The document discusses aligning policies in Kazakhstan to mobilize green finance and achieve its climate goals. It notes Kazakhstan's ambition to reduce GHG emissions by 15-25% by 2030 but that further policies are needed to achieve this. It provides examples of Kazakhstan's existing climate policies and suggests assessing policy coherence across sectors to scale up green investment and transition from brown to green infrastructure in line with its green economy and climate targets. Next steps proposed include developing a framework to diagnose policy misalignments and prioritize corrective actions.

1. ALIGNING POLICIES
FOR MOBILISING GREEN FINANCE IN
KAZAKHSTAN
Takayoshi Kato
Policy Analyst,
Green Growth and Global Relations Division,
OECD Environment Directorate
The first Policy Dialogue
under the Kazakhstan GREEN Action Platform
Astana, 20 October 2016

2. • Ambitious goals of Kazakhstan’s Green Economy
Concept
• The goals reiterated/reinforced in Kazakhstan’s INDC
(Intended Nationally Determined Contribution)
– 15% reduction in GHG emissions by 2030 below 1990
– 25% reduction in GHG emissions for the same period
(Conditional on international support)
• Need for concerted effort to address complex
economic, political and social factors.
2
Context

3. 0
100
200
300
400
500
1990 2013 2030(BAU) 2030
(ETS, PV and
Wind)
2030
(INDC: -15%)
2030
(INDC: -25%)
• Example: Even if the Kazakh ETS were implemented and
some solar and wind power plants were installed,
further emission reductions would still be needed for
achieving the INDC targets.
3
Deep decarbonisation needed for
achieving the INDC targets
Sources: Based on Suleimenov et al (2016) Exploring pathways for fulfilment of Kazakhstan’s INDC targets; and
Government of Kazakhstan (2016) The 2nd Biennial Report to the UNFCCC;
Figure: GHG emission scenarios under different targets (MtCO2e)

4. • They need to:
– Be stable and predictable
– Provide a strong price on carbon, so that low
carbon investments are competitive with carbon
intensive technologies (e.g. coal)
– Provide strong regulatory support in areas where
price signals are not efficient, such as in energy
efficiency measures
– Target support for the uptake of low-carbon
technologies
4
Core climate policies are necessary…

5. • Kazakhstan has made progress in developing a range of
climate policies -now need effective and continuous
implementation
5
Turning climate policies into actions
Pillars Policy measures
(1) Carbon pricing Emission Trading Scheme (pilot)
Feed-in-Tariff System
(2) Regulatory
measures
Mandatory energy audit
Mandatory planning of energy
efficiency measures
(3) Support for
technology
development
Green Technology Centre (planned)
Source: Based on GoK (2015), Intended Nationally Determined Contribution, and GoK (2013), Concept for Transition of the
Republic of Kazakhstan to Green Economy,
Table: Selected examples of climate policies in Kazakhstan
5

6. FUEL and ENERGY
But not just climate policies that affect
climate targets
TECHNOLOGY
COMPETITION
FISCAL
SOCIAL
TRANSPORT
INVESTMENT
CLIMATE
6

7. • Some experiences of the OECD countries:
– Existing policy frameworks are not automatically
aligned with climate goals.
– Decades of coal, oil and gas use have made their
marks on policy frameworks.
– Diagnosing policy misalignment and improving
coherence help to move towards more cost-
effective climate action and higher ambition
over time.
• In a long-run, assessing new laws and regulations
would help to avoid policies that could create
future carbon lock-in.
7
Why policy coherence will help to achieve
climate/development targets?

8. • Certain coherence exists at the target level:
e.g. the Green Economy Concept and the Kazakh INDC
• Worth also looking into misalignments and coherence at
the policy-level
– Is the Kazakhstan’s current investment framework
collectively in favour of “green” investment (e.g. the level of
fossil fuel subsidies)?
– Are targets towards a green economy mainstreamed into
national development and investment plans?
– How should carbon pricing be put in place so that it
stimulates green finance?
8
Assessing policies to scale up green
finance

9. • Bilateral & multilateral (public) finance:
climate consideration mainstreamed into certain sectors
(e.g. energy), but not all.
• Need for further clarity how domestic and private
investments are being mobilised in line with climate/green
economy goals.
9
Scaling up infrastructure investment, and
Shift from “brown” to “green” needed
Figure: Share of climate-related development finance in total development finance
(From international public sources to Kazakhstan in 2013-2014)
Source: OECD (forthcoming), Financing climate action in Eastern Europe, the Caucasus and Central Asia
%
Share of
climate-
related
finance

10. 1. Develop and agree on a methodological framework to
diagnose misalignments.
2. Select policy domains to start the diagnosis with:
(Energy; investment; taxes/subsidies; technology; transportation etc.)
3. Conduct an assessment/diagnosis.
4. Organise a cross-ministerial workshop(s) to discuss
the results.
5. Determine priority actions to be taken for better policy
alignments.
(in the light of the INDC/ Green Economy Concept/ Concept for
Fuel and Energy Sector Development, etc.)
10
Possible next steps (for discussion)

11. Thank you.
http://www.oecd.org/env/outreach/eap-tf.htmhttp://www.oecd.org/environment/
Takayoshi Kato
Takayoshi.KATO@oecd.org

12. • OECD (2015), Aligning policies for a Low-carbon Economy
• OECD (forthcoming), Financing climate action in Eastern
Europe, the Caucasus and Central Asia
• OECD (forthcoming), Multi-dimensional country review of
Kazakhstan
• OECD (2015), Policy Guidance for Investment in Clean
Energy Infrastructure
12
Relevant OECD work (examples):