The adoption of amendments to the Law of the Kyrgyz Republic “On Restriction of the Circulation of Polyethylene Bags and Plastic Products” (hereinafter – the Law) was the result of more than a year of joint work by the government, the business community, and experts. The issue, initiated by the International Business Council, was considered at a meeting of the Investment Council under the Cabinet of Ministers of the Kyrgyz Republic on December 19, 2023. Based on numerous consultations and analysis of international experience, balanced amendments were developed to ensure compliance with environmental standards while minimizing costs for business.

This outcome highlights how a consistent public-private dialogue can not only remove regulatory barriers but also create momentum for the development of an entire sector — in this case, the recycling industry. The example of amendments to the Law clearly demonstrates how a well-organized process of consultations and analysis can result in balanced environmental and economic policies. This experience also illustrates alignment with the priorities of sustainable development as set out in national strategic documents and the global UN Agenda on the Sustainable Development Goals (SDGs), especially SDG 9 (Industry, Innovation and Infrastructure) and SDG 12 (Responsible Consumption and Production).

General Information

The original version of the Law contained broad restrictions on the use of plastic packaging, including PET bottles, containers, coffee capsules, and other products. These measures were motivated by environmental safety objectives aimed at reducing the harmful impact of polymer materials on human health and the environment in the Kyrgyz Republic. However, in practice, they created significant risks for business, especially in the food industry and retail trade.

The International Business Council received numerous appeals from producers, importers, and recyclers expressing concern over regulatory uncertainty and the potential increase in production costs. The previously applicable provisions of the Law caused apprehension in the business community: lack of clarity in formulations, an extensive list of products subject to prohibition, and vague criteria for recyclability led to legal uncertainty. This particularly affected enterprises in the food industry, which rely on plastic packaging for product safety and logistics.

Amid growing international pressure regarding environmental protection and the transition to a circular economy, the Kyrgyz Republic faced the challenge of ensuring compliance with environmental commitments without placing an excessive burden on the real sector of the economy and consumers. A delicate balance between protecting the environment and supporting economic activity was required.

The Role of Public-Private Dialogue

At the meeting of the Investment Council on December 19, 2023, the draft amendments to the Law were presented by the International Business Council and the Ministry of Natural Resources, Ecology, and Technical Supervision of the Kyrgyz Republic. Together with the Secretariat of the Investment Council, the International Business Council, and members of Parliament, an in-depth analysis was carried out, and consultations were initiated with business representatives. This process became an example of an effective mechanism of public-private dialogue (PPD), through which it was possible to balance environmental policy and the interests of the private sector.

From an institutional perspective, this case demonstrates the maturity of the Investment Council mechanism: an initiative submitted by a business association (IBC) was considered at a high level, found resonance among competent authorities, and evolved into a platform for discussing and adjusting regulatory policy. The Secretariat of the Investment Council played a coordinating and facilitative role, ensuring that the interests of all stakeholders were considered – from recyclers and retailers to environmental experts and legislators.

International Practice and Compliance with the EAEU

Harmonizing national legislation with the technical regulations of the Eurasian Economic Union (EAEU) became a key driver of reform. In international practice, effective approaches typically prohibit only those types of plastics that cannot be recycled. This approach is already applied in EU countries, where the priority is to build a circular economy.

Following these examples, the Kyrgyz Republic excluded PET bottles and food packaging, which are actively collected and recycled domestically, from the list of banned items. A comparative analysis of the practices of the EU, the United Kingdom, South Korea, and Canada shows that most developed countries are gradually moving away from a complete ban on plastic in favor of the so-called “circularity approach”: permitting use subject to effective recycling and re-use. This approach allows production chains not to be destroyed but transformed towards greater sustainability.

It was also essential for the Kyrgyz Republic to eliminate the conflict with EAEU Technical Regulations, which did not envisage a complete ban on PET packaging. The adopted amendments removed this legal inconsistency, thereby reducing risks for cross-border trade and supplies.

Practical Effects for Business

The amendments provided:

• Clarity and predictability: The Law now clearly defines which products are prohibited and which are permitted. This removed the legal uncertainty that previously put PET bottles, food containers, and packaging used in retail and HoReCa at risk of being banned.
• Cost reduction: Previously, businesses faced the necessity to switch to more expensive alternatives — for example, paper bags that cost 8–10 times more than polyethylene ones. Thanks to the adopted amendments, entrepreneurs can avoid a sharp increase in production costs and, consequently, consumer prices.
• Support for the food and recycling industries: The new version of the Law prevents supply disruptions in the food industry and stimulates the growth of the recycling sector. The country already has at least 30 companies engaged in processing PET and other plastics into secondary raw materials, and now they gain a stable source of supply and market legitimacy.
• Alignment with EAEU norms: The Law removes contradictions with EAEU regulations, reducing the risk of customs rejections and facilitating export/import operations.

Conclusions and Next Steps

The experience of working on amendments to the Law of the Kyrgyz Republic “On Restriction of the Circulation of Polyethylene Bags and Plastic Products” demonstrates the effectiveness of the Investment Council as a platform for dialogue and the development of balanced solutions. As a result, the state obtained environmentally oriented regulations, while business gained a predictable environment and reduced administrative and financial burdens.

The next stage will be the development of recycling infrastructure, as well as the implementation of awareness-raising and incentive measures for producers and consumers of packaging.

It is recommended to further strengthen the institutional role of the Investment Council as a tool for regulatory impact assessment. Similar mechanisms (Regulatory Impact Analysis, RIA) have been successfully used in OECD and Central Asian countries. It would also be advisable to introduce a system for monitoring implementation and evaluating the effects of the reforms through indicators such as the growth in the share of recyclable packaging, reduction in business costs, and increased investment in recycling.

In the future, similar approaches can be applied in other areas — for example, regulating packaging in the pharmaceutical and electronics sectors, as well as in waste management. In this way, it will be possible to build a phased and systemic policy based on data and partnership.