The Kyrgyz Republic is a mountainous country in Central Asia with globally significant biodiversity and ecosystems that provide essential services for people and the economy. Despite covering only around 0.13% of the world's land area, the country is home to an estimated 2% of the world's known flora and 3% of its known fauna. Its mountain ecosystems, forests, grasslands, wetlands and freshwater systems support livelihoods, agriculture, water security and tourism while providing critical habitat for globally important species.
Kyrgyzstan's economy and rural communities depend heavily on natural resources and ecosystem services. At the same time, biodiversity is under increasing pressure from habitat degradation, unsustainable resource use, climate change and other drivers. Protecting and restoring these ecosystems requires adequate and sustainable financing, yet limited public resources and competing development priorities make it challenging to meet the country's biodiversity financing needs.
The Kyrgyz Republic joined UNDP BIOFIN in 2016 to strengthen the country's approach to financing biodiversity. Working with government institutions and national partners, UNDP BIOFIN has helped assess biodiversity-related policies, expenditure and financing needs and identify opportunities to mobilize and better use public, private and innovative finance for nature.
Building on this analytical foundation, UNDP BIOFIN is supporting the development and implementation of finance solutions that can strengthen protected areas and ecosystems, improve the effectiveness of public finance, engage the private sector and mobilize additional resources for the country's biodiversity priorities.
1. Digital Forest Revenue Management
BIOFIN modernized the Forest Management Automated Information System (AIS), transforming it into a comprehensive digital platform for forestry services. The upgraded system supports online payments, QR-code payments, automated billing, real-time financial reporting, and improved revenue management. During less than one year of pilot implementation, revenues increased by 27%, from KGS 52.8 million to KGS 66.9 million, demonstrating the financial impact of digital public finance.
2. Results-Based Budgeting for Biodiversity
BIOFIN is supporting the introduction of results-based budgeting within the forestry sector and protected area management. The approach links government expenditures to measurable biodiversity outcomes, improving budget planning, transparency, and the effectiveness of public investment in conservation.
3. Sustainable Forestry Finance
The modernization of forest finance goes beyond digital payments. BIOFIN has strengthened financial administration across the forestry sector by improving revenue collection, financial oversight, and transparency, helping ensure that forestry revenues are reinvested into sustainable forest management and biodiversity conservation.
4. Climate and Green Bonds
Kyrgyzstan has identified green and climate bonds as a priority finance solution to mobilize private and institutional investment for biodiversity and climate-related projects. This solution is included in the global BIOFIN Finance Solutions Catalogue and forms part of Kyrgyzstan's Biodiversity Finance Plan.
5. Green Microfinance
BIOFIN has also identified green microfinance as a finance solution for Kyrgyzstan. The approach integrates environmental criteria into lending, supporting sustainable agriculture, forestry, and nature-friendly businesses while expanding access to finance for local communities.
6. Forestry Taxes and Fees
Kyrgyzstan is exploring reforms to taxes, fees, and royalties in the forestry sector to improve cost recovery, generate additional public revenues, and strengthen incentives for sustainable forest management. This finance solution is included in the BIOFIN Finance Solutions Catalogue.
BIOFIN Kyrgyzstan has strengthened biodiversity finance by improving public financial management, introducing digital systems for forestry revenue collection, strengthening biodiversity budgeting, and developing the country's Biodiversity Finance Plan.
Digitalizing Forest Finance
BIOFIN supported the modernization of the Forest Management Automated Information System (AIS), transforming it into a comprehensive digital platform for forestry services. During less than one year of pilot implementation, revenues administered through the system increased by 27%, rising from KGS 52.8 million (US$0.6 million) in 2024 to KGS 66.9 million (US$0.8 million) in 2025. The upgraded platform improves payment collection, financial transparency, and revenue management, creating a stronger financial foundation for sustainable forest management.
Strengthening Biodiversity Budgeting
BIOFIN worked with the Ministry of Finance, the Department of Biodiversity Conservation and Protected Areas, and the Forest Service to introduce results-based budgeting for protected areas and forestry enterprises. The initiative also supported the development of medium-term strategic management plans, helping integrate biodiversity priorities into national budget planning and improve the efficiency and accountability of public spending.
Developing Kyrgyzstan's Biodiversity Finance Plan
BIOFIN completed the four core assessments—the Policy and Institutional Review (PIR), Biodiversity Expenditure Review (BER), Financial Needs Assessment (FNA), and Biodiversity Finance Plan (BFP)—providing the first comprehensive assessment of biodiversity finance in Kyrgyzstan. The process also established the Ministry of Finance as a key institution for integrating biodiversity into national planning and resource mobilization.
Promoting Sustainable Finance Solutions
The Biodiversity Finance Plan identified a portfolio of finance solutions to strengthen long-term conservation financing, including Payments for Ecosystem Services (PES), results-based budgeting, greener public procurement, sustainable forestry finance, and reforms to environmental revenue management. These measures are helping diversify funding sources while improving the effectiveness and sustainability of public investment in biodiversity.
