The Role of Business in Combating Climate Change in the Kyrgyz Republic

Introduction

Climate change poses a serious threat to sustainable development in the Kyrgyz Republic, where a significant portion of the economy depends on natural resources and sectors vulnerable to weather variability. Rising temperatures, shifts in precipitation patterns, and an increase in extreme weather events negatively impact agriculture, energy, and water resources, creating new challenges for the private sector. Businesses have emerged as key players in mitigating and adapting to these evolving climatic conditions.

1. The Impact of Climate Change on the Economy and Business

The Kyrgyz Republic is already experiencing the consequences of climate change, reflected in several key areas:

Agriculture: Unpredictable yields and increasing frequency of droughts, floods, and hailstorms threaten food security and escalate financial risks for agribusiness, creating volatile conditions for investment.

Water Resources: Vital to the economy, especially for irrigation and hydropower, water resources are strained due to the shrinking glaciers, the primary source of freshwater. This exacerbates risks for businesses in the energy and agricultural sectors.

Logistics and Infrastructure: Extreme weather events damage roads and infrastructure, causing delivery delays and increasing costs for companies.

Consequently, businesses in the Kyrgyz Republic must incorporate climate risks into their operational activities and investment strategies.

2. Adaptation Measures and Business Strategies

For the private sector, climate change presents not only risks but also opportunities for growth through innovation and sustainable practices. Key focus areas include:

Investments in Sustainable Agriculture: Large companies and farms are adopting conservation agriculture techniques, such as minimal soil disturbance and the use of organic fertilizers, to enhance resilience against extreme weather.

Digitization and Technological Innovations: Digital solutions, such as precision farming systems and soil monitoring, help optimize resource use, minimize losses, and reduce the carbon footprint.

Green Financing Development: The banking sector in the Kyrgyz Republic is beginning to offer specialized loan products to support green projects, including solar panels, energy-efficient technologies, and waste recycling.

3. Regulation and Business Participation in National and International Initiatives

Government policies and the Kyrgyz Republic’s international climate commitments significantly influence business activity. Key elements include:

National Adaptation Plans: Involving the private sector in the development and implementation of the National Climate Adaptation Plan fosters a resilient business environment. Green economic growth policies open avenues for new investments and innovative solutions.

International Obligations and Partnerships: As a party to the Paris Agreement and a participant in the Green Climate Fund (GCF), Kyrgyzstan gains access to financial resources for climate projects aimed at emission reduction and adaptation.

Regulations and Incentives: Introducing tax benefits and subsidies for companies investing in renewable energy and energy-efficient technologies can attract investments and accelerate business adaptation to climate change.

4. Key Challenges and Barriers for Businesses

Despite growing awareness of the importance of climate resilience, the private sector in Kyrgyzstan faces several obstacles:

Lack of Knowledge and Expertise: Many enterprises, particularly small and medium-sized businesses (SMEs), lack information on available technologies and strategies for climate adaptation.

Limited Access to Financing: SMEs often struggle to secure funding for innovative solutions due to high interest rates and a lack of long-term loan products.

Weak Regulatory Framework: Insufficient legislative initiatives to support the transition to a low-carbon economy slow the adoption of green technologies and the development of sustainable business models.

Recommendations

For businesses to effectively engage in climate change mitigation, comprehensive measures are required, including:

Raising Awareness and Training: Conduct educational programs and training sessions for companies on climate risks and adaptation strategies.

Creating Investment-Friendly Conditions: Introduce incentives such as tax benefits and subsidies for companies implementing green technologies and solutions.

Strengthening Collaboration: Foster cooperation between the government, businesses, and international organizations to develop joint projects and programs aimed at reducing climate risks and promoting a sustainable economy.

Conclusion

Businesses in the Kyrgyz Republic have the potential to become key drivers of climate resilience, facilitating the transition to a low-carbon economy and contributing to sustainable development goals in the face of global climate challenges.

Dear Members of the Investment Council and Business Associations,

We have prepared an analytical brief on the current state of workforce training and the adaptation of the education system to labor market demands. This brief examines the key aspects of interaction between educational institutions and the labor market, as well as initiatives aimed at enhancing human capital quality and the competitiveness of our economy.

