The Ministry of Economy and Commerce of the Kyrgyz Republic in partnership with the Union of Banks and the United Nations Development Programme (UNDP) is pleased to announce the results of the green finance market study. The results of the study will form an evidence base for the further development of green financing mechanisms in the country.
Green finance refers to financing projects with positive environmental and social impacts. These projects can include renewable energy, sustainable agriculture, energy-efficient buildings, waste management, etc. Mobilizing private finance for the green project is the key element of future environmental sustainability and resilience to climate change.
UNDP is one of the key partners of the government in implementing sustainable financing tools in Kyrgyzstan. In line with this strategic vision, UNDP has assisted in conducting a market assessment to evaluate the demand and supply for financing green projects in the Kyrgyz Republic. The assessment results reflect the current situation with green financing in the financial market, which will provide evidence for the development of green financing mechanisms.
"Development of green financing is an important area of activity for UNDP in Kyrgyzstan. UNDP sees huge potential for the development of green financing in Kyrgyzstan and is ready to contribute to the expansion of green finance in the country," said Monica Rijal, Deputy Resident Representative of UNDP in Kyrgyzstan.
The green finance market research marks a significant milestone in the Kyrgyz Republic's journey towards a more sustainable and inclusive economy. The study found that green finance is a narrow and under-explored topic in the Kyrgyz Republic, with little synergy in the country's strategic documents on transitioning to a green economy. The market capacity for green finance ranges from $150.6 million based on demand estimates, with the potential market capacity for the banking portfolio estimated at $415 million over the next five years. According to the respondents, the energy, transport, waste recycling, and agriculture sectors have the greatest potential for green financing. The full results of the study are available here.
The green finance market research was supported by the Global Partnership for Action on Green Economy (PAGE). This joint partnership of five UN agencies - UNDP, UNEP, ILO, UNIDO, and UNITAR - supports countries that want to pursue a more sustainable and inclusive growth path. PAGE has been supporting the Kyrgyz Republic since 2016, particularly in helping the government integrate the goals of an inclusive green economy (IGE) into national planning processes. The Ministry of Economy and Commerce of the Kyrgyz Republic is the beneficiary of this initiative and the main coordinating state body for implementing the program in the Kyrgyz Republic.
The UNDP will continue to work with the Ministry of Economy and Commerce and the Union of Banks further to develop the green finance market in the Kyrgyz Republic. This initiative will play a crucial role in promoting sustainable and inclusive economic growth, mitigating climate change, and achieving the Sustainable Development Goals.
This article is originally published in the Kyrgyz Republic.
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