Reduction of greenhouse gas emissions through greening of the fuel and energy sector

Under the Paris Agreement, Kazakhstan has committed to reducing greenhouse gas emissions from 1990 levels (386.3 million tons) by 15% by 2030 (328.3 million tons). More than 70% of all greenhouse gas emissions are accounted for by the fuel and energy sector of Kazakhstan. It is obvious that this sector should become the main driver of reducing the carbon footprint and decarbonizing the economy of Kazakhstan in general.

The key player in the fuel and energy sector of Kazakhstan is “Samruk-Energy” JSC. It is the largest energy holding in Kazakhstan and Central Asia. This company accounts for more than 40% of coal production and about 30% of total electricity generation in Kazakhstan. At the same time, “Samruk-Energy” JSC manages the largest renewable energy facilities in Kazakhstan, including hydropower. Their total capacity is about 1000 MW.

In this regard, the Green Finance Centre intends to become a key financial and environmental consultant of “Samruk-Energy” JSC and contribute to the accelerated green transformation of the energy holding.

Recently, the CEO of the Green Finance Centre Aidar Kazybayev held talks with the Chairman of the Board of “Samruk-Energy” JSC Sungat Yessimkhanov. The matters of issuing green bonds, introducing ESG principles into the corporate policy of the Holding, as well as attracting investors to projects under construction in the field of renewable energy were discussed at the meeting. Subsidiaries of the Green Finance Centre such as Green Technology Hub and the Eurasian Environmental Fund will present proposals for the introduction of green technologies, as well as technologies for coal enrichment, carbon capture and storage. In addition, issues of large-scale tree planting in the regions of the holding’s active activity were discussed.

Following the meeting, the specialists of the Green Finance Centre and Samruk-Energy will create a working group and develop a detailed plan for joint activities.

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The Astana International Financial Centre (AIFC) 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 Management council of the AIFC during the council’s meeting on July 2, 2020 approved the Centre’s development strategy until 2025. 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.” For more information about the AIFC, follow the link www.aifc.kz

The AIFC Green Finance Centre is an AIFC Organisation created to enable the development of green finance in Kazakhstan and Central Asia. The main goal is to bring investments to sustainable economy through trending financial instruments, such as green and social bonds. In addition to that, the AIFC Green Finance Centre, being a regional think-tank, provides strategic and business consulting in green finance and sustainable development to Governments, quasi-state organisations and entrepreneurs. The Centre provides initial assistance to potential issuers, investors and market players on preparations for the issuance of green bonds on the AIFC Exchange (Astana International Exchange).

“Samruk-Energy” JSC is the largest diversified energy holding, successfully integrated into the international energy balance, creating value for its shareholders and aimed at forming a highly efficient energy supply system that ensures the sustainable development of all sectors of Kazakhstan.