Strategy for achieving carbon neutrality until 2060: opportunities and risks for Kazakhstan

Chairman of the National ESG Club, CEO of the AIFC Green Finance Centre Aidar Kazybayev took part in the discussion platform of the Fourth Climate Dialogue within the framework of the 6th annual financial conference World Investor Week.

The discussion platform was organized by the Green Academy with the support of the Representative Office of the European Union in Kazakhstan and the International Trade Centre (ITC) with the participation of representatives of state bodies and public associations of the Republic of Kazakhstan, international organizations, and experts.

The purpose of the discussion was to discuss the draft Strategy for achieving carbon neutrality of the Republic of Kazakhstan until 2060.

In his speech, Aidar Kazybayev noted the importance of developing a draft Strategy and outlined 3 main conditions

Firstly, the Strategy should become a key economic document for the
long-term development of Kazakhstan, assuming a transition from a linear to a cyclical model of development or a closed economy model. With the adoption of the Strategy, current economic programs, fiscal policy and business roadmaps should be revised. Industrial and household waste, for example, should become production resources, and forest plantations should become economic assets with an absorbing effect. Secondly, strategic guidelines and a clear interdependent stage of implementation should be established. For example, since what year is there a ban on plastic for household purposes, a complete ban on flaring, etc. Third, the Strategy should motivate businesses to conduct low-carbon business. To do this, government incentives and business support measures should be clearly outlined when switching to low-carbon development or attracting the best available technologies. Even subsidies for the agricultural sector should take into account ESG factors to prevent the use of harmful chemical fertilizers. In addition, the Strategy should open up new opportunities for the creation of environmentally friendly industries.

In conclusion, A. Kazybayev spoke about the projects and initiatives of the AIFC Green Finance Centre to promote the principles of sustainable development, in particular, the creation of a National ESG Club, the elaboration of issues of creating an ESG rating and the launch of carbon units trading on the basis of the AIFC.

Reference:

The National ESG Club was created as part of Astana Finance Days 2022 on July 28, 2022 and united 19 companies that are leaders in ESG transformation in their industries. Today the Club includes 30 companies.

The Astana International Financial Centre (AIFC) is an independent jurisdiction that started operations in 2018. In accordance with the Development Strategy until 2025, the key focus of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and the Caucasus. www.aifc.kz

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 www.gfc.aifc.kz