Water is one of the defining development challenges of the 21st century. From drinking water scarcity to extreme weather events like floods and droughts, the availability and quality of water shape economies, societies, and ecosystems worldwide. In Central Asia, and particularly in Kazakhstan, water security is increasingly strained by climate change, outdated infrastructure, and competing demands across agriculture, industry, and households. As the region grapples with these challenges, it is clear that water cannot be managed in isolation—it must be viewed as an interconnected system where governance, technology, finance, and ecological resilience align.

The twin crises of floods and droughts

Globally, 90 percent of natural disasters are water related. Floods and droughts, prime examples of such disasters, though seemingly opposite phenomena, are often two sides of the same issue: ineffective water management. Kazakhstan has witnessed both devastating floods and prolonged droughts in recent years, each causing billions in damages and displacing thousands. For instance, in 2024, floods across the country forced the evacuation of more than 96,000 people, causing damage estimated at over $450 million. Meanwhile, the summer of 2021 brought one of the worst droughts in decades, with 1,000 hectares of land catching fire on the territory of the Karaganda region, agricultural losses across the country and livestock mortality reaching alarming levels, ultimately affecting thousands of families.

A systemic approach recognizes that these events are not just natural disasters but signals of deeper vulnerabilities in water governance, infrastructure resilience, and climate adaptation. Solutions lie not just in disaster response but in proactive measures that balance water storage, improved forecasting, and nature-based solutions.

Building resilience through response and learning

In 2024, Germany, Spain, Brazil, Pakistan, and numerous other countries—despite their varying forecasting systems and flood-prevention infrastructures—experienced overwhelming flood-related devastation. The maturity of a water management system is not measured by its ability to predict every extreme event but rather by how effectively it responds and learns from them. The true test of a resilient system is its ability to adapt after crises, embedding lessons into future policies and infrastructure investments. 

Kazakhstan is making strides in this regard, particularly through improved flood risk management. The government with support of international partners has launched initiatives to strengthen monitoring and forecasting systems, to modernize dam infrastructure, and to make response mechanisms more efficient. Currently, gaps remain in early warning systems, and response coordination needs to be more robust. Investments in flood risk mapping, real-time monitoring, and early warning systems can significantly enhance preparedness and mitigation efforts, reducing economic and human losses.

Coordination is key: UNDP’s role in Kazakhstan’s water governance?

Fragmented governance can be a key obstacle to effective water management. With multiple agencies overseeing different aspects of water policy, clarity on responsibilities is often lacking. To address such challenge, UNDP Kazakhstan has supported the Ministry of Water Resources and Irrigation of Kazakhstan with creation of a Coordination Council of Partners for Water Sector Development, bringing together key stakeholders from government, private sector, and civil society. This council is designed to foster cooperation, streamline decision-making, and ensure that all partners work towards a coherent national strategy.

A well-functioning coordination mechanism enables efficient allocation of resources, minimizes redundancies, and promotes integrated water resource management. Kazakhstan’s new Water Code and Water Sector Development Concept will benefit from this structured dialogue, ensuring policies are not only formulated but effectively implemented.

Digitalization: a tool, not a solution

Digitalization is frequently heralded as a game-changer in water management, promising enhanced efficiency, precision, and adaptability. However, while digital tools such as real-time monitoring systems, predictive analytics, and AI-driven forecasting can greatly improve decision-making, they are not standalone solutions. Without a strong methodological foundation, adequate infrastructure, and a workforce equipped with the necessary expertise, digitalization risks becoming an underutilized or misapplied resource.

A compelling example is TALSIM, a sophisticated hydrological modeling tool that strengthens forecasting capabilities by integrating real-time data with predictive algorithms. While such tools can provide invaluable insights for managing water resources, their effectiveness ultimately depends on the institutions and individuals utilizing them. A digital platform is only as powerful as the data it processes and the professionals interpreting it. Indeed, digital water solutions often fail due to a lack of technical expertise and institutional buy-in, hence investments in training and governance structures must accompany technological advancements to maximize impact.

