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AIFC GREEN FINANCE CENTRE

Aigul Kussaliyeva

Managing Director

Global Green Finance Leadership Program (GFLP): Scaling-up Sustainable Finance in Southeast Asia

​

November 28 – December 1, 2022 Kuala Lumpur, Malaysia

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TAXONOMY OF GREEN PROJECTS OF THE REPUBLIC OF KAZAKHSTAN

Renewable energy (wind, solar, geothermal, hydro, bioenergy, hydrogen production);

Energy efficiency (improving energy efficiency at existing and under construction facilities);

Green buildings (green buildings, related systems and building materials, green infrastructure);

Pollution prevention and control (air quality,

soil);

Sustainable use of water and waste

Sustainable agriculture, land use, forestry,

biodiversity conservation and ecological tourism;

Clean transport

FINANCIAL GOV INCENTIVES FOR GREEN PROJECTS IN KAZAKHSTAN

Under The National Project (gov program) for the development of entrepreneurship, issuers of green bonds and green loan borrowers are eligible for government financial support:

​

Green Bonds

Green Loans

Maximum green bond/loan eligible size

​

3 billion tenge ($6,3 million)

Subsidy size

The final rate for the borrower/issuer is 6%, the amount of the subsidy depends on the base rate of the National Bank of Kazakhstan

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NEXT STEP FOR GREEN TAXONOMY: Updating of taxonomy to possibly include the following sectors

  • Include Category "Low pollution energy" with sub-sectors "Generation of electricity and heat from gas, Fuel switch", and "Manufacture of equipment for nuclear energy”, “Construction and operation of nuclear power plants” within Sector “Alternative sources, fuel switch”

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  • Include the "Omir" National Green Building Certification Scheme as an alternative threshold criteria in the Green Buildings category

​

Taxonomy subsectors that lack national standards in threshold criteria:

    • Green and energy efficient buildings - standards for energy consumption during development, sustainability in buildings and construction works, building design

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    • Energy Efficiency - Energy Consumption and Energy Saving Standards

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    • Sustainable Agriculture and Sustainable Tourism - Eco-labels - Eco-labeling standards for organic products and

organic agriculture, sustainable tourism, hotels

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257

million USD - the social bond

market in Kazakhstan

SUSTAINABLE FINANCE MARKET IN KAZAKHSTAN

million USD - sustainable finance market in Kazakhstan

188

million USD - the volume of the green finance market in Kazakhstan

65%

35%

69

share of green bonds

share of green loans

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SUSTAINABLE FINANCE MARKET IN KAZAKHSTAN

0

5 000 000 000

10 000 000 000

15 000 000 000

25 000 000 000

​

​

20 000 000 000

All issuances

5

3

3

Number of instruments

Green bond

Green loan

Social bond

3

2

1

3

1

1

Number of issuances by issuers

Asian Development Bank Damu Fund

Development Bank of Kazakhstan

Eurasian Development Bank

Halyk Bank

Samruk Energy

28 450 000 000

52 572 523 000

29 400 000 000

0

10 000 000 000

20 000 000 000

30 000 000 000

40 000 000 000

50 000 000 000

60 000 000 000

Green loan

Green bond

Social bond

Volume, KZT

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SOCIAL FINANCE MARKET IN KAZAKHSTAN

Issuer

Category

Use of proceeds

Amount, KZT

Issue date

Maturity date

Coupon rate, %

Eurasian Development

Bank

Social

bonds

Bank’s social projects in Kazakhstan

20 000 000 000

05.11.21

05.11.24

10,6

Damu Entrepreneurship development fund

Social bonds

Financing of SMEs through STBs and/or microfinance organizations and/or leasing companies in the context of the COVID-19 pandemic with the possibility of maintaining and/or creating jobs

1 000 000 000

15.09.21

15.09.26

11,9

Asian Development Bank

Social bonds

Reducing gender inequality and promoting the empowerment of women and girls

8 400 000 000

15.02.21

17.12.30

10,15

Asian Development Bank

Social bonds

Reducing gender inequality and promoting the empowerment of women and girls

14 000 000 000

25.02.22

17.12.30

11,0

Total volume of social bonds issued in Kazakhstan is 43.4 bln. KZT (~91 mln. USD)

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Draft Taxonomy of social projects of Kazakhstan has been developed

  1. Creating accessible basic infrastructure
    1. urban environment and rural settlements
    2. transport
    3. digitalization
  2. Ensuring access to socially significant services
    • healthcare
    • education
    • culture, art, tourism
    • sport
  3. Affordable housing and infrastructure
    • affordable and comfortable housing
    • housing and communal infrastructure
  4. Support for employment and entrepreneurship
    • employment
    • entrepreneurship and self-employment
  5. Food security and sustainable food service delivery systems
    • food security and access to food
  6. Development and creation of prosperous and fair socio- economic conditions
    • Social responsibility

Principles

  • Projects under the Social project classification (taxonomy) are funded through social and other bonds
  • Social projects are directly aimed at solving or mitigating a specific social problem and / or achieving positive social outcomes for the target population
  • No significant negative social or environmental side effects (“Do No

Significant Harm”): a social project should not be implemented to the detriment of other areas

Outline of the taxonomy of social projects

Social project selection and verification tool for social, PPP loans and bonds

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Address: Nur-Sultan city, Mangilik el avenue 55/16, С-3.1 block Call-centre: +7 (7172) 64 74 10

Email: greenfinance@aifc.kz

Web-site: https://gfc.aifc.kz/