On September 17, 2024, the Ministry of Finance of the Kyrgyz Republic and the World Bank launched the Green Budget Tagging Guidelines: A Conceptual Approach. This milestone underscores the country’s commitment to integrating climate and environmental considerations in the national budget process and to aligning resources to implement the Nationally Determined Contributions (NDCs) to reduce greenhouse gases and other environmental commitments.
Developed through extensive collaboration and consultations with key ministries and stakeholders convened through a working group led by the Ministry of Finance, these guidelines provide a framework for tracking and classifying budget expenditures related to climate change adaptation, mitigation, and other environmental activities.
The Guidelines establish a comprehensive framework for implementing green budget expenditure tagging in the Kyrgyz Republic, aligning with the country's fiscal policy directions for 2024–2028 and supplementing the Interim Guidelines issued pursuant to Ministry of Finance Order No. 90, dated June 13, 2024.
This framework underscores the critical role of green budget tagging as a fundamental aspect of budget policy. This aligns with international best practices and will enable the government to better identify gaps in climate-related spending where there is a need to focus mobilization efforts for green finance. This framework will also enhance the effectiveness of our climate and environmental measures by incentivizing ministries to integrate them into their plans and budgets.
The launch event included discussions on the Guidelines, their application, and the conceptual approach and methodology underpinning them. The event also focused on a joint vision to support the country in institutionalizing and implementing the green budget tagging system and on opportunities to further mobilize resources to meet the country's international climate and environmental commitments.
This launch is part of the World Bank’s ongoing technical assistance to the Kyrgyz Republic, funded by the Climate Support Facility and coordinated with the NDC Partnership.
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