Over the last years Kyrgyzstan has put efforts towards transitioning into a greener economy and seizing opportunities for sustainable economic growth. Although this is outlined in the country’s National development agendas, it still remains a challenge.

However, recent research suggests that sustained economic growth can only be achieved by investing in low-carbon and less-polluting models of development. Among them is the notion of the ‘Inclusive Green Economy’, which refers to a resource-efficient, non-polluting, equitable model of economic growth.

Today, Green Economy Modelling remains the best hope for lifting Kyrgyzstan out of poverty and delivering long-term sustainable development for the country.

What is the Inclusive Green Economy?

The green economy concept and principles are comprehensive, touch upon various development targets and imply leveraging the full potential of an economy. An inclusive green economy is one that delivers on the interconnected economic, social and environmental commitments reflected the Sustainable Development Goals (SDGs) and the Paris Agreement on climate change.

An inclusive green economy therefore considers a whole-of-society approach in devising the drivers of economic growth. It focuses on sustainable means of production as well as sustainable and responsible consumption of economic goods and services. This maximizes resource efficiency and the reduction of waste at all stages of the economy.

In the context of many countries, including Kyrgyzstan, these sectors include renewable energy, low-carbon transport, energy-efficient buildings, clean technologies, improved waste management, improved freshwater provision, sustainable agriculture, forestry, and fisheries, as well as eco-tourism. These investments are driven by, or supported by, national policy reforms and the development of international policy and market infrastructure.

Modelling of green economy can shed light on expected and unexpected outcomes of investments, including both synergies and side effect. It reduces uncertainty and risks for policymakers and investors. On the other hand, efforts to model, understand and interpret the Green Economy, remains fragile in the context of many developing countries, including Kyrgyzstan, which is why improving these connections is a matter of priority.

What is Green Economy Modeling?

Green Economy Modelling (GEM) is a powerful tool that first establishes a relationship between policy targets and relevant economic, environmental, and social dimensions. Secondly, it projects the impacts of policy measures in advance, across a variety of indicators that reflect different sectors, economic actors, dimensions of development. Thirdly, it analyses the effects of existing policies and identifies synergies and cross-sectoral impacts among policy choices. GEM is essential for advancing the transition towards an Inclusive Green Economy, while delivering on the Sustainable Development Goals. The development of GEM modelling tools and reliable metrics and measurements can enable countries to measure their progress against national and international development targets, to anticipate the future impacts of policies and, thereafter, to guide and inform Green Economy policymaking

Opportunities for inclusive green economy in Kyrgyzstan

Natural capital is a critical economic asset and a source of public benefits, especially for rural communities whose livelihoods depend on natural resources. Transitioning to an inclusive green economy, therefore, creates huge opportunities for investment and job creation and has the potential to leapfrog Kyrgyzstan to the level of global peers, in terms of responding to climate change.

We are now looking at the new strategy on GE development based on the best experiences and lessons learnt from other countries. This may include increased ambition, as well as more emphasis on synergies to create across sectors, policy and investment. Further, it may extend to an investment plan, which considers sustainability metrics as criteria for investment prioritization.

This October, the current activities and initiatives of the MoEC about the GE promotion in Kyrgyzstan were discussed with the First Deputy Minister as there is a general intention to use GEM to simulate a series of scenarios, for several sectors, to estimate the social, economic, and environmental outcomes of investments, and to assess synergies across sectors. GEM will be used to inform the preparation of the updated GE Program.

What is being done & how it will benefit country’s transition to a GE?

In Kyrgyzstan, UNDP and GIZ related projects are working to offer an open and transparent process to inform policymaking, using a multi-stakeholder and co-creation approach. Training is also provided to ensure that local capacity is created, to support the government in the medium and longer term. Developing GEM is going to include informative events, training sessions for the GEM modelers, and workshops on the well-being economy (on concepts and modelling approaches).

The informative events are meant to raise awareness about the Green Economy and methods and models to assess it; training sessions are organized for government officials as well for interested experts in academia, to further customize and use the model to inform policymaking with a data-driven and science-based modeling approach; well-being economy workshops are offered to increase awareness on a new and comprehensive approach to development planning, one that puts people at the center.

The above activities are going to be the preparation for GEM institutionalization together with MoEC in the Kyrgyz Republic. This will bring enhanced capabilities to the government in policy formulation and evaluation (before implementation) as well as indicator and tools for monitoring and evaluation (after implementation). It will also allow MoEC to perform integrated policymaking, maximizing the benefits of public investment for the creation of a stronger and more resilient economy.

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The activities described in this article are taking place within the partnership of Kyrgyz-German-Swiss GIZ Program “Green Economy and Sustainable Private Sector Development” and UNDP activities under PAGE.