Implications and policy recommendations

This chapter suggests interventions that can help improve access to and use of green financial products and services in the Kyrgyz Republic. Policy can play a role in making green investments more attractive. The central bank can consider mandatory requirements for financial institutions to improve their environmental governance, such as adequate pricing and disclosure of climate risks. Several other interventions are outlined, such as subsidies for climate and disaster risk insurance and information on green financial instruments within Kyrgyz financial literacy strategies. The chapter also presents options to provide long-term risk capital and alleviate collateral constraints through scaling up credit guarantees. This would especially help those household members that are individual entrepreneurs.