Kyrgyzstan plans to support businesses that adopt ESG principles

The Jogorku Kenesh passed the “On Climate Action” bill in its second and third readings, establishing for the first time in Kyrgyzstan a legal framework to support businesses that implement ESG principles.

This refers to standards of environmental, social, and corporate responsibility—Environmental, Social, and Governance. The document explicitly states that the state intends to incentivize enterprises that implement ESG approaches and climate technologies.

According to the bill, the Cabinet of Ministers will be required to develop support programs for small and medium-sized businesses to implement climate technologies and ESG principles.

In addition, to promote ESG and low-carbon solutions, the following measures are proposed:

• tax incentives;
• subsidies;
• preferential and interest-free loans;
• grants;
• public-private partnership mechanisms.

The document also provides for the creation of support programs for startups in the field of climate technologies and ESG initiatives. It is planned to provide them with preferential or grant-based financing, as well as mentoring support.

A separate section addresses government procurement. The bill proposes implementing a procurement system focused on goods and services that align with ESG principles and low-carbon technologies.

The implementation of ESG is expected to increase Kyrgyzstan’s investment attractiveness and strengthen the confidence of international partners. The explanatory memorandum notes that global practice requires a shift “from formal compliance with environmental requirements to a comprehensive consideration of environmental, social, and governance factors.”

In addition, the authorities intend to train entrepreneurs in ESG practices. The law provides for programs on climate literacy, emissions reduction, the adoption of resource-saving technologies, and the development of sustainable business models.