About Readiness-II in Kazakhstan
The implementation of the "Readiness-II" project in Kazakhstan marks a significant stride toward preparing the nation for the effective utilization of resources from the Green Climate Fund. This endeavor holds the potential to amplify Kazakhstan's prowess in climate-related pursuits, foster the development of enduring and inventive solutions, and solidify the nation's standing within the global consortium dedicated to combating climate change. Kazakhstan, enriched with abundant natural resources, holds a steadfast commitment to environmental sustainability and recognizes the exigency of prompt action against climate change.
The progression of Readiness-II underscores Kazakhstan's resolute commitment to fostering sustainability, and its active engagement with this program serves as a testament to the nation's proactive stance on global climate transformation.
Main components of the project:
1. Further strengthening the capacity of the NDA to establish a fully functional and effective coordination mechanism to support appropriate cooperation between government agencies and the GCF;
This project component entails the establishment of a permanent coordination board, serving as an official institution. This board's primary purpose is to facilitate methodical coordination between the NDA and a multitude of stakeholders. Furthermore, the project aims to revise and modernize its mandates, regulations, and protocols, encompassing the no-objection procedure. These enhancements are intended to align with the latest regulatory and institutional advancements.
2. Institutional support and capacity building for direct access entities to assist them in completing the accreditation process;
In order to facilitate comprehensive nationwide access to funding from the Green Climate Fund (GCF), the imperative lies in successfully attaining accreditation, which is inclusive of entities seeking direct access. This endeavor entails an enhanced grasp of the GCF's rigorous accreditation protocols and benchmarks. Furthermore, it mandates a thorough assessment of potential applicants to ascertain their alignment with the GCF's criteria. The successful completion of these procedural stages will play a pivotal role in empowering entities with direct access to garner requisite support for augmenting their proficiency and capabilities, in addition to enabling their eligibility for GCF accreditation.
3. 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 is centered around seven key sectors prioritized for enhancing climate resilience and mitigating carbon dioxide emissions. The initiative aims to enhance companies' capabilities in securing loans from global financial institutions, notably the Green Climate Fund (GCF). It further seeks to bolster companies' proficiency in transitioning towards sustainable developmental trajectories, facilitating the execution of robust decarbonization strategies.
Furthermore, the project endeavors to identify trailblazers within industries, reinforce organizational frameworks through the establishment of dedicated decarbonization offices, and institute a mechanism for widespread propagation of optimal decarbonization practices across the corporate landscape.
4. Developing a national regulatory framework for sustainable finance: a sustainable finance roadmap, a green credit reporting system (for example, including a green credit attribute, which is a characteristic or feature measured for each observation (record)) and E&S risk management guidelines for the banking sector;
This project component has been strategically designed to enhance the regulatory framework within the finance domain. It focuses on crucial aspects such as refining disclosure and reporting requisites. Additionally, its scope encompasses the formulation of a comprehensive approach for seamlessly integrating matters of green finance into the ongoing operations of the banking sector.
The objectives of this project component are as follows:
- Conduct an exhaustive analysis of prevailing impediments hindering the progress of green finance. Concurrently, provide substantial support to the financial regulatory body in devising a well-defined strategy for green finance. This strategy aims to bolster Kazakhstan's endeavors in establishing a financially sustainable system that aligns harmoniously with its climate and green development aspirations.
- Institute a robust reporting framework dedicated to green finance. The primary intent behind this framework is to facilitate the broader adoption and implementation of tools associated with sustainable finance.
Realizing the alignment of the financial system with the core tenets of sustainable development mandates a collective effort encompassing the entirety of the financial landscape. This collaborative approach necessitates active engagement from diverse stakeholders, encompassing entities such as banks, stock exchanges, the ARRDFM, and the NBK.
5. Improvement and approval of the Country Programme in accordance with GCF procedures, as well as analysis of the disaster forecasting system;
The "Readiness-II" project aims to facilitate the formulation of a comprehensive country program, encompassing a well-defined framework for prioritized climate change investments and a project portfolio. Additionally, the project seeks to enhance the practice of sustainable financing within Kazakhstan's financial sector. This endeavor involves establishing a conducive institutional environment and enhancing the capacity of financial institutions.
The revised country program is expected to incorporate alterations in the nation's perspective and the reinforcement of environmental regulations and policies.
Furthermore, the project intends to explore the implementation the early warning and forecasting system. This system will furnish insights into potential threats, including their magnitude and probability. Leveraging remote sensing systems throughout various stages of research and monitoring will facilitate an accurate assessment of the extent of natural disasters. Subsequently, this data will underpin pivotal decisions in crisis management and administration. The system can also be utilized to pinpoint specific locations, zones, and demographic segments necessitating prioritized assistance.