Green finance in Kazakhstan’s context: market overview

Abstract

The adoption of the concept of “sustainable development” necessitated the search for ways to achieve sustainable goals, the definition of directions for the transformation of economic relations, and the emergence of a new term: “green economy”, or “green finance”. Through the transition to a “green” economy and “green” financing, the Government of Kazakhstan will be able to fulfill an important task – the development of a new financial system. Financing of green projects contributes to improving the quality of life in society; aims to preserve natural resources and the environment. The main purpose of the scientific article is to determine the sources of investment to finance the “green” economy of Kazakhstan today. The following research methods were used: general scientific research methods, and quantitative methods of statistical, causal, and comparative data analysis for analyzing the current state of green finance in Kazakhstan and identifying problems with green finance. Research results show that in the Concept for the transition of Kazakhstan to a “green” economy, the corresponding investments are estimated at approximately $3-4 billion, or about 1% of GDP per year. The most active green projects are being developed in Akmola, Atyrau, Kostanay, and Zhambyl regions. Research findings suggest that a “Green” transformation of the economy is impossible without the implementation of the principles of responsible investment (PRI). The results of the study will be helpful for entrepreneurs and business entities engaged in the green finance industry or for government agencies responsible for the development of green infrastructure in Kazakhstan.