World Monitor Magazine, №1/2020 WM_March 2020_FOR WEB (12.03.) | Page 20
DESTINATION KAZAKHSTAN
Green light for sustainable
development
In light of the recent discussions at the World Economic Forum in Davos,
Switzerland, where topics such as climate change, corporate social
responsibility and corporate governance dominated, how can the AIFC
comment on the opportunities provided by the Centre in the field of
sustainable development including new for the country green finance?
Kairat Kelimbetov,
the governor of Astana
International Financial
Centre
18
world monitor
The agenda of the World Economic Forum
highlights the most pressing issues that
are shared by governments, businesses
and local communities. This year’s focus on
topics that will affect future generations
long after the forum has ended is a
testament to the forward-looking vision
of the stakeholders in the global economy.
Kazakhstan, as a country and as a player
in regional and international economic
integration processes, understands the
challenges faced by world leaders and is
contributing its part in finding solutions to
the problems. As such, the first president
of the Republic of Kazakhstan, Nursultan
Nazarbayev, initiated the creation Astana
International Finance Centre, a separate
jurisdiction for an ecosystem that
effectively serves as the gateway to the
local and regional capital market and thus
fosters economic and social development.
AIFC created a specialised Green Finance
Centre whose activities revolve around
green finance. This means creating the
necessary conditions for the mobilisation
of private capital for green projects and
sustainable business models. It is one
of the main priorities of the Republic
of Kazakhstan to diversify away from
the dependence on fossil fuels and our
mandate, as the Centre is to become the
driver for the transition to a green economy.
In fact, Kazakhstan aims to increase its
share of alternative and renewable energy
to 50% of all energy production by 2050,
an ambitious goal to say the least.
Green financial instruments such as green
bonds, green loans, carbon trading are the
driving forces that will finance the next
wave of renewable energy and energy
efficiency, environmental improvement,
reduction of industrial pollution, clean
transportation initiatives, climate change
mitigation, reforestation, carbon footprint
reduction and zero-carbon strategies.
Green bonds are a component of the
capital market that come as an extension
of the range of financial instruments
and, therefore, opportunities offered to
investors, mostly international, given
that the green agenda is well developed
in Western Europe, North America, and
is gaining momentum in Southeast Asia.
AIFC keeps pace with the times and pays
attention to the development of green
finance on its platform.
The newly established AIFC Green Finance
Centre has the aim of developing and
promoting green finance in Kazakhstan
and the Central Asian region. The Green
Finance Centre provides initial assistance
to potential issuers, investors and market
players on preparations for the issuance
of green bonds on Astana International
Exchange.
Together with world-renowned interna-
tional experts we are working on green
taxonomy, which will serve as the basis for
further development of green financing.