ANALYTICAL BRIEF ON THE CURRENT SITUATION IN WORKFORCE TRAINING

Analysis of the Current Situation

Modern labor market trends are characterized by rapid technological advancements and significant shifts in workforce skill requirements. According to the World Economic Forum’s report on the future of work, it is essential to consider the fast-evolving labor market, driven by new technologies like automation and digitalization. These technologies are transforming skill and qualification demands, leading to the emergence of new professions and reduced demand for traditional roles. In light of these changes, the development of a national qualifications system, aimed at raising professional skills and competencies, becomes crucial for global competitiveness.

Under the National Development Strategy of the Kyrgyz Republic for 2018-2040, one of the priorities is creating conditions for the comprehensive development of human potential. In this direction, the government is taking steps to improve educational programs, implement dual education, develop training and production centers, and stimulate private investments in the education system. These measures are aimed at improving education quality and aligning it with current labor market demands. Consequently, the state is undertaking efforts to reform the education system, develop new professional standards, and enhance workforce training mechanisms.

National Qualifications System

To improve specialist training quality, the Cabinet of Ministers of the Kyrgyz Republic approved a methodology for developing professional standards and industry qualification frameworks on July 15, 2021. Currently, the Register of Professional Standards includes 67 professional standards across various sectors, including healthcare (e.g., nurses and paramedics), agriculture (e.g., agronomists and livestock specialists), information technology (e.g., cybersecurity experts and software developers), and construction (e.g., civil engineers and designers). Additionally, a National Qualifications Council has been established to coordinate activities among government agencies, employers, and educational institutions in the development of the national qualifications system.

National Qualifications Council and Its Role

The National Qualifications Council (the "Council") is an advisory body created to coordinate the activities of government agencies, employers, educational institutions, and NGOs in planning, implementing, and monitoring the development of the national qualifications system. The Council includes representatives from various ministries, business associations, and industry organizations, enabling it to effectively consider the interests of all labor market participants.

Council Composition:

• Deputy Chair of the Cabinet of Ministers of the Kyrgyz Republic, Social Affairs, Chair of the Council;
• Deputy Minister of Labor, Social Protection, and Migration of the Kyrgyz Republic, Deputy Chair of the Council;
• Deputy Ministers of Education and Science, Finance, Economy and Commerce, Agriculture, Transport and Communications, Health, Energy, Natural Resources, Ecology and Technical Supervision, Digital Development of the Kyrgyz Republic;
• Senior Vice President of the Kyrgyz Republic Chamber of Commerce and Industry;
• Presidents and heads of various industry associations, including Bio-KG Organic Movement Federation, Mining and Geologists Association, Builders’ Union, Communications Operators Association;
• Representative of the Federation of Trade Unions of Kyrgyzstan;
• Directors of light industry, public catering, and leading restaurateurs and hoteliers’ associations, software developers, and service providers;
• Head of the Secretariat of the National Alliance of Business Associations;
• Head of the Resource Center LLC "Kyrgyz Knauf Marketing";
• Head of the Training Center of North Electric Joint-Stock Company.

The Council performs the following functions:

1. Coordinating Function: Ensuring collaboration between all stakeholders (government bodies, labor market representatives, educational service providers, international organizations, etc.) for the comprehensive development of national qualifications system elements, ensuring consistency and transparency of procedures, their compatibility with international methods, and recognition of qualifications at regional and transnational levels. For example, a sectoral qualifications framework was successfully developed in construction, improving workforce training quality and international qualifications recognition.
2. Methodological Function: Developing elements of the national qualifications system (sectoral frameworks, professional standards, assessment tools, etc.) for comparability of results. One successful example is the development of professional standards in IT, creating clear criteria for specialist training and improving educational quality.
3. Educational Function: Coordinating the training of entities involved in the development and application of the national qualifications system. For instance, training seminars were organized for educational institutions’ representatives to implement dual education and improve teacher qualifications.
4. Informational Function: Disseminating information to the public, providing access to methodological and regulatory documents on national qualifications system development. The Council also launched an awareness campaign to encourage employers’ involvement in shaping educational standards, significantly boosting private sector engagement.

Business Community’s Role in the Council

The business community actively participates in the National Qualifications Council's work. Employers can offer suggestions on workforce training and professional standards development, crucial for aligning education and training systems with actual labor market demands. If you have ideas or initiatives on this topic, you may contact the Ministry of Labor, Social Protection, and Migration’s Labor Decision-Making Office. Your initiatives and suggestions will help make this mechanism even more effective and adaptable to economic realities.

