Kazakhstan’s economy, based primarily on the export of fossil fuels, is the largest in Central Asia. Given its abundance of low-cost fossil fuels, Kazakhstan also leads Central Asia in terms of annual greenhouse gas (GHG) emissions. Over 87% of Kazakhstan’s primary energy supply comes from thermal sources compared to 1% derived from renewable sources, excluding large-scale hydro. Energy-related activities account for 85% of Kazakhstan’s annual GHG emissions. Air and water pollution are important and growing concerns.
...the percent of installed generating capacity that thermal power plants account for
The Kazakh government is committed to reducing GHG emissions, and has outlined a set of energy sector priorities to support its goal of reducing the carbon intensity of Kazakhstan’s economy by 50% from 2015–2020. In addition, Kazakhstan will tap US$200 million from the Clean Technology Fund (CTF) to support efforts to modernize its district heating system, improve demand-side energy efficiency, and catalyze transformative investments in latent renewable energy potential. Kazakhstan’s CTF investment plan was drafted under the leadership of the government in coordination with the European Bank for Reconstruction and Development (EBRD), members of the World Bank Group (IBRD, IFC), and key Kazakh stakeholders. CTF financing is expected to leverage an additional US$718 million from public and private sources for transformational projects with the potential to dramatically reduce Kazakhstan’s GHG emissions and improve the quality of life for its citizens.