Common language for transition finance: сhallenges and opportunities for Central Asia are discussed on the sidelines of COP28

On the sidelines of COP 28 transition finance seminar took place on December 4 at the Central Asian pavilion. The event highlights include the launch of the transition finance framework for developing countries, panel discussion on transition finance for Central Asia, as well as signing ceremony for Damu Fund joining the Green Investment Principles for Belt and Road (GIP).

The event was attended by members of Financial Centres for Sustainability Network (FC4S), GIP, regional and international financial institutions and NGOs.

The key challenge to transition finance is the lack of private sector financing for decarbonization activities due to various barriers, including the lack of a clear definition of transition activities, scarcity of financial instruments that provide incentives for better performance of emission reductions, and scarcity of demonstration projects that show successful decarbonization is achievable in most of the high-emitting sectors.

Daniyar Kelbetov, Chief Product Officer of AIFC Authority noted: “Sustainability-linked bonds specifically could be an important instrument for transition finance in Kazakhstan in the next phase, providing even brown companies with an incentive to take action to improve environmental sustainability, subject to an ambitious transformation and energy transition plan. I am glad to share that the first such SLB issuance is in the pipeline at the AIFC. On November 30, an agreement was signed between the issuer (ALES) and the strategic investor (Eurasian Development Bank) to finance a project converting coal-based power plants to gas-based”.

“We are happy to welcome the Damu Fund as a 47th member of Green Investment Principles and look forward to working closely with Damu Fund to support the transition and mobilize green investments in Central Asia”, – said Dr. Ma Jun, Chairman of China Green Finance Committee, Co-chair of GIP Steering Committee.

Gaukhar Buribayeva, CEO of Damu Fund said that Damu Fund is happy to join the Green Investment Principles and promote transition to a green economy further.

Damu Fund is the first issuer of green and social bonds in Kazakhstan and provides subsidized funding for green projects of SMEs compliant with national green taxonomy of Kazakhstan.

Special report on Sustainability-linked bonds as potential instrument for transition was published by AIFC Authority ahead of COP28 to support the knowledge base on transition finance of public and interested parties which can be accessed via

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