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Accessing and Using Green Finance in the Kyrgyz Republic

Evidence from a Household Survey

image of Accessing and Using Green Finance in the Kyrgyz Republic

This report presents findings from a survey on green finance conducted among 1 000 households in the Kyrgyz Republic (Kyrgyzstan) in 2019. Although green finance is an emerging trend, knowledge about the appetite for green financial products and services in Kyrgyzstan is almost inexistent. The OECD prepared the household survey to close this gap in evidence. The research identified needs and demand from existing and potential clients of Kyrgyz financial institutions for financial instruments, including those that promote sustainable development. This will help commercial banks, policy makers and central bankers design more targeted interventions to increase access to and use of financial products and services, including green finance, in Kyrgyzstan.

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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.

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