The European Bank for Reconstruction and Development (EBRD), which became fully aligned with the Paris Agreement at the start of 2023, is helping Kazakhstan to reduce energy consumption, promote the use of renewable energy sources and support local businesses in adopting environmentally friendly practices.
Hundreds of companies and thousands of households across the country will be able to modernise production, increase their energy efficiency and improve their climate resilience thanks to a new financing facility launched by the EBRD today.
The Bank is providing funds of up to US$ 150 million (in KZT equivalent) to participating financial institutions under the Kazakhstan Green Economy Financing Facility II (GEFF Kazakhstan II) for on-lending to individuals, private-sector companies and small and medium-sized businesses across the country.
The facility will also offer financing to vendors and producers of high-performing green goods and equipment, including those covered by the online Green Technology Selector, available on the GEFF Kazakhstan II website.
Supported by the Climate Investment Funds (CIF), GEFF Kazakhstan II will also promote the development of local markets for green technologies and equipment, which will contribute to the growth of the green economy, make green technologies more affordable and create new job opportunities. It will facilitate investment in climate change mitigation and adaptation projects, advance the circular economy, and promote the decarbonisation and competitiveness of the Kazakh economy.
GEFF Kazakhstan II also incorporates the EBRD’s Gender SMART approach, promoting equality of opportunity and the increased role of women in Kazakhstan’s economy. Participating financial institutions will take on board a new investment culture driven by gender equality and offer gender-sensitive financial products.
GEFF Kazakhstan II builds on the GEFF Kazakhstan pilot, which has been in place since 2020, supported by the Government of Austria and the Global Environment Facility (GEF). Since its inception, the project has attracted more than 1,500 clients and channelled over US$ 30 million into energy- and resource-efficiency projects around the country.
It also has helped to reduce annual CO2 emissions by more than 200,000 tonnes and achieve primary energy savings of more than 573,000 MWh. The funds were provided through Bank CenterCredit, Shinhan Bank and KMF, a microfinance organisation. More than 60 per cent of these projects involved women-led businesses and were in rural areas.
With more than €10 billion invested in the country to date through 304 projects, Kazakhstan is the EBRD’s largest and longest-running banking operation in Central Asia.