Legal Framework of Sustainable Finance


Green taxonomy of Kazakhstan

Since sustainable investments gaining momentum, there is a widely perceived need for greater certainty on the environmental sustainability of different types of investments and economic activities. In response, a number of jurisdictions, including Kazakhstan have started to legislate to create official definitions of sustainable finance and to develop sustainable (green) finance taxonomies.

A taxonomy of green (sustainable) projects as a classification is needed to provide a common understanding and approach to the identification, development and financing of green (sustainable) projects, as well as to increase investor confidence and prevent “green camouflage” – a situation where projects without environmental benefits are labelled as “green”.

The taxonomy also provides a framework for disclosure and reporting, as well as for the use of economic incentives such as interest rate subsidies and guarantees. More precise and consistent definitions of which investments are “green” and “sustainable” could facilitate investment by giving confidence and assurance to investors. Other potential benefits include easier tracking of sustainable finance flows to be able to measure them or to take a policy action such as setting incentives.

In 2021, the Green Finance Centre has developed the Green Finance Taxonomy that sets criteria for projects eligible for green financing. The Green Finance Taxonomy was adopted by the Decree of the Government of the Republic of Kazakhstan (put a link to taxonomy

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