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 project to enhance the capacity of national financial institutions to access and deploy green and climate finance.
The initiative is aligned with the Kyrgyz Republic’s National Development Programme 2040 and Nationally Determined Contributions (NDCs) under the Paris Agreement, which aims to reduce greenhouse gas emissions by 43.62% by 2030.
“The launch of this project marks a shift from planning to execution. Our priority is to ensure that national institutions can independently manage, verify, and scale green and climate finance, aligned with Kyrgyzstan’s development goals,” said Kubat Kaseyinov, Deputy Minister of Natural Resources, Ecology and Technical Supervision.
With support from the Green Climate Fund (GCF), the initiative addresses key institutional and regulatory gaps in the financial sector. It will build foundations for a national verification and validation system for green finance in partnership with the relevant authorities and deliver targeted training for commercial banks and public institutions.
In parallel, the Project will develop recommendations on regulatory incentives and de-risking mechanisms to encourage financial institutions to expand their green lending portfolios. It will also support the operationalization of the recently adopted Green Taxonomy by providing practical guidance to regulators, tax and customs authorities, and the financial sector. To support investment mobilization, UNDP will assist national partners in preparing and submitting bankable project concepts to attract additional climate finance from the GCF and other sources.
The project will support national institutions including 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 other public and private institutions. It will also provide targeted technical assistance to selected commercial banks.
The project responds to key bottlenecks identified in prior assessments, including insufficient regulatory guidance, limited institutional capacity to track green investments, lack of incentives for financial institutions, and low engagement with international finance mechanisms.
