ERI experts spoke about global trends and challenges in the field of “green” finance

Only 1% of the total volume of bonds in the world have the prefix "green"

ERI experts spoke about global trends and challenges in the field of “green” financing and local projects on mitigation and adaptation to climate change at the “Forum on Green Financing of the Tourism Sector: Dialogue on the Development of the Tourism Industry in Kazakhstan”.

Deputy Director of the Secretariat for Sustainable Development Goals (SDGs) Yerlan Karimov and leading expert of the Center for Macroeconomic Research and Forecasting Aydin Bakdolotov presented the Economic Research Institute (ERI) JSC at the forum.

Only 1% of the total volume of bonds in the world have the prefix “green”, Yerlan Karimov noted in his speech. He spoke about the main problems of "green financing" in the world , such as the absence of a system for accounting for such projects and the problem of the difference in interpretation of the concept of "green project" in the development of regulatory legal acts.

An ERI expert presented possible directions for the development of " green finance " in Kazakhstan , including:

• “Green government procurement” (following the example of the G7 Green Seven countries, which in 1995 introduced a government procurement system based on the principle of reducing the negative impact on the environment).
• "Green Bonds" (the tool of "green labeling" for bonds, operating in 37 countries).
• "Green index" in the stock market (listing of "green companies" on a preferential basis) and others.

The speaker also cited examples of international experience in the development of "green" economy and its financing:

• The UK has invested £ 92 billion in renewable energy sources (RES) since 2010. According to its industrial and green finance strategy, the country plans to invest billions in transport and digital infrastructure, the development of the 5G network (£ 176 million) and charging stations for electric vehicles. Now the country is talking about the allocation of a billion pounds sterling in heating networks and £ 35-65 billion for the modernization of existing residential buildings.

• The experience of China's green economy is no less indicative. There are more than 1,600 state incubators and science parks operating here, most of which are involved in projects to develop environmentally friendly technologies . This puts China at the forefront of patents worldwide in six key areas, including wind power, biofuel production and clean coal use.

• An interesting case is France , the first country in the world to conduct an environmental assessment of the state budget. The country analyzed for compliance with the six environmental goals 574 billion euros of expenditures specified in the draft law on the state budget for 2021, and 100 billion euros provided for in the recovery plan.

In 2015, Kazakhstan signed the Paris Agreement, in 2020 the Head of State announced the goal of achieving carbon neutrality by 2060, the development of the Concept of low-carbon development and the renewal of NDC began, a new Environmental Code was adopted in 2021, ERI expert Aydin Bakdolotov said, talking about the climate politics of Kazakhstan .

The speaker mentioned the projects on mitigation and adaptation to climate change being implemented in the country. These include the development of a Low-Carbon Development Concept and the Renewal of Kazakhstan's Nationally Determined Contribution (NDC), as well as the Climate Resilient Economic Development project.

ERI experts voiced proposals for the development of “green” financing, such as providing entrepreneurs with reporting on environmental, social and management factors to be able to monitor their activities and attract investment.

The Forum on Green Finance for the Tourism Sector: Dialogue on the Development of the Tourism Industry in Kazakhstan was held to involve financial institutions and government officials in the development of new green finance strategies and opportunities for the tourism sector in Kazakhstan.

The event was attended by public and private, national and international financial institutions; national and local governments responsible for the development and implementation of public services, economic planning and finance policies; representatives of the tourism industry and the environment.

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The forum was held as part of the project SUSTOUKA. The project is aimed at accelerating the transformation of Kazakhstan into a "green"

economy by increasing the sustainability and competitiveness of its tourism sector, raising environmental awareness and introducing appropriate sustainable practices and technologies in the tourist accommodation sector in

Kazakhstan. The project is being implemented by an international multidisciplinary consortium led by EKOTEK (Spain), which includes the Kazakhstan Tourism Association (KTA), Kazakhstan Association of Hotels and Restaurants (KAGIR) and the European Center for Environmental and Agritourism ECEAT (Netherlands). The project is funded by the European Union (EU) through the SWITCH-Asia program. Project implementation period: March 2020 - February 2023.

Read also: Sustainable Tourism Development in Kazakhstan - Conference with the participation of the SDG Secretariat