Kyrgyzstan could receive up to $11.5 million through a carbon financing project

A new carbon project to support the transition to sustainable energy will soon be signed in Kyrgyzstan. This was announced by Energy Minister Taalaibek Ibraev at a meeting with the head of the World Bank's representative office in the country.

The project is being implemented by the World Bank in conjunction with the Carbon Asset Transformation Fund (TCAF) as part of the Transition to Sustainable Energy through Innovative Financing (iFIRST) initiative. It was proposed by the Ministry of Energy and is one of the first in the country related to carbon financing.

The main objective of the project is to support reforms in the energy sector and reduce greenhouse gas emissions. A distinctive feature is the mechanism of payment for results achieved: emission reductions are recorded and verified by special systems, and only after confirmation are financial payments made to the country.

Under the initiative, Kyrgyzstan can receive:

• up to $4.5 million in climate finance for verified emissions reductions;
• the opportunity to attract additional financing of up to $5.5 million through the carbon market;
• technical support and a grant of up to $1.5 million to strengthen institutional capacity and establish an emissions accounting system.

The project also provides for the launch of a national carbon registry, the development of a monitoring system and the strengthening of the country's climate policy. The project is expected to help Kyrgyzstan meet its climate commitments under the Paris Agreement.