The Ministry of Natural Resources, Ecology and Technical Supervision of the Kyrgyz Republic, in partnership with the United Nations Development Programme (UNDP), has launched a new initiative aimed at strengthening the country's ability to access and manage green and climate finance.
Supported by the Green Climate Fund (GCF), the project seeks to bridge institutional and regulatory gaps within Kyrgyzstan’s financial sector, enabling national institutions to effectively channel climate finance towards the country’s development and environmental goals. The initiative aligns with the Kyrgyz Republic’s National Development Programme 2040 and its Nationally Determined Contributions (NDCs) under the Paris Agreement, which target a 43.62% reduction in greenhouse gas emissions by 2030.
“The launch of this project marks a shift from planning to execution,” said Kubat Kaseyinov, Deputy Minister of Natural Resources, Ecology and Technical Supervision. “Our priority is to ensure that national institutions can independently manage, verify, and scale green and climate finance, aligned with Kyrgyzstan’s development goals.”
The project will focus on building a national system for verifying and validating green finance activities, while offering specialized training for both public institutions and commercial banks. This includes developing regulatory incentives and de-risking mechanisms to promote green lending practices.
In addition, the initiative will assist financial institutions in operationalizing Kyrgyzstan’s newly adopted Green Taxonomy, offering practical guidance to regulators, tax and customs authorities, and financial actors. UNDP will also support the preparation of bankable climate project proposals to attract financing from GCF and other international sources.
“Financial institutions play a central role in translating climate goals into investable actions,” said UNDP Resident Representative Alexandra Solovieva. “This project introduces the systems and skills needed to operationalize the Green Taxonomy, scale green lending, and improve access to international climate finance.”
Key national institutions involved in the project include the Ministry of Economy and Commerce, the National Bank of the Kyrgyz Republic, the Climate Finance Center, the State Development Bank, the Union of Banks, and selected commercial banks. The Climate Finance Center and the Ministry of Natural Resources will jointly coordinate the project, ensuring national ownership and integration with existing green economy strategies.
The project was designed in response to earlier assessments identifying major barriers to climate finance, including low institutional capacity, insufficient regulatory clarity, limited incentives for financial institutions, and under-engagement with international climate funding mechanisms.
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