Sustainable Development of the Private Sector in Kyrgyzstan

Project term: 01.06.2024-30.11.2025

Although being a small emitter of greenhouse gases, Kyrgyzstan is particularly exposed to the impacts of climate change. Models show a trend of consistent warming. Kyrgyzstan is aware of the urgency to act: It has ratified the Paris Agreement, and the Nationally Determined Contribution establishes a climate change strategy for 2030.

To mitigate climate change and its risks, economies worldwide must go through a green transformation. The financial sector has enormous leverage in this transformation: By channeling funds into climate-friendly investments, financial institutions can rapidly drive change. At the same time, a green portfolio reduces their risk of loan defaults due to extreme weather events.

However, the principles of Sustainable Finance in Kyrgyzstan are still at a nascent stage. Developing a consistent Sustainable Finance strategy on the regulatory level and ensuring the implementation is an extensive challenge for governmental institutions, the financial sector, and the entire private sector.

The project aims to support the implementation of sustainability principles and standards in the Kyrgyz financial sector and to train small and medium businesses in sustainable business practices. The holistic approach on the demand side and supply side promotes interaction between financial institutions and the target group, supports the understanding of the requirements and the needs on both sides.