WASHINGTON, June 9, 2026 - The World Bank Group today approved the Kyrgyz Republic Innovative Finance for Resilient and Sustainable Energy Transition Project (iFIRST). This initiative is designed to help the country use electricity more efficiently, support reforms in the energy sector, and reduce emissions.
The $50 million project financing will be provided via results-based finance, with $35 million in firm commitments and a possible additional $15 million, contingent on the program delivering the agreed results. The funding is backed by the Transformative Carbon Asset Facility (TCAF), a World Bank-administered trust fund that supports countries' efforts to implement market-based carbon pricing.
Low electricity tariffs in the Kyrgyz Republic encourage increased electricity usage while limiting revenue for the power sector and constraining investment in maintenance, service improvements, and expansion. As the government gradually moves tariffs closer to cost recovery to ensure financial sustainability, these reforms are combined with strong social protection measures, including lifeline tariffs, to support vulnerable households.
"Reliable and affordable energy is essential for economic growth and job creation," said Hugh Riddell, World Bank Group Country Manager for the Kyrgyz Republic. "This iFIRST project supports the Kyrgyz Republic's efforts to strengthen the financial sustainability of the energy sector, encourage more efficient use of electricity, and unlock new sources of financing. It also helps build the systems needed for the country to participate in international carbon markets."
iFIRST is the first climate and carbon finance operation in the Kyrgyz Republic under the Paris Agreement and the World Bank's second policy crediting program globally.
Under the iFIRST project, the Kyrgyz Republic will receive payments when emissions reductions linked to electricity subsidy reforms are independently verified, creating incentives for energy conservation. Some of those reductions will also be transferred internationally under the Paris Agreement. The project is expected to help generate around four million tons of emissions reductions, which is equivalent to taking roughly 900,000 cars off the road for a year.
The iFIRST project will be implemented through 2031 by the Ministry of Energy of the Kyrgyz Republic in coordination with other relevant stakeholders.
TCAF is supported by Canada, Germany, Norway, Spain, Sweden, Switzerland, the United Kingdom, and the Climate Cent Foundation.
