Bishkek, Nov. 14, 2023. / Kabar/. The Kyrgyz Stock Exchange (KSE) and DiGi LLC have officially entered into a Joint Venture Agreement aimed at advancing the market for trading quotas on greenhouse gas emissions (CO2). This collaboration replaces the conventional method of obtaining carbon credits for projects focused on reducing carbon emissions. Under the signed agreement, both parties commit to jointly promoting these two new innovative financial exchange instruments within the financial market of Kyrgyzstan, contributing to the advancement of sustainable economic development.
A carbon credit is a way to obtain preferential financing and offset the costs of companies seeking to reduce carbon dioxide (CO2) emissions voluntarily, without exceeding the government-regulated limit for greenhouse gas emissions.
Medet Nazaraliev, President of the Kyrgyz Stock Exchange, stated:
"Carbon or carbon credits are a special financial instrument that helps offset environmental consequences. Currently, this instrument is actively developing worldwide, and neighboring countries are already working to limit greenhouse gas emissions. By 2050, our republic aims to achieve carbon neutrality. This is a very ambitious task, and we are only at the initial stage today. Therefore, to develop this market, we need to create a regulatory system for entities, a national registry of greenhouse gas emissions, and a system of regulatory quotas. For example, in terms of carbon dioxide emissions per capita in the Eurasian region countries in 2021, Kyrgyzstan ranked second to last with 1.4 tons per person per year, which is a good indicator, considering that the world average emissions in 2021 were 4.7 tons per person per year."
Nurbek Elebaev, Chairman of the Committee for Strategic Planning and Corporate Development, and a member of the Board of Directors of the Kyrgyz Stock Exchange, added:
"Today, the Kyrgyz Stock Exchange and the company 'Digi' face a challenging task - to create an effective platform for trading greenhouse gas emissions quotas (CO2) and thus declare Kyrgyzstan's commitment to the principles of 'green' economic development. Our neighbors and exchange partners in Russia and Kazakhstan have been confidently moving 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 carbon quotas and credits are successfully used for sale worldwide today, financing and encouraging enterprises to reduce harmful CO2 emissions into the atmosphere. However, this requires coordinated efforts of the state and business. Therefore, from the business side, we will initiate voluntary procedures in this direction. At the same time, we are ready to assist and support the government in developing the regulatory framework (laws and regulations) and implementing joint measures with the financial market to encourage companies to reduce greenhouse gas emissions. Currently, under the signed agreement, both parties are ready to develop and launch the first joint project for the implementation of a carbon credit in Kyrgyzstan, which will serve as a model for domestic companies and investors. In the future, we intend to create a system for business-initiated projects on the stock market, both for projects to reduce greenhouse gas emissions and their financing by foreign financial companies."
Nurlan Shapanov, CEO of LLC "DiGi", expressed:
"Our company is a leader in digitization issues in the Republic. We pay special attention to the digitization of environmental projects: from monitoring marals using drones to satellite monitoring of archery. Also, an important issue for us is accounting for CO2 emissions and sequestration. It is important to note that transparency provided by digitization is what foreign investors and carbon credit buyers want to see. Therefore, the more accurately we measure the impact of environmental projects on the nature of Kyrgyzstan, the more money we can attract to our economy. Our company sincerely hopes that cooperation with the Exchange will be fruitful and aimed at the state's interested involvement in this process."
It is worth noting that carbon credits are rapidly gaining popularity worldwide and will soon be introduced universally. Such credits are directed towards the implementation of climate projects aimed at preserving the environment.
"DiGi" is the first deep tech company in Kyrgyzstan, specializing in cutting-edge technologies, research, and innovations. The company's mission is to apply scientific research and advanced technologies to contribute to sustainable development and the digital transformation of Central Asia. We specialize in the use of artificial intelligence to efficiently solve complex problems.
"DiGi"'s passion lies in creating innovative software solutions that enhance people's lives and contribute to the preservation of the environment and biodiversity.
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