Key Challenges and Solutions

A major challenge remains improving the interaction between educational institutions and the labor market. According to World Bank research, over 50% of graduates in the Kyrgyz Republic struggle to find jobs due to a mismatch between acquired knowledge and employer requirements. This underscores the need for close collaboration between educational institutions and businesses to create programs that meet contemporary labor market demands. Existing programs should be more flexible to address the constantly changing market needs and provide graduates with up-to-date knowledge and skills. Strengthening private sector participation in curriculum development and workforce training is crucial for aligning the educational process with professional demands.

Further work is also needed on lifelong learning, a vital factor for supporting professional mobility and adaptation to changes. Specific steps, such as establishing adult education centers, creating advanced training courses, implementing remote learning, and expanding retraining programs for various professional groups, are underway. Recognizing informal and spontaneous learning, as initiated under the National Strategy, is another effective tool.

Recommendations and Future Prospects

To improve the situation, the following recommendations are proposed:

• Strengthening ties between education and business. Private companies should actively participate in forming educational programs and student internships.
• Developing continuous learning. Educational institutions should provide opportunities for workers’ skill enhancement throughout their professional lives.
• Investing in educational infrastructure. Improving the technical base of educational institutions and incorporating modern technologies into the learning process is essential.
• Creating new professional standards. Based on economic needs, professional standards should be created and revised to match current and future market demands.
• Forming professional communities and platforms for knowledge exchange. Creating industry associations and communities can become an essential step in sharing knowledge and best practices.

Conclusion

The Cabinet of Ministers of the Kyrgyz Republic has created a working mechanism allowing employers to actively shape workforce training. Employers can use this mechanism to submit proposals for educational program improvements, develop professional standards, and participate in the National Qualifications Council's activities. For example, companies can apply to create specialized courses to train specialists in specific sectors or arrange student internships, which have been successfully implemented in IT and construction.

The National Qualifications Council and other institutions described above provide a platform for collaboration among government bodies, businesses, and educational institutions, making workforce training more efficient and aligned with modern labor market requirements.

The Cabinet of Ministers of the Kyrgyz Republic has approved and submitted for consideration to the Jogorku Kenesh a draft law "On the Implementation of the Land Code of the Kyrgyz Republic and the Repeal of Certain Legislative Acts of the Kyrgyz Republic." The primary goal of the reforms in land resource utilization is to stimulate their use in the most efficient and rational manner. The state is obligated to develop mechanisms for consolidating the fragmented structure of land ownership and maximizing added value. This will be achieved through state programs in agriculture, the application of fiscal and tariff measures, which will help reverse the trend of land degradation.

In the framework of updating the Land Code of the Kyrgyz Republic, provisions have been revised and/or introduced to promote the liberalization of the land market and the rational use of agricultural land, including aspects such as allocation, withdrawal, alienation, pledge, and evaluation.

The adoption of the new Land Code aims to ensure sustainable management of land resources, improve environmental indicators, and strengthen the country's economic potential. Introducing new technologies and supporting innovations in land use will contribute to the rational use of land resources and ensure stable development across all sectors of the economy.

Link to the new Land Code (in Russian)

Link to related documents

If you have comments or suggestions regarding the new Land Code of the Kyrgyz Republic, please leave them in a special form at this link

The Cabinet of Ministers of the Kyrgyz Republic has approved and submitted the draft of the new Water Code of the Kyrgyz Republic to the Jogorku Kenesh of the Kyrgyz Republic for consideration. The purpose of the new Water Code is to incorporate the laws of the Kyrgyz Republic regulating legal relations in the management, use, and protection of surface and underground water resources, as well as the land of the water fund of the Kyrgyz Republic.

The main objective of the Water Code project and the accompanying Law "On Implementing the Water Code of the Kyrgyz Republic" is to create a unified regulatory framework that meets modern economic and environmental realities. This includes improving water resource management, protecting the rights of water users, and enhancing the investment appeal of the water sector.

The adoption of the new Water Code is expected to promote sustainable water resource management, improve environmental indicators, and strengthen the country's economic potential. The implementation of new technologies and support for innovations in water use will contribute to the rational use of water resources and ensure stable water supply for all economic sectors.

Link to the new Labor Code (in Russian)

Link to related documents

If you have comments or suggestions regarding the new Labor Code of the Kyrgyz Republic, please leave them in a special form at this link