Kyrgyzstan Launches Green And Climate Finance Initiative With UNDP Support

(MENAFN- Trend News Agency) BISHKEK, Kyrgyzstan, June 18. The Ministry of Natural Resources, Ecology, and Technical Supervision of Kyrgyzstan, in cooperation with the United Nations Development Programme (UNDP), has launched a new project aimed at strengthening the capacity of national financial institutions to access and effectively utilize green and climate finance, Trend reports via the UNDP.

The initiative aligns with the country's National Development Program through 2040 and its commitments under the Paris Agreement, which are outlined in the Nationally Determined Contributions (NDCs) targeting a 43.62 percent reduction in greenhouse gas emissions by 2030.

“The launch of the project marks the transition from planning to practical implementation. Our goal is to ensure that national institutions can independently manage, verify, and scale up green and climate finance in line with Kyrgyzstan's development objectives,” said Asel Raimkulova, Deputy Minister of Natural Resources, Ecology and Technical Supervision.

The project, supported by the Green Climate Fund (GCF), aims to address key institutional and regulatory barriers in the financial sector. It will establish the foundations for a national green finance verification and validation system and deliver targeted capacity-building programs for commercial banks and public institutions.

In parallel, proposals will be developed to introduce regulatory incentives and risk mitigation mechanisms to boost green lending. The initiative will also support the practical implementation of the recently adopted Green Taxonomy, including the development of methodological guidelines for regulators, tax and customs services, and financial sector participants.

To attract additional climate finance from the GCF and other sources, UNDP will assist national partners in preparing and submitting economically sound project proposals.

“Financial institutions play a key role in translating climate goals into real investment projects. This project provides the tools and skills necessary to implement the Green Taxonomy, expand green lending, and improve access to international climate finance,” said Alexandra Solovieva, UNDP Resident Representative in Kyrgyzstan.

The initiative is strategically formulated to bolster pivotal national entities, encompassing the Ministry of Economy and Commerce, the National Bank, the Climate Finance Center, the State Development Bank, the Banking Association, alongside various public and private sector stakeholders. Designated financial institutions will be allocated specialized support services.

The initiative strategically addresses pre-existing constraints, including the deficiency of explicit regulatory frameworks, constrained institutional capability for monitoring eco-friendly investments, the nonexistence of motivational structures for financial institutions, and suboptimal interaction with global financing paradigms.

Oversight will be orchestrated by the Ministry of Natural Resources in conjunction with the Climate Finance Center to guarantee national stewardship, technical coherence, and seamless integration with Kyrgyzstan's overarching green economy transition frameworks.

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