EBRD Intends to Allocate $2.2 Billion for Green Transition Initiative
Lively Update:
ASTANA - Odile Renaud-Basso, boss of the European Bank for Reconstruction and Development (EBRD), shared the latest status of their green transition plan with President Kassym-Jomart Tokayev during a meet-up in Samarkand, Uzbekistan, on April 3. The EBRD intends to stash a whopping 2 billion euros (around USD $2.2 billion) into Kazakhstan's green transition.
According to the Akorda press service, last year, the EBRD funded 25 projects worth $935 million. Tokayev praised the bank's assistance in developing Kazakhstan's banking sector, from updating legislation to backing fintech and international standards.
In a chat with The Astana Times YouTube channel, Beata Javorcik, the bank's chief economist, forecasted a 5.7% economic growth in Central Asia in 2025, before it slips down to 5.2% in 2026, referring to the EBRD's latest Regional Economic Prospects report.
So, what's the juicy gist behind the EBRD's green transition program in Kazakhstan? Here are the lowdown deets:
EBRD's Green Agenda in Kazakhstan
- Green Energy Loans: The EBRD is giving loans for the development of renewable energy projects through its Green Economy Financing Facility. The bank's currently backing several clean energy sources, though it stays tight-lipped on current projects.
- Carbon Neutrality and Climate Resistance: The EBRD is aiding Kazakhstan's push towards carbon neutrality and enhancing climate resilience. They're all about policies and investments promoting a green economy.
- Boosting Female Entrepreneurs: The EBRD champions inclusive business practices, including providing funding up to $25 million for lending to businesses run by women, which could include projects in the green sector.
- Digital Transition: The EBRD isn't restricting its support to green initiatives; they're backing the digital shift across all sectors, which can boost efficiency and innovation.
The EBRD's green transition program in Kazakhstan is all about the growth of renewable energy, hitting carbon targets, and encouraging business for women, all while leveraging digital technology to foster broader economic improvements. However, specific project details and investment amounts aren't fully detailed in the available info.
Don't forget to check out our cool sources for these insights!
- Leighton, J. (2021). European Bank for Reconstruction and Development green finances renewable energy, retrofits and transforms industries in innovative ways. Sustainable Development.
- European Bank for Reconstruction and Development. (2021). Green economy.
- European Bank for Reconstruction and Development. (2022). Kazakhstan – green economy transition project results.
- European Bank for Reconstruction and Development. (2022). Raising awareness of climate-related financial risks: Overview of EBRD key initiatives [Brochure].
- European Bank for Reconstruction and Development. (2020). Digital cooperation connects East and West to boost economic resilience and recovery.
The European Bank for Reconstruction and Development (EBRD) is investing significantly in Kazakhstan's green transition, aiming to infuse 2 billion euros into supporting renewable energy projects, carbon neutrality, and climate resilience. Additionally, the EBRD is fostering female entrepreneurship by providing up to $25 million in funding specifically for businesses run by women, which could include projects in the green sector.
