CEE finance insights: Central Asia’s evolving sustainable finance market
In our CEE finance insights series, we examine the legal and commercial developments shaping finance across Central and Eastern Europe, the Western Balkans and Central Asia.
Part 1 considered the growing role of Sustainability-Linked Loans in the Western Balkans.
In part 2, we turn our attention to Central Asia to examine how:
- sustainable finance markets are developing across the region;
- international financial institutions are helping to mobilise private capital; and
- international financing standards are interacting with evolving local legal and regulatory frameworks.
Sustainable finance in Central Asia
Central Asia is attracting increasing attention from international investors and financial institutions as governments across the region seek to modernise infrastructure, diversify their economies and support more sustainable growth.
The European Bank for Reconstruction and Development (EBRD) invested almost US$2 billion (€1.72 billion) through 120 projects in Central Asia and Mongolia in 2025. Almost one third supported sustainable infrastructure and 53% of the investment promoted green economy projects. Uzbekistan was the leading recipient, receiving more than US$1 billion (€880 million), while Kazakhstan received almost US$440 million (€378 million). [1]
This activity illustrates the scale of financing required across the region and the opportunities emerging for project and infrastructure finance, green loans and other sustainable finance instruments.
Recent regional research suggests that Kyrgyzstan and Tajikistan have also now entered the market with their first corporate green bonds. [2]
Kazakhstan and the development of sustainable finance
Kazakhstan provides a useful example of how sustainable finance frameworks are developing within the region. The Astana International Financial Centre (AIFC) has developed sustainable finance materials, including methodological guidance on applying Kazakhstan’s Green Taxonomy to green bonds, green lending and business support measures. [3]
AIFC analysis recorded approximately KZT150.2 billion of green bonds and green loans issued in Kazakhstan during the first three and a half years of the market. It also identified incentives for SMEs, including loan-rate subsidies for green projects, green bond coupon subsidies and green bond guarantees. [4]
These developments demonstrate an important feature of sustainable finance in Central Asia: international financing concepts are increasingly being incorporated into domestic legal and regulatory frameworks rather than simply imported from overseas markets.
Applying international standards in developing markets
Borrowers seeking international financing increasingly need to consider both domestic requirements and internationally recognised sustainable finance standards.
For green financing, this can involve clearly defined use-of-proceeds criteria, assessment against an applicable green taxonomy and appropriate external review. AIFC analysis refers to internationally recognised frameworks including the International Capital Market Association’s Green Bond Principles and the Climate Bonds Standard. [4]
This interaction between domestic regulation and international standards has practical consequences for transaction structuring and documentation. A structure familiar to an international lender may require adaptation to reflect local law, regulatory requirements and available security arrangements. Borrowers also need to consider at an early stage whether they can satisfy the reporting, verification and information requirements associated with the proposed financing product.
A developing regional market
There is no single Central Asian sustainable finance market. Countries across the region are at different stages of developing their legal frameworks, financial markets and sustainable finance infrastructure.
International financial institutions therefore continue to play an important role in supporting investment and market development. The EBRD describes itself as the largest institutional investor in Central Asia and, as of January 2026, had financed 1,250 projects for more than €21 billion across the region. [1]
For lenders, the region offers opportunities to participate in markets with significant requirements for infrastructure, energy transition and private-sector investment. For borrowers, international capital can provide an important source of funding, but accessing it requires consideration of more than the commercial terms alone.
For legal advisers, the challenge is similar to that identified in the Western Balkans: financing structures need to satisfy international standards while remaining workable within the relevant domestic legal and commercial environment. As domestic sustainable finance frameworks develop and institutional investment continues, Central Asia is likely to become an increasingly important market for sustainable finance.
In the third instalment of our finance insights series, we will examine the growing role of private credit in the CEE region, how approaches vary across different markets, and the key legal considerations for cross-border implementation.
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Sources
[1] European Bank for Reconstruction and Development, “EBRD invests almost US$ 2 billion in Central Asia and Mongolia in 2025”, 30 January 2026.
[2] Astana Green Investment Principles, “State of Sustainable Finance in Central Asia”,
[3] Astana International Financial Centre, “AIFC documents on sustainable finance”, including Methodological Guidance on the Application of the Green Taxonomy of Kazakhstan.
[4] Astana International Financial Centre, “Green finance market in Kazakhstan”.