The AIFC Green Finance Centre summed up the results of 2021 as a part of the 4th annual meeting of the AIFC Green Finance Advisory Council. The event, chaired by the Professor Alexander Van de Putte, was attended by permanent members of the Advisory Council (list of members).
Aidar Kazybayev, CEO of AIFC Green Finance Centre delivered a welcoming speech at the meeting, noting the increased attention to the issue of social financing and the Centre's plans in the field of social taxonomy development.
The Council members heard information about the achievements of the Green Finance Centre for 2021, congratulating the Centre on increasing the volume of the total sustainable finance market in Kazakhstan to $ 250 million dollars. The Council also noted the importance of the Centre's role as the regional office of Green Investment Principles for BRI, and the recognition of the Centre by the International Capital Markets Association (ICMA) as a provider of external evaluation of sustainable bonds.
Sean Kidney, CEO of Climate Bonds Initiative (CBI), noted the positive developments in green finance around the world, particularly the increase of the green bond market size to $1.7 trillion, and the CBI’s expectations to increase the market size to $3 trillion by the end of 2022.
Dr. Ma Jun, Co-Chair of the G20 Working Group on Sustainable Finance, and Michael Sheren, Senior Adviser of the Bank of England, noted the sustainable finance development trends in China and the UK. In both markets, there is a shift towards transition finance.
According to Mr. Issenov, Deputy Chairman of the Board of the EDB, since 2017, the EDB has financed more than $540 million worth of renewable energy projects with a total installed capacity of about 500 megawatts. In 2020, the EDB Board approved its Renewable Energy Program for 2020-2024, envisaging funding of up to $600 million for renewable energy projects with a capacity of 500 megawatts.
Following the discussion, the Chairman and Council members noted the importance of the inclusiveness and sustainability concepts, as well as social and transition financing in providing companies with the capital necessary to change modern business models.
The work in these areas will be continued by the Center in 2022, along with further work on the development of social taxonomy with the assistance of Dr. Ma Jun.
Reference:
The Astana International Financial Centre (AIFC) is an independent jurisdiction that started operations in 2018. In accordance with the Development Strategy until 2025, the key focus of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and the Caucasus.
The AIFC Green Finance Centre is a subsidiary organisation of the AIFC Authority and the Eurasian Development Bank, aimed at introduction and development of sustainable finance instruments and attracting of investments in environmental and social projects in Kazakhstan and Central Asia.
The AIFC Green Finance Centre supported the very first issuance of green bonds and first verified green loan in Kazakhstan. Also, the Centre introduced definitions of green finance and green taxonomy (a classifier of economic activities and projects that meet technical selection criteria) in the national environmental legislation. The new legislation provides incentives for entrepreneurs who use green finance instruments.
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