Кыргызская фондовая биржа

The Kyrgyz Stock Exchange and LLC "DiG" signed the Agreement on joint activities on development of the market for trading in quotas for greenhouse gas emissions (CO2) emissions

On the 13th of November 2023, CJSC Kyrgyz Stock Exchange ( hereinafter referred to as KSE) and LLC "DiG" signed an agreement on joint activities on the development of the market for trading in greenhouse gas (CO2) emission quotas instead of receiving carbon credits for projects to reduce carbon emissions. Within the framework of the signed document, the parties intend to jointly promote both of these new innovative financial exchange instruments of the green economy in the financial market of Kyrgyzstan, ensuring the promotion of sustainable development of the economy.

A carbon credit is a way to receive favourable financing and offset the costs of companies that voluntarily reduce their carbon emissions (CO2) and stay within the government-regulated greenhouse gas emission limit.

Medet Nazaraliev, President of KSE:

"Carbogen or carbon credits are a special financial instrument that helps to compensate for environmental impacts. At the moment, this instrument is being actively developed all over the world, and neighbouring countries are already working on limiting greenhouse gas emissions. By 2050, our country aims to achieve carbon neutrality. This is a very ambitious task, and today we are only at the initial stage.Therefore, in order to develop this market, we need to create a system of regulation of entities, a national register of greenhouse gas emissions, as well as a system of regulatory quotas.For example, in terms of carbon dioxide emissions per capita in the countries of the Eurasian region in 2021, Kyrgyzstan ranked second to last at 1.4 tonnes per person per year, which is a good indicator, given that the global average emissions in 2021 were 4.7 tonnes per person per year".

Nurbek Elebayev, Chairman of the Strategic Planning and Corporate Development Committee, member of the KSE Board of Directors:

"Today, KSE and DG have a challenging task - to create an effective platform for trading greenhouse gas (CO2) emission quotas and thereby declare Kyrgyzstan's commitment to the principles of green economic development. Our neighbours and exchange partners in Russia and Kazakhstan have already made steady progress in this direction since 2012 and 2016. Therefore, we already have someone to learn from and borrow their experience. At the same time, it should be noted that today the sale of carbon credits and carbon credits are successfully used around the world and allow to finance and incentivise enterprises to reduce harmful CO2 emissions into the atmosphere. However, this requires coordinated work of the state and business. Therefore, we initiate voluntary procedures in this direction on the part of business. At the same time, we are ready to assist and support the government in developing a regulatory framework (NAP) and implementing joint measures with the financial market to encourage companies to reduce greenhouse gases. To date, under the signed agreement, both parties are ready to develop and launch the first joint project on the development of carbon credit in Kyrgyzstan, which will become a good example for domestic companies and investors. In the future, we intend to create a system of interested on the part of business to initiate projects of circulation on the exchange market as projects to reduce greenhouse gas emissions, as well as their financing by foreign financial companies".

Nurlan Shapanov, General Director of LLC "DiGi":

"Our company is a leader in digitalisation issues in the Republic. We pay special attention to the digitalisation of environmental projects: from drone-based accounting of red deer to satellite-based monitoring of junipers. Accounting for CO2 emissions and sequestration is also an important issue for us.It should be emphasised that it is the transparency that digitalisation brings that foreign investors and buyers of carbon credits want to see. Therefore, the more reliably we measure the impact of environmental projects on the nature of Kyrgyzstan, the more money we will be able to attract into our economy.Our company is very hopeful that co-operation with the Exchange will be fruitful and aimed at the interested involvement of the state in this process".

It should be noted that carbon credits are rapidly gaining popularity around the world and will soon be introduced everywhere. Such credits are used to implement climate projects aimed at preserving the environment.