Bishkek, May 13, 2026. /Kabar/. Kyrgyzstan is implementing its first carbon project in the energy sector, Ministry of Energy reports.
According to the ministry, official negotiations on the Innovative Financing for Sustainable Energy Transition (iFIRST) project took place today at the World Bank office in Bishkek.
Representatives of the Ministry of Energy and a World Bank expert group participated in the meeting. The parties discussed the legal agreements for the project, environmental and social obligations, financing mechanisms, as well as financial management and procurement issues.
According to Minister Taalaibek Ibraev, the project will attract climate finance and will be one of the first initiatives in the country to introduce carbon finance mechanisms. He noted that Kyrgyzstan will continue to work to ensure energy sustainability and reduce greenhouse gas emissions.
World Bank Country Manager for the Kyrgyz Republic Hugh Riddell emphasized that Kyrgyzstan is taking an important step toward implementing new climate finance mechanisms and integrating into the global carbon market. He noted that this is only the second time the project has been implemented globally, and Kyrgyzstan is one of the first countries to implement it.
The project is being implemented by the World Bank and the Carbon Asset Transformation Fund (TCAF) as part of the iFIRST initiative. Its primary objective is to support reforms in the energy sector and reduce greenhouse gas emissions. A key feature of the project is its results-based financing mechanism: payments will be made only after verified reductions in greenhouse gas emissions.
The total funding for the project has been increased to $50 million. Of this, $35 million will constitute the core financing, with an additional $15 million provided as additional option financing.
Furthermore, the project includes strengthening the institutional capacity of government agencies, creating a system for recording and monitoring greenhouse gas emissions, and launching a national registry of carbon units. This initiative is being implemented within the framework of Kyrgyzstan's commitments under the Paris Agreement, which are aimed at limiting global warming and reducing greenhouse gas emissions.
Following the meeting, Ministry of Energy and the World Bank signed protocol of negotiations on the project.