21 November, 2019
Kazakhstan became the first country in the post-Soviet space to switch to a green economy. In 2007, the Environmental code was adopted, in 2013 the Concept of transition to a green economy was adopted, and in 2016 the Paris Convention was ratified. In the above-mentioned and other documents, Kazakhstan's goals in the green economy are set until 2050. Thus, the share of alternative energy sources in the structure of electricity generation will reach 30% by 2030 and 50% by 2050. In addition, by 2030, it is planned to reduce greenhouse gas emissions by 15% compared to 1990 levels, to take measures to adapt to climate change, including the construction of new power plants on renewable energy sources.
A new Environmental code is currently being drafted. At the end of this year, the document will go to Parliament. For the purpose of widespread use of green finance and clean technologies, the new Environmental code introduces the concepts of green finance and green projects, which include green bonds, green loans and other instruments of green finance.
Green Finance is the financial resources that help to develop projects aimed at reducing air pollution, reducing the consumption of water, energy, heat and so on. Green Finance instruments are green bonds, CO2 emissions quota trading, green loans, green bank cards, green mortgages and green insurance.
The AIFC considers the industry of green finance as one of the strategic directions of its activity. It is expected to adopt the Rules for the issue and circulation of green bonds, developed on the basis of the Principles of Green Bonds of the International Capital Markets Association and the provisions of the Сlimate Bonds Initiative. One of the instruments of green financing, along with green loans, green mortgages and green insurance, are green bonds, which are very much in demand in the world today. Thus, according to the Climate Bonds Initiative, in the first half of 2019, the issue of green bonds amounted to 118 billion US dollars. However, the dynamics of annual greenhouse gas emissions is increasing. For instance, over the past 6 years, global emissions have increased almost 15 times. Accordingly, we can see that the green bond market has a great future. Kazakhstan can become a participant of this market.
For further information, please contact:
Saniya Perzadayeva, Managing Partner, Unicase Law Firm
saniya.p@unicaselaw.com
