Context
Kazakhstan is characterized by high consumption of fossil fuels. Due to subsidies, energy prices are unreasonable low, limiting demand for alternative energy. As a result, in 2013 the President of Kazakhstan issued the "Green Economy Concept" which among others is targeted to reduce the energy intensity of the GDP by 25% by 2020 (compared to 2008). However, legislative initiatives and measures to reduce energy consumption in industries have not yet been successful. This is related to lack of expertise and missing sector-specific incentives for investment in energy and resource efficiency.
Goal
The Project is meant to support political decision-makers in building institutional and technical capacities to realize the goals of the Green Economy Concept and NDCs and raising the country’s ambitions. It should enable the Ministry of Ecology, Geology and Natural Resources as well as the Ministry of Economy to create effective incentives and framework conditions for improving energy and resource efficiency. They should also be able to conduct broad stakeholder consultations for implementing the green economy concept and to make use of effective structures for inter-ministerial coordination