This paper analyses the climate friendliness of Uganda’s post-COVID-19 recovery strategy and, specifically, its alignment with the country’s targets in its Nationally Determined Contributions (NDCs). The recovery strategy has the potential to provide effective climate change response and meet the NDCs. However, there are several gaps related to the marginalisation of climate action in the economic recovery resource-allocation process, the ability of macroeconomic recovery strategies to advance a genuinely green and resilient economy, and limited fiscal space to invest in a climate-sensitive recovery. These gaps notwithstanding, the economic stimulus and growth strategy is an unparalleled opportunity to align COVID-19 recovery with environmental fiscal reform goals. For instance, the post-COVID draft NDC shows greater ambition through a higher emission-reduction target of 24.7% below the business-as-usual trajectory by 2030, up from the 22% of the 2015 NDC. Its mitigation component has also been broadened through the addition of transport, waste and industrial processes, and productive-use sectors. In the stimulus packages, there are several opportunities to align climate action with the NDC’s commitments.

These are: prioritising green enterprises and expanding green industries and access to markets by fostering inclusive green procurement for public bodies and supporting sustainable supply chains.

The paper concludes with policy recommendations on encouraging a robust economic recovery through actions that champion Uganda’s NDC commitments.