A new carbon project is set to launch in Kyrgyzstan, which will facilitate the transition to sustainable energy. This was announced by the Minister of Energy, Talaybek Ibraev, during his meeting with Hugh Riddell, the head of the World Bank's office in the country. This project, which is being implemented with the support of the World Bank and the Carbon Asset Transformation Fund (TCAF), is part of an initiative called "Transition to Sustainable Energy through Innovative Financing" (iFIRST).
This initiative, proposed by the Ministry of Energy of Kyrgyzstan, represents one of the first projects in the country focused on financing carbon initiatives. The main goal of the project is to support reforms in the energy sector and reduce greenhouse gas emissions.
A key aspect of the project is the results-based payment mechanism. This means that the reduction of harmful emissions will be recorded, verified, and measured using special systems, and only after that will financial payments be made.
As part of this project, Kyrgyzstan will receive climate financing, the opportunity to attract additional funds through the carbon market, as well as technical support. In the event of successful verification of emission reductions, the country could receive up to 4.5 million USD, which will be directed towards fulfilling climate commitments under the Paris Agreement. Additionally, there is also the potential to attract an additional 5.5 million USD through carbon mechanisms.
Moreover, the project includes the provision of technical assistance in the form of a grant of up to 1.5 million USD, strengthening the institutional capacities of government agencies, creating systems for accounting and monitoring greenhouse gas emissions, and implementing a national registry of carbon units.
Experts emphasize that this initiative opens new horizons for reforming Kyrgyzstan's energy sector, contributes to improving climate policy, and attracting international financing. As a result, conditions will be created in the country for enhancing environmental sustainability, modernizing the energy sector, and reducing harmful greenhouse gas emissions into the atmosphere.
The post Climate financing will be provided for the first time in Kyrgyzstan as part of a new carbon project appeared first on K-News.
