• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, May 9
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025

    ‘Wait Them Out’: John Kennedy Tells Larry Kudlow One Lie He Suspects China’s Telling US

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»How to Increase Green Finance Inflows in Central Asia
Finance

How to Increase Green Finance Inflows in Central Asia

July 25, 2023No Comments6 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
How to Increase Green Finance Inflows in Central Asia
Share
Facebook Twitter LinkedIn Pinterest Email
Advertisement

The world is moving towards green, low-carbon development. Green investments are growing constantly. In 2022, investments in the global energy transition exceeded $1 trillion and, for the first time ever, were equal to fossil fuel production costs. Renewable energy sources attracted one of the largest shares of capital. Growing interest in the global green agenda could help developing countries attract international support through climate-related expertise and financing.

Climate change is a crucial issue for Central Asia. The region is among the most vulnerable to climate change. Central Asian economies face two types of climate-related risks. Regarding physical risks, there are adverse climate change consequences in the region such as the drying of the Aral Sea, a shortage of water resources, food security risks, and increased frequency of extreme weather events. Climate change is becoming an increasingly severe challenge for the Central Asian agriculture sector. Transition risks (related to regulatory changes in global markets) are also significant for the region. After the imposition of the EU carbon border tax in 2026, Kazakhstan exporters may lose up to $250 million in revenues per year. 

The levels of greenhouse gas (GHG) emissions differ significantly among Central Asian countries. The exports of Turkmenistan and Kazakhstan are highly dependent on hydrocarbons, and as a result, they produce high GHG emissions (22.45 and 19.8 CO2 equivalent tonnes, respectively) through fugitive emissions. Conversely, the Kyrgyz Republic and Tajikistan demonstrate the lowest levels of GHG emissions (3.03 and 2.25, respectively) due to their substantial reliance on hydropower in the energy sector.

Per-capita greenhouse gas emissions in CO2 equivalent, tonnes, 2021

Source: Our World in Data.

Enjoying this article? Click here to subscribe for full access. Just $5 a month.

See also  Chevron Announces Leadership Shakeup As Q2 Earnings Tumble Nearly 50%

There are four key “pain points” in the region’s sectoral structure that produce the highest volume of GHG emissions and should be in focus: fugitive emissions, electricity and heat production, agriculture, and buildings. These sectors produce about 80 percent of GHG emissions in Central Asia. Coal-fired power generation continues to account for a significant share of the region’s total greenhouse gas emissions. It leads to high emissions in the electricity and heat production and buildings sectors. For example, the electricity and heat sector produces 42.5 percent of GHG emissions in Kazakhstan, while buildings account for 37.5 percent in the Kyrgyz Republic.

Greenhouse gas emissions by sector in CO2 equivalent, 2019

Source: EDB calculations based on Climate Watch.

Advertisement

The region needs more investment in the development of new generation capacity, including hydro power plants, solar and wind power plants, the construction and upgrade of water treatment facilities, and so on. Climate finance instruments provided by multilateral development banks (MDBs) for adaptation and mitigation could further boost the low-carbon transformation of the region. 

Aside from financing, the MDBs may also help develop climate projects and assess climate risks and opportunities. They can arrange syndicated loans, provide technical assistance, share the expertise required for feasibility studies, mitigate risks or offer guarantees for their reduction, and this will encourage private investment in green projects. They also focus on ways to see whether climate finance or ESG practices are effective and create long-term impact. MDBs’ cooperation on these issues is also important.

In 2021, major MDBs provided more than $81.7 billion in climate finance worldwide, of which $50.7 billion was channeled to low- and middle-income countries. In 2021, Central Asian countries received $1.9 billion in climate finance, or 2.2 percent of the total amount, in comparison with Central Asia’s 0.4 percent share of global GDP. From 2015 to 2021, Central Asia obtained $8.9 billion from MDBs as green finance. In particular, Uzbekistan received almost half of the total amount – $4.4 billion (49.1 percent). Reforms initiated in Uzbekistan in 2017 (currency and price liberalization, customs and tax reforms, etc.) drove up the incoming flows of climate finance. Kazakhstan received $2.6 billion (29.4 percent), Tajikistan received $1.1 billion (12.1 percent), and the Kyrgyz Republic received $0.8 billion (9.2 percent). Turkmenistan received almost nothing (0.2 percent).

