Qadırlı hanymdar men myrzalar!

On behalf of the United Nations Development Programme I welcome you to this event to celebrate the significant achievements of our joint initiative in renewable energy sector.

Today, as we confront a triple planetary crisis—climate change, biodiversity loss, and escalating pollution – clean and affordable energy becomes a critical solution that directly addresses these interconnected challenges. 

UNDP has placed energy access at the heart of its mission in its Strategic Plan 2022 – 2025. Globally, we have also committed to mobilizing partners to provide 500 million additional people with access to sustainable, affordable and reliable energy by 2025, with a focus on the most vulnerable groups.

Today, with the dominance of fossil fuels in the energy mix, Kazakhstan is the largest emitter of CO2 in Central Asia, with a CO2 intensity of GDP 70 percent higher than the global average. The energy sector accounts for roughly 85 percent of the country’s emissions, with electricity and heat generation alone, contributing to over half energy sector CO2 emissions. Given these, transforming the national energy system is the most important challenge as of today.

In this context, we strongly appreciate the country's vision and political will for low-carbon development. We believe that the important building blocks for Kazakhstan's sustainable transformation are in place and well delineated in the Carbon Neutrality Strategy. 

Energy system decarbonization lies at the heart of the “green” transformation. To unlock the “green” potential of the energy sector and facilitate the transition UNDP, with financial support from the Global Environment Facility and in partnership with national stakeholders, is helping to find sustainable solutions for Kazakhstan's low-carbon development pathway.

We adapted de-risking renewable energy investment methodology to implement new support instruments. The methodology is designed to strategically target interventions and create a "risk-return" profile that encourages private investment to provide reliable, environmentally friendly, and affordable energy solutions in the country. 

To attract foreign direct investment for the development of large-scale renewable energy projects in Kazakhstan, the site-specific renewable energy auctions system was introduced in 2019. Today this mechanism is already making a significant impact, reshaping Kazakhstan’s renewable energy landscape by facilitating more streamlined and effective development of large-scale renewable energy projects.

In terms of the small-scale renewable energy projects, UNDP was one of the few organizations that supported Ministry of Energy in advocating legislative amendments aimed at fostering the growth of small-scale renewable energy sources in Kazakhstan.  The impact of these efforts is substantial. According to estimates, the implementation of rooftop solar installations in just 5-10 percent of households across the country would be equivalent to the energy output of a large thermal power plant with a capacity of 500-1000 MW.

Furthermore, to improve access to green financing in collaboration with one of our strategic partners, the “Damu” Entrepreneurship Development Fund we have introduced and tested various financial support mechanisms. (I am using this opportunity to sincerely thank Ms. Gaukhar Buribayeva for her leadership and continuous support.). It is important to highlight that the financial instruments have significantly improved access to “green” financing for more than 60 projects of small and medium-sized enterprises with a total investment of 3,9 billion tenge dedicated to the implementation of green technologies. These projects have been successfully implemented in the regions of Aktobe, Almaty, East Kazakhstan, Karaganda, Mangystau, North Kazakhstan and Turkistan, as well as in the cities of Almaty and Shymkent.   To ensure the continued sustainability of our efforts, our interventions were strengthened by integrating the green bond interest subsidy instrument into the government programme. 

As UNDP, we remain steadfast in its commitment to further collaborating with the financial market to advance our new initiatives. We are particularly excited about the upcoming launch of the Sustainability Disclosure and Management Hubs programme in Kazakhstan, which will enhance our efforts to promote transparency and drive sustainable reporting practices. 

By bringing together different stakeholders, UNDP is ready to further promote dialogue, knowledge sharing and partnerships that advance “green” agenda and address common challenges for sustainable development.

Thank you! Kop rakhmet!