Development of “Green” Financing in Kazakhstan
Kazakhstan is actively transitioning to “green” economy. Investments in domestic projects aimed at environmental protection are growing rapidly. For example, the amount of such investments has exceeded 129 billion tenge (US$307.9 million) over 10 months of this year, which is almost by 22 percent more over the same period in 2019. According to analysts, on average, the investments in the country’s “green” projects grew by 87.2 percent in recent years. These funds are aimed at resolving issues related to emissions of pollutants into the atmosphere and their disposal, as well as at launching innovative projects in the renewable energy sources field.
“For the past five years, involving EXPO - three years, the issue and “problem” in financing “green” projects, first of all, renewable energy sources, such as locomotive, large and powerful power plants, was significantly resolved and eased. Another important trend in financing green projects in Kazakhstan is the rapid decline in capital costs and the cost of launching new green facilities. The investments costs in new facilities dropped almost threefold in two-three years, which is, of course, makes them more affordable. Now we are talking not only about large projects, but also about small generation, attracting more financial institutions”, said Arman Kashkinbekov, Head of UNDP Sustainable Development Unit in Kazakhstan.
Development of the “green” financing has accelerated the construction of new facilities in the renewable energy field in Kazakhstan, experts say. Thus, if in 2015 the share of renewable energy sources in the total volume of electricity production in the country totaled only 0.77, today this figure exceeds three percent. The volume of “clean” energy generated by hydro, wind and solar power plants has increased by 44 percent over the last year alone.