survivor-centric manner. CAPACITY SUPPORT CS1 Provide training for PIU staff, stakeholders, communities, Project workers on: Throughout the Project MoEF, MoE  stakeholder mapping and engagement implementation  community health and safety. 6|Page