Kazakhstan secures €6 million for grid efficiency modernization and energy loss reduction
December 13, 2024
The Mitigation Action Facility announced the selection of seven innovative projects, with Kazakhstan among them. Implemented by the United Nations Development Programme (UNDP) in Kazakhstan, the project with a total budget of EUR€ 6 million aims to enhance grid efficiency, mitigate energy losses, and reduce dependence on coal-based power generation.
"The new project aims to analyze current policies and introduce the regulatory reforms to modernize the grid, demonstrate the viability of advanced technologies, strengthen financial sector capacity, and encourage regional replication of successes,"noted Katarzyna Wawiernia, UNDP Resident Representative in Kazakhstan.
As Central Asia's largest greenhouse gas emitter, Kazakhstan faces critical challenges in transforming its energy system. Its carbon intensity stands at 0.26 tCO2 per US$1,000 of GDP, which is two times higher than that of the EU. The energy sector contributes approximately 85 percent of national emissions, with electricity and heat generation alone accounting for over half of this figure.
The EU Ambassador to Kazakhstan, Aleška Simkić noted:
“The European Union welcomes Kazakhstan’s ambition regarding decarbonisation and achieving net-zero greenhouse gas emissions within a generation, by 2060. There are many steps to take to get there. With this project, we are supporting Kazakhstan in its efforts to modernise its energy systems and reduce losses. EU experience shows that integrating a higher-level green electricity requires well interconnected and modern grids. We are proud to work with Kazakhstan on this goal.”
Ullrich Kinne, Chargé d‘affaires a.i. of the German Embassy in Astana, said:
“With this and many other projects, Germany is supporting Kazakhstan’s path to carbon neutrality by 2060. The agreement on international carbon markets achieved at COP29 in Baku opens many new possibilities in this regard.”
The Mitigation Action Facility is a go-to platform driving climate action across sectors. Established in 2012 by the governments of Germany, Denmark, the United Kingdom, the European Union, and the Children's Investment Fund Foundation as a grant-based programme, it provides technical support and climate finance for mitigation projects.
“The UK strives to accelerate transformational climate action projects and so we are delighted that UNDP’s project proposal for Kazakhstan has won funding from the Mitigation Action Facility, a fund supported by the UK and other partners. Green transformation means green electricity – resilient, energy saving 21st century grids are at the heart of this project and essential to developing a decarbonised, diversified, modernised economy in Kazakhstan,”said Kathy Leach, British Ambassador to Kazakhstan.
This initiative supports Kazakhstan's updated Nationally Determined Contribution (NDC), which aims to reduce greenhouse gas (GHG) emissions by 15 percent unconditionally and 25 percent conditionally by 2030. It also aligns with the Concept for the Development of Energy Saving and Improving Energy Efficiency in the Republic of Kazakhstan for 2023-2029, promoting energy-saving technologies and reducing transmission losses. It is expected that the project will indirectly avert more than 114 million tons of CO2 emissions.
For more information, please contact the UNDP Communications team at kz.undp.media@undp.org .
About the United Nations Development Programme (UNDP)
UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, UNDP helps nations to build integrated, lasting solutions for people and planet.
Learn more at undp.org or follow at @UNDP.
About The Mitigation Action Facility
Mitigation Action Facility is a one-of-its-class platform driving climate action across key sectors. Established in 2012 as a multi-donor, grant-based programme, the Mitigation Action Facility provides technical support and climate finance for mitigation projects.
The Mitigation Action Facility focuses on three key sectors: energy, transport, and industry - and supports cross-sectoral projects linked to one of the priority sectors. Through annual competitive calls, the Mitigation Action Facility supports the most ambitious and feasible climate change mitigation projects to implement countries’ Nationally Determined Contributions (NDCs) under the Paris Agreement.
Aligning our annual calls with the priority sectors identified in the Breakthrough Agenda, we focus on replicable and scalable projects to transition sectors toward carbon neutrality. Our projects leverage public and private finance, enhance skills and create regulatory conditions for GHG emissions reductions, ultimately driving behaviour change for sector-wide transformations.
Since 2012, the Mitigation Action Facility has supported 60 projects across 37 countries, with a total funding volume of EUR 826 million (as of March 2024).
For further information, visit website www.mitigation-action.org
About the European Union
The European Union is an economic and political union of 27 European countries. It is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. It acts globally to promote sustainable development of societies, environment and economies, so that everyone can benefit.