Joint EU – Central Asia projects can be implemented through the AIFC platform
November 5, 2021, Bishkek, Kyrgyz Republic. CEO of the AIFC Green Finance Centre (GFC, Centre) Kazybayev A.K. took part in a Business forum on the topic «Business partnership between the European Union and Central Asia» and spoke at a session dedicated to the new realities of the creative and green economy.
In particular, Mr. Kazybayev shared with the forum participants the vision of the Centre regarding the use of green financing tools to support joint environmental initiatives. In his speech, he told the audience about the services provided by GFC, about the development trends of Kazakhstan and Kyrgyzstan in the field of financing sustainable development and shared Kazakhstan’s experience in the formation of a regulatory framework for green financing.
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The forum participants were familiarized with the work of the Centre carried out within the framework of expanding the range of financial instruments in the field of sustainable development (bonds related to sustainable development, SDG and ESG bonds) at the AIFC site. This measure is a logical reflection of the current agenda – achieving carbon neutrality by 2060 within the framework of Kazakhstan’s commitments to reduce greenhouse gas emissions reflected in the Paris Agreement.
Also, ESG (Environmental, Social, Governance) reporting would be called one of the key elements of sustainable transformation in companies. Against the background of the revolution observed today in management practice and the introduction of ESG reporting, it is obvious that the activities of financial and non-financial corporations of the world will, one way or another, reflect the trend towards decarbonization.
In addition, Aidar Kazybayev presented his vision for the creation of a Regional climate hub of Central Asia for sustainable development. The International green technologies and investment projects Center should play a key role in this hub, since for the Central Asian countries, the transfer of green technologies and investments are the most important tools for achieving carbon neutrality.
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Summing up his speech, Kazybayev A.K. said: «The main ways to strengthen project support for the greening of extractive enterprises are defined primarily by the introduction of ESG standards, an efficient carbon market, measures of preferential financing of green projects beyond the support of SMEs, that is, for large projects, and the expansion of the tools for financing green projects through such instruments as PPP funds, direct and venture capital investments, IPO».
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The Astana International Financial Centre 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 to assist 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 sustainable development of the AIFC include the development of a circular economy, financial technologies and a “digital financial centre”.
The AIFC Green Finance Centre is a subsidiary organisation of the AIFC Authority and the Eurasian Development Bank, aimed at introduction and development of sustainable finance instruments and attracting of investments in environmental and social projects in Kazakhstan and Central Asia.
The AIFC Green Finance Centre supported the very first issuance of green bonds and first verified green loan in Kazakhstan. Also, the Centre introduced definitions of green finance and green taxonomy (a classifier of economic activities and projects that meet technical selection criteria) in the national environmental legislation. The new legislation provides incentives for entrepreneurs who use green finance instruments.
