Kazakhstan's Administration is working on creating updated purchasing guidelines to address and minimize ecological issues.
Kazakhstan's Green Agenda:
Kazakhstan is moving towards more environmentally-friendly procurement practices, aiming to enhance the efficiency and sustainability of state spending while minimizing the environmental impact of public works and services.
Total government contracts for goods, works, and services reached approximately $19.7 billion in 2023. Previously, environmental concerns were secondary in state spending. Now, authorities are grappling with the need to address the Soviet era's environmental degradation, such as radiation from nuclear testing and fuel processing, the disappearance of the Aral Sea, and a multitude of other challenges. Global warming poses a significant threat, potentially worsening existing problems and creating new ones, including a growing water scarcity.
In late 2022, President Kassym-Jomart Tokayev instructed the government to create "green-friendly" procurement regulations. Based on the Finance Ministry's draft framework, the new rules consider quality control, environmental impact, and cost in awarding government contracts.
On May 15, the lower house of the Kazakh parliament, the Mazhilis, approved the Finance Ministry's bill in its second reading. Supporters hope the new guidelines will secure parliamentary approval and the president's signature by July 1, though this timeline might not be attainable.
In February 2024, Kazakhstan joined the European Union's SWITCH-Asia program. Through this partnership, Astana can receive international expert assistance in developing sustainable procurement mechanisms. SWITCH-Asia grants incentivize companies and governments to implement cleaner technologies and more sustainable practices across multiple sectors, including agriculture, textiles, freight transit, tourism, and residential buildings.
SWITCH program representatives highlight that procurement decisions often revolve around obtaining goods and services at the lowest cost. However, this focus can have long-term repercussions for society and the environment. By working with officials, the program encourages a broader perspective that accounts for the indirect environmental and social implications of purchases.
Sanjay Kumar, a senior expert on green public procurement for the program, stated, "Any product or service purchased by the government has unintended negative impacts. ... By demanding sustainable and greener products, the government can reduce these unfavorable impacts."
Kumar added, "It's crucial to make a shift from current practices and adopt a policy that encourages integrating environmental and social sustainability criteria and requirements into purchasing decisions. Such a shift will help the government achieve long-term socioeconomic growth and mitigate environmental challenges."
These challenges are increasingly significant with each passing year. For example, the volume of hazardous waste produced in Kazakhstan across all sectors has grown by 84% in 2022 compared to the previous year.
Some government agencies have already begun implementing green measures. Nurbibi Aldanova, a Trade Ministry official, reported at a SWITCH-Asia meeting in March that Kazakhstan is working on new waste utilization, environmental labeling, and management standards as part of its strategy to attain carbon neutrality by 2060. The new procurement guidelines will reflect these standards.
At the same meeting, Enlik Mukanova, an expert at the Ministry of Industry and Construction, disclosed amendments implemented in 2022 that require state agencies to purchase durable goods with high energy efficiency ratings. However, the current system is far from perfect, as a recent audit showed that only 63% of the items procured by state agencies complied with energy-efficiency standards.
SWITCH-Asia program representatives plan to educate Kazakh procurement officials from various state agencies in adhering to global green standards, with the objective of ensuring that forthcoming legislation's objectives are attained in practice.
Additional Insights:
- Circular Economy and Green Construction: Kazakhstan has expressed support for implementing circular economy principles and green construction standards, including developing green architecture and regulatory frameworks for sustainable growth and regional integration[1].
- Green Economy Concept: Since 2013, Kazakhstan has been working under the Green Economy Concept, which serves as a foundation for sustainable development. This concept likely influences procurement practices indirectly by promoting green technologies and practices[3].
- Public Procurement Law: As of January 1, 2025, a new Law "On Public Procurement" will take effect, introducing mechanisms for promoting domestic development. Although the law does not directly address "green-friendly" procurement regulations, it suggests a broader framework for public spending that could accommodate environmental considerations[2].
- International Cooperation and Funding: Kazakhstan benefits from international initiatives like the EBRD's Kazakhstan Green Economy Financing Facility II, which fosters green investments and energy efficiency. These programs support the integration of green practices across various sectors, which might encompass procurement[5].
To address environmental concerns more directly, Kazakhstan might consider implementing policy tools like Green Public Procurement (GPP) and Extended Producer Responsibility (EPR), which are being adopted in other regions to promote more circular economies[3]. These tools could help align procurement practices with environmental goals.
- Kazakhstan's Green Agenda includes strategies for enhancing the efficiency of state spending, emphasizing environmental impact, quality control, and cost in government procurement practices.
- Global warming and subsequent climate change pose a significant threat to Kazakhstan's environment, potentially exacerbating existing problems and creating new ones, including water scarcity.
- The European Union's SWITCH-Asia program provides international expert assistance to Kazakhstan, helping Astana develop sustainable procurement mechanisms that reduce negative impacts on society and the environment.
- The new procurement guidelines, once implemented, will encourage the integration of environmental and social sustainability criteria and requirements into purchasing decisions, helping the government attain long-term socioeconomic growth and mitigate environmental challenges.
- To further address environmental concerns and promote a circular economy, Kazakhstan might consider implementing policy tools like Green Public Procurement (GPP) and Extended Producer Responsibility (EPR), which are being adopted in other regions to foster environmental goals in procurement practices.
