In the context of an accelerating global transition to sustainable development, the search for effective financing mechanisms that contribute to achieving the goals of a low-carbon economy, social responsibility and environmentally friendly growth is becoming especially important. In this regard, the study of innovative financial instruments seems to be an urgent task. The purpose of the article is to study the potential of using innovative financial instruments in investments aimed at the sustainable development of companies, as well as to identify the features and limitations of their use in Russia and Kyrgyzstan. To achieve this goal, the following objectives were set: to conduct a comparative analysis of the experience of Russia and Kyrgyzstan in using innovative financial instruments; to identify key success factors and barriers in the implementation of innovative financial solutions; to develop recommendations for improving the practice of implementing innovative financial instruments in both countries. The research methodology is based on a system approach, including comparative analysis methods. Data from statistical reports, scientific publications, as well as analytical studies in the field of sustainable financing were used. The article presents the main trends and practices of using innovative financial instruments, identifies barriers, including regulatory, institutional and financial ones and suggests ways to overcome them. A conclusion is made about the key role of innovative financial instruments in accelerating sustainable development in the countries. However, for their successful application, it is necessary to develop a regulatory framework, to increase the financial resources availability and to strengthen international cooperation to exchange experiences and improve conditions for sustainable business development.