The Global Green Finance Index (GGFI) was launched by the Z/Yen Group and Finance Watch in March 2018. The index charts the progress of the world’s financial centres towards a financial system that delivers sustainable development, and values people and the planet as much as profit.
The index is created by combining questionnaire assessments from financial services professionals, NGOs, regulators, and policy makers with instrumental factor analysis to produce rankings of green financial centres on a variety of indicators.
For each edition of the GGFI, analysis is conducted on a range of financial centres across the world. Financial centre assessments are collected via an online questionnaire.
AIFC started working on entering the index last year and succeeded hitting the first place in Eastern Europe & Central Asian region in GGFI 7 (April 2021). Overall Nur-Sultan ranks 57th in the world.
“Entering the GGFI index, moreover, being on the first line among Eastern Europe and Central Asia, is an important indicator for AIFC meaning that the financial centre is moving in the right direction. The financial system and country’s economy are systematically moving towards sustainable development, and the AIFC will continue to promote progress in this direction,” said AIFC Governor Kairat Kelimbetov.
For the development of green finance, the AIFC has established the Green Finance Centre, which is engaged in the implementation and development of sustainable financing instruments and attracting investments in environmental and social projects in Kazakhstan and Central Asia. The Centre’s shareholders are the AIFC Authority and the Eurasian Development Bank.
The AIFC Green Finance Centre supported the very first issuance of green bonds in Kazakhstan and the region last August. 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. The businesses – engaged in renewable energy, waste management, energy efficiency, smart lighting, energy saving services and many other sectors according to the Green Taxonomy – will be entitled to up to 50% discount on coupon and loan rates.
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The Astana International Financial Centre was created by the initiative of the First President of the Republic of Kazakhstan, Leader of the Nation, Nur-Sultan Nazarbayev as part of the “100 steps to implement five institutional reforms” national program. The Centre’s development strategy until 2025 was approved by the Management council of the AIFC during the council’s meeting on July 2, 2020. In accordance with the strategy, the vision of AIFC is in becoming the leading financial centre in the region that includes Central Asia, the Caucasus, EAEU countries, western China, Mongolia, and Eastern Europe.
The mission of the AIFC is to assist the sustainable and long term development of the region. As the head of state Tokayev noted, “AIFC, with its unique opportunities, can act as a universal platform that connects the countries in the region.” The strategic directions for sustainable development of the AIFC include the development of a circular economy, financial technologies and a “digital financial centre”.
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