Kyrgyzstan’s participation as a member of the three Rio Conventions provides access to resources for improving environmental management that will yield global environmental benefits. The aim of this project is to assist Kyrgyzstan in protecting its environmental resources and to prevent further degradation by initiating a process of environmental fiscal reform. 

At the international level, this project will also help meet global environmental objectives by improving the capacities to conserve biodiversity, mitigate and adapt to climatic changes, and reduce land degradation. This project will initiate and demonstrate the effective and efficient reform of targeted fiscal measures for environmental protection and management.  Given that environmental fiscal reform is a complex and wide reaching process, affecting and affected by broader reforms in public finance management, this project is narrowly focused on addressing fiscal instruments for collecting, managing and allocating revenues from fines for environmental degradation.  There are three main project outcomes.  The first is the development of a tax instrument for controlling and managing industrial pollution that significantly degrades land and biodiversity-rich ecosystems and habitats, as well as contributes to climate change through atmospheric pollution. The second outcome serves to ensure the institutional (largely political and financial) sustainability of the project by developing a clear, transparent and manageable strategy and guidelines for fiscal management of resources for environmental protection and natural resource management. The third outcome focuses on strengthening the human and institutional capacities for assessing, calculating and collecting fines for industrial pollution.

The project was extended till July of 2012.

Delivery of the project in 2009 - $105,000; 2010 - $40,000; 2011 - $137,122.