See also  Hong Kong tech firms woo talent from Southeast Asia with bigger pay packages amid brain drain

Central Asian countries could attract more external climate finance due to the region’s high physical climate risk. Without external sources, the green transformation of Central Asia will be a burden for national budgets. Implementing green projects, low carbon technologies, and digital solutions to prevent climate change and protect the environment are highly capital-intensive measures. For example, estimates suggest that the countries of the region may face costs ranging from 100 percent of national GDP (Kyrgyz Republic) to 300 percent (Kazakhstan) in order to achieve carbon neutrality. There are some ways, however, to attract green finance to the region for its low-carbon transformation.

First, the countries could provide more high-quality bankable projects and develop connections with MDBs operating in the region. For example, Turkmenistan has enormous potential to expand ties with MDBs, in particular for upgrading the extractive industry and reducing fugitive emissions. Uzbekistan could serve as a successful example of how Central Asian countries work with MDBs.

Second, the Central Asian governments could focus on investments in renewable energy sources. Central Asia has great potential for hydro, solar, and wind power generation. At the same time, the countries should continue to develop balancing power capacities such as gas and nuclear generation. In particular, Central Asia has huge potential to develop nuclear power generation, inasmuch as Kazakhstan is the world’s largest producer of natural uranium and a major manufacturer of nuclear fuel components.

Third, external support could work together with domestic policymaking. National regulation is equally important, such as green taxonomies. For example, Kazakhstan has already adopted its own taxonomy of green projects, while Kyrgyzstan is in the process of developing taxonomies for green finance. 

See also  Are Foreign Investors Returning to Southeast Asia in 2023?

Enjoying this article? Click here to subscribe for full access. Just $5 a month.

Fourth, supranational support from multilateral institutions could be useful for enhancing regional competencies. For instance, the countries could share regional experience and successfully implemented measures, as well as spreading energy-efficient technologies in the region. Improvement of energy efficiency is key to reducing carbon intensity and should be part of the green transformation strategies of the agriculture, industry, and buildings sectors.

Fifth, moving towards a more regional ESG (environmental, social, and governance) finance market could be helpful to attract private capital to green projects, as well as for issuing ESG bonds. The Astana International Financial Center could ensure the development of green finance policy and green financing instruments both in Kazakhstan and the Central Asian region as a whole.  

Finally, governments, international development institutions and the private sector need to work together in combating climate change. Taking control of climate risks would take more financial resources, more effective national policies, and more cooperation. Then it could become a valuable factor for long-term sustainable economic growth.

Advertisement

MDBs’ total climate finance of Central Asian countries, $ billion

Asia central finance Green increase Inflows
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Ending China’s De Minimis Exception Brings 3 Benefits for Americans

April 17, 2025

The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

April 17, 2025

Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

April 17, 2025

How China’s Companies Are Responding to the US Trade War

April 16, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Are Flea And Tick Collars Safe For Your Dog’s Skin And Fur? Understanding Risks And Benefits

April 1, 2025

‘Bleeding Across Borders’: EU’s Censorship Law Is Pushing Big Tech To Censor Americans, Experts Say

October 18, 2023

Biden, DeSantis Cross Paths in Dueling Silicon Valley Fundraisers

June 20, 2023

Is Kim Kardashian Hooking Up With Khloe’s Baby Daddy Ex Tristan Thompson

July 24, 2023
Don't Miss

Trump Announces First Post-Tariff Trade Deal

Business May 8, 2025

President Donald Trump announced Thursday the U.S. has reached a trade agreement with the U.K.,…

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025

Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

May 7, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,110)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,626)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

Biden Admin Blames Medical Staff for In-Custody Death of Migrant Child in May

June 4, 2023

We’re all crazy with money, advisor says. How to manage your psyche

June 18, 2023

Neighbor Files $600,000 Lawsuit Against William H. Macy After Landscapers Allegedly ‘Destroyed’ His Trees

April 8, 2023
Popular Posts

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.