AIFC Green Finance Centre summarised the results of 2020

The Green Finance Centre summed up the results of 2020 as a part of the 3rd annual meeting of the AIFC Green Finance Advisory Council. The event, chaired by the CEO of Climate Bonds Initiative Sean Kidney, was attended by permanent members of the Council, as well as new members of the group represented by Nikolai Podguzov, Chairman of the EDB Management Board and Professor Alexander Van de Putt, Chief Strategy Officer of the AIFC Governor’s Council.

Minister of Ecology, Geology and Natural Resources of Kazakhstan Magzum Mirzagaliyev made a welcoming speech at the meeting. He noted the contribution of the AIFC Green Finance Centre to the development of a new Environmental Code, and in particular, measures on economic stimulus for green projects, national green taxonomy, as well as the importance of the work carried out by the Centre within Kazakhstan’s new commitments to achieve carbon neutrality by 2060.

“Members of the AIFC Green Finance Advisory Council have been supporting the Centre since the beginning of our journey and have been crucial to our success,” said Aidar Kazybayev, CEO of the AIFC Green Finance Centre.

The Council members well received the information on the activities of the Green Finance Centre for 2020, noting the successful launch of the green bond market and EDB (hereinafter – the Bank) joining the Centre as a shareholder. This cooperation opens new prospects for the development, as well as the expansion of the geography of green finance in the EAEU region.

“The Bank is currently developing a green finance program and one of the priorities of the program is to finance green projects that will contribute to the improvement of environmental situation in the region, reduction of emissions, energy saving and energy efficiency of the economy,” Mr. Podguzov said.

Mr. Linar Yakupov, CEO of IFC Linova and President of the Islamic Business & Finance Development Fund of Russia announced the ongoing work on the issuance of green sukuk, which is scheduled for the second half of 2021. Thus, it is expected to expand the sustainable finance products line at the AIFC Exchange (AIX).

Following the discussion, the Council members noted the importance of disclosure, in particular the introduction of mandatory non-financial (ESG) reporting to facilitate the development of the green finance market, as well as the need to develop new tools outside of subsidies.

The work in these areas will be continued by the Centre during 2021 along with further work on the implementation of the new Environmental Code.

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The Astana International Financial Centra was created by the initiative of the First President of the Republic of Kazakhstan, Leader of the Nation, Nur-Sultan Nazarbayev as part of the “100 steps to implement five institutional reforms” national program. The Centre’s development strategy until 2025 was approved by the Management council of the AIFC during the council’s meeting on July 2, 2020. In accordance with the strategy, the vision of AIFC is in becoming the leading financial centre in the region that includes Central Asia, the Caucasus, EAEU countries, western China, Mongolia, and Eastern Europe.

The mission of the AIFC is in assisting the sustainable and long term development of the region. As the head of state Tokayev noted, “AIFC, with its unique opportunities, can act as a universal platform that connects the countries in the region.”

The strategic directions for the sustainable development of the AIFC include the development of a circular economy, financial technologies, and “digital financial centre.” https://aifc.kz/