Four years ago, in May 2019, official launch of Climate Finance Center of the Kyrgyz Republic took place in Bishkek. Adilet Amantaev, CFC Director, talks about what results have been achieved during this time and what awaits our republic in the sphere of climate finance.

Adilet Kemelbekovich, how does Climate Finance Center help in developing strategic climate policy of Kyrgyzstan?

-  In addition to attracting funding for implementation of climate change projects and raising public awareness about problems of climate change our task is to assist in drafting national strategic documents in the sphere of climate change.

Our employees actively participate in interagency working groups where climate policy documents and plans for their implementation are drafted.

Couldn’t you tell us about key strategic policies that CFC helped formulate and implement?

-  Important climate policy documents have been developed, such as Nationally Determined Contribution (NDC), National Adaptation Plan (NAP) and 2050 Carbon-Neutral Transition Concept (CNTC). They aim at mitigating effects of climate change and adapt to them in various sectors of economy and society. CFC had actively participated in activities of interagency working groups and helped in formulating NAP projects developed for 4 sectors: Disaster Risk Reduction, Healthcare, Biodiversity Conservation, Agriculture and 3 southern regions of the Kyrgyz Republic. As a part of NDC, plans for its implementation have been developed for mitigation in 5 sectors: Energy, Transport, Agriculture, Forestry and other types of Land use, Waste; on adaptation in 8 sectors: Water Resources, Agriculture, Energy, Disaster Risk Reduction, Transport Infrastructure, Forest and Biodiversity, Climate Resilient Areas and Green Cities, Healthcare. According to CNTV, mitigation plans have been developed for 6 key sectors and adaptation plans for 8 sectors. In addition, CFC has updated Climate Investment Program (CIP), which identifies 11 key areas for climate policy implementation and includes a portfolio of 24 project ideas and concepts.

Up to the moment, the first Climate Finance Concept has been prepared, which defines main priority sectors, areas, as well as innovative tools for attracting climate finance.

We would like to note that all above stated documents and processes were implemented within the framework of cooperation with UNDP.

What are the main sources of funding and investment that CFC has successfully attracted?

We work with various international financial institutions, climate and environmental funds and international organizations to attract financial resources for climate projects’ implementation. Main sources of financing: funds from UN Green Climate Fund (GCF), Asian Development Bank, World Bank, European Bank for Reconstruction and Development, UN Development Program, Korean International Cooperation Agency, German Society for International Cooperation, etc.

Сurrently we have 4 projects, funded by GCF jointly with the following international financial institutions:

In addition, grant funds totaling 4.3 million US dollars were received through Green Climate Fund's readiness program for capacity building and institutionalization. CFC continues attracting international resources and coordinate efforts to implement strategic climate projects, ensuring sustainable development and adaptation to climate change in the Kyrgyz Republic.

Adilet Kemelbekovich, how CFC contributes to improving access to funds from Green Climate Fund and other climate funds?

- CFC actively assists various organizations in obtaining funding from international climate funds, including Green Climate Fund. For example, advising national organizations on obtaining accreditation. Thanks to their joint work, ARIS (Community Development and Investment Agency) received accreditation from GCF in March 2024. Today, ARIS is the first and only accredited organization in Central Asia. ARIS can directly apply to GCF for project funding, meaning our country has direct access to Green Climate Fund resources after receiving accreditation. To date, consultations are also being held with national commercial banks on accreditation obtaining issues in GCF.

It should be noted that CFC has submitted several important project concepts together with our partners to various climate funds for consideration, including GCF.

These are as follows:

• energy efficiency and green heating project in Bishkek amounting 50 million US dollars;

• improving climate-resilient food security for farms in Batken Region through integrated drought risk management amounting 50 million US dollars;

• reduction of greenhouse gas emissions in residential sector of the Kyrgyz Republic in the amount of 10 million euros;

• improvement of air quality in the Kyrgyz Republic in the amount of 10 million US dollars;

• reducing risks of low-carbon investments in public buildings in the Kyrgyz Republic 50 million US dollars;

• reducing risks and scaling up investments in decentralized climate-smart wastewater treatment systems in Issyk-Kul Region of the Kyrgyz Republic in the amount of 25 million US dollars.

What main challenges CFC faces in attracting climate finance and implementing projects?

- Process of attracting funds from climate funds is agelong and complicated, accompanied with corresponding requirements and criteria for selecting projects, it requires multiple stages of verification and approval of application by international banks and climate funds. we can note the lack of data and information for project development, lack of necessary skills and experience to prepare competitive applications among internal hindrances.

What measures does CFC take to ensure effective achievement of its goals?

- It is necessary to take measures to strengthen institutional capacity and improve coordination among all actors on attracting climate finance to overcome these challenges.

In this regard, CFC has organized a series of workshops with participation of government agencies aimed at collecting and developing project ideas to improve coordination with government agencies. More than 80 ideas were collected as a result of this work, among which 24 high-priority ideas were selected for further development of project concepts. A database of climate projects has been established. This database includes information on current and planned projects, allowing for better management and monitoring.

CFC has also begun active meetings and discussions with representatives of private sector to attract their interest and participation in climate projects.

These measures allow CFC to improve efficiency of its climate project and finance management system, as well as improve coordination in attracting climate finance.

What steps does CFC plan to take to strengthen its functions and influence in the sphere of climate finance and project implementation?

- First of all, this is training on climate change issues, as well as training of specialists in the development, receipt, organization and control of projects. To this end, CFC has developed a Concept for Climate Finance Stakeholder Capacity Building Program. Its implementation will significantly improve potential for mobilizing financial resources for projects implementation in the Kyrgyz Republic.

In addition, as noted above, CFC has developed a portfolio of 24 selected project ideas for further promotion to climate funds. We will strengthen cooperation with donors and international partners to ensure sustainable development and effective use of climate finance in the Kyrgyz Republic.

What role does the private sector play in CFC's climate finance strategy?

- Private sector plays a key role in CFC's strategy for attracting climate finance, as some of the projects being developed are aimed at attracting private sector resources. At the same time, we plan training events for business and cooperate with government agencies to create a favorable regulatory environment

 How CFC works with private investors to promote climate-resilient investments?

- Focus of development banks and climate funds is changing now from financing government projects to projects, involving private fund. In this regard, CFC is developing projects that are attractive, including for the private sector. Also, climate projects are being developed under public-private partnership mechanism to stimulate cooperation between government agencies and private companies.

What recommendations based on your experience would you make to strengthen mobilization of climate finance in Kyrgyzstan further?

- It is necessary to establish favorable institutional and regulatory conditions, actively involve all stakeholders in implementation of strategies and projects, develop innovative financial instruments and ensure transparency and efficiency of climate initiatives in Kyrgyzstan.