Financing the future: blue bonds and catastrophe bonds

Building and maintaining water infrastructure is a significant financial burden, requiring continuous investment for construction, modernization, and upkeep. Aging pipelines, irrigation systems, and hydrotechnical structures demand regular maintenance, while climate change and population growth necessitate new, adaptive solutions. However, relying solely on public funding is often insufficient to meet these demands, making it essential to explore diverse financing mechanisms. Modern water management requires innovative financial strategies to bridge investment gaps and ensure long-term sustainability. Kazakhstan has the opportunity to tap into financial instruments such as blue bonds, which support sustainable water projects, and catastrophe (cat) bonds, which provide payouts in the event of extreme floods. 

​The global issuance of blue bonds has been growing, with cumulative issuances totaling approximately $6.8 billion as of the end of 2023, marking a promising pathway for investments in sustainable water infrastructure. Meanwhile, cat (catastrophic) bonds market has expanded to over $50 billion, predominantly covering hurricane and earthquake risks in regions like the U.S. and Japan. However, there is a growing interest in deploying cat bonds in flood-prone areas, including Central Asia, to provide rapid financial relief during crises. These tools can mobilize capital for essential infrastructure upgrades, reducing reliance on state budgets and enhancing financial resilience.

By developing bankable water projects, Kazakhstan can attract financing from international financial institutions, development banks, and private investors who are increasingly seeking sustainable and impact-driven investments. Referring to past success of UNDP with issuing first green bonds in Kazakhstan, it is relatively safe to say that structuring projects to align with global sustainability frameworks and risk-reduction strategies can open new funding avenues, ensuring that water resilience efforts are financially viable and contribute to long-term economic development.

Climate adaptation and biodiversity conservation: the missing links

Water security is deeply intertwined with climate adaptation and biodiversity conservation—it’s a cycle where each element reinforces the other. Degraded ecosystems—such as dried-up riverbeds, deforested watersheds, and overexploited wetlands—exacerbate water scarcity, increase flood risks, and disrupt natural hydrological cycles. In turn, water scarcity and mismanagement accelerate ecosystem degradation, creating a vicious cycle. Integrating nature-based approaches like wetland restoration, sustainable land management, and reforestation into water policies to enhance resilience, improve water availability, and ensure long-term sustainability are great steps in building systemic solutions.

Kazakhstan’s vast steppe, forests, and mountain ecosystems play a crucial role in regulating water cycles by storing precipitation, replenishing groundwater, and reducing erosion. Protecting these landscapes isn’t just about conservation—it’s about safeguarding water security itself. Policies that promote sustainable agriculture, reforestation, and improved land-use planning can reinforce water resilience while supporting broader climate adaptation and biodiversity goals. For instance, Kazakhstan’s national reforestation program, which aims to restore over 1.5 million hectares of degraded land by 2030, is expected to enhance groundwater recharge, improve soil moisture retention, and mitigate flood risks. By prioritizing ecosystem-based approaches alongside engineered solutions, Kazakhstan can build a more adaptive, climate-resilient water management system, where both nature and people thrive together. After all, biodiversity and water are inseparably linked—a system where one cannot thrive without the other. Or, as they sang in The Lion King’s Circle of Life, it’s all connected. 

Conclusion: towards a systemic water strategy

Kazakhstan stands at a pivotal moment in its water governance journey. The challenges are immense, but so are the opportunities. By embracing a systems approach—one that integrates governance, technology, finance, and nature-based solutions—Kazakhstan can chart a course towards a water-secure future.

Achieving sustainable water management requires more than just technical expertise—it demands political commitment, public engagement, and sustained investment. UNDP is there to support this transformation by fostering collaboration, strengthening digital capacities, and mobilizing financial resources. With a forward-looking strategy and collective effort, Kazakhstan can move beyond reactive measures and build a resilient, adaptive, and sustainable water management system that meets the needs of both present and future generations.