Readiness
«International Center for Green Technologies and Investment Projects» in 2022 was determined by the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan by the National Executive Agency for the Readiness project «Further strengthening the Kazakhstan’s programming capacity, institutional support for the enhancement of GCF direct access and development of green finance system» (hereafter – GCF). Project Readiness is implemented jointly with the United Nations Office for Project Services (UNOPS). Project Readiness aims to further strengthen the country’s capacity and create an enabling environment for greater participation in the GCF and attracting climate investment.
Project Readiness aims to further strengthen the country’s capacity and create an enabling environment for greater participation in the GCF and attracting climate investment. The project will enhance the successful completion of the GCF accreditation process by direct access applicants and thus open access to GCF funds, and strengthen sustainable finance practices in the Kazakhstan financial sector by creating an enabling institutional environment and building the capacity of banking sector representatives.
Will consider a system for monitoring and forecasting natural disasters in connection with climate change, using the example of moraine lakes.
Green Climate Fund (GCF)
The Green Climate Fund (GCF) is a key financial mechanism to support countries in combating and adapting to climate change. Established in 2010 by the United Nations Framework Convention on Climate Change (UNFCCC), the fund finances projects to reduce greenhouse gas emissions, adapt to climate change and sustainable development.
GCF funding is available to accredited organizations, including international and national organizations. In this regard, the GCF has developed a readiness program aimed at:
Enhancing the capacity of national institutions to effectively interact with the GCF
Strengthening the capacity of countries in the field of climate
Development of necessary institutional mechanisms
Creating favorable conditions for obtaining direct access to GCF funds
GCF invests in four broad areas:
Readiness project in Kazakhstan
The implementation of the Readiness project in Kazakhstan is an important step in preparing the country for the effective use of funds from the Green Climate Fund. It will allow Kazakhstan to expand its climate capabilities, develop sustainable and innovative solutions, and strengthen its place in the international community fighting climate change. Kazakhstan, being a country with rich natural resources, attaches special importance to environmental sustainability issues and recognizes the need to take urgent measures to combat climate change.
The program covers various aspects, including strengthening institutional and technical capacities, as well as building the capacity of financial sector participants in the field of sustainable financing tools and the implementation of ESG reporting and impact assessment tools.
Main components of the project
Further strengthening the capacity of the NSO in order to create a fully functional and effective permanent coordinating body to support appropriate cooperation between government agencies and the GCF;
This component of the project provides for the establishment of a permanent coordination and advisory council as an official institution ensuring systematic coordination between the NSO and many stakeholders; and updating its mandates, rules and procedures, including the no objection procedure, taking into account recent regulatory and institutional changes.
Institutional support and capacity building for direct access applicants to assist them in completing the accreditation process;
In order to ensure full national access to GCF financing, it is necessary to be accredited, including direct access entities. This requires an expanded understanding of the GCF accreditation processes and standards, a comprehensive analysis of potential applicants’ compliance with direct access to the GCF and ESS fiduciary standards. Going through these processes will help direct access entities to receive support in building the necessary expertise and capacity, as well as apply for GCF accreditation. Within the framework of the Readiness project, three organizations for the preparation of accreditation in the GCF will be supported.
Building the capacity of local stakeholders, including implementing agencies, civil society organizations and private sector actors, to facilitate the planning, programming and implementation of GCF-funded activities;
This component focuses on seven priority sectors to ensure resilience to climate change and reduce carbon dioxide emissions. The project will help companies improve their competence in obtaining loans from international financial institutions, including the GCF; and improve their competence in moving to sustainable development paths (it will help companies implement decarbonization plans). In addition, the project will identify industry leaders, strengthen organizational structures by establishing decarbonization offices, and create a mechanism to disseminate best decarbonization practices to the corporate sector.
Development of a national regulatory framework for sustainable financing: a roadmap for sustainable financing, a green loan reporting system (for example, the inclusion of a green loan attribute, which is a characteristic or feature measured for each observation (record)) and E&S risk Management guidelines for the banking sector;
This component is aimed at improving the regulatory framework in the field of finance, including, in particular, disclosure and reporting requirements, and developing a concept for better integrating green finance issues into existing banking sector operations.
This component of the project is aimed at:
- assessing existing obstacles to the development of green finance and supporting the financial regulator in developing the concept of a green finance strategy to support Kazakhstan’s efforts to create a sustainable financial system consistent with its climate and green development goals,
- creating a reliable green finance reporting system to support the wider adoption of sustainable development tools financing.
Bringing the financial system into line with the principles of sustainable development will require actions across the entire financial system and the participation of all actors, including banks, stock exchanges, ARRFM and NBK.
Improvement and approval of the Country Program in accordance with the GCF procedures, as well as analysis of the disaster forecasting system;
The Readiness project provides for the development of a country program with a clear framework for priority investments in the field of climate change and a portfolio of projects, as well as strengthening sustainable financing practices in the financial sector of Kazakhstan by creating a favorable institutional environment and building the capacity of financial institutions. The updated Country Programme should reflect changes in the country’s vision and the strengthening of environmental regulation and policy. The country programme and its main directions should also be updated in accordance with the updated ONMS.
It is planned to consider a disaster forecasting system that will provide information about the possibility and strength of impending threats. The use of remote sensing systems at all stages of research and observations will make it possible to assess the scale of natural disasters and make important and accurate management and anti-crisis decisions in the future. It is also possible to use the system to identify specific facilities, zones and population groups that need priority assistance.