AIFC Kazakhstan aims to promote the principle of green investment among financial institutions in Central Asia

BAKU, Azerbaijan, December 7


Astana International Financial Center (AIFC) Green Finance Center aims to promote the Green Investment Principle (GIP) among financial institutions in Central Asia, AIFC told Trend.

According to the AIFC, given the importance of mobilizing financing from the private sector, Kazakhstan’s new Environmental Code, adopted on January 2, 2021, contains standards that encourage companies to use green financing instruments.

“As part of the adoption of the Environmental Code of Kazakhstan, the AIFC submitted draft standards accompanying the Company Code of Kazakhstan, which clarify the measures for economic stimulation of enterprises to the help from green loans and green bonds. This includes subsidizing credit rates and coupons for the implementation of green projects. Currently, as part of the implementation of these financial support data measures, modifications and additions have been made to the business support and development program “Business Roadmap-2025”, through which the above mechanism will be implemented, ”AIFC said.

It is also noted that the AIFC Green Finance Center is currently working on the implementation of a national green taxonomy in Kazakhstan.

“Green taxonomy is a unified system of classifying economic activities, project categories and assets, aimed at improving the efficiency of the use of existing natural resources, reducing the negative impact on the environment and increasing energy efficiency.To fully implement this mechanism, the AIFC Green Finance Center and the International Center for Green Technologies and Investment Projects have completed the development of a green taxonomy, which is in the final stages of development. ‘endorsement by the government of Kazakhstan,’ said the AIFC.

In addition, noted the organization, the AIFC Green Finance Center, in collaboration with the United Nations Environment Program Finance Initiative (UNEP FI), is working on the development of ESG (Environmental, Social, and Corporate Governance) for AIX listed companies (Astana International Exchange).

It is expected that voluntary ESG disclosure obligations will be introduced in the short term and mandatory ESG disclosure obligations in the medium term. An ESG structure can target mandatory disclosures by large public companies on a compliance or explanatory basis.

“In June of this year, the AIFC Green Finance Center became the regional office for the Green Investment Principles for the Belt and Road Initiative (GIP) in Central Asia. The GIP was adopted with the aim of creating an international network to improve the environmental risk management of investments under the Belt and Road program. projects and scale up sustainable financing in the region ”, concluded the AIFC.

Marianne R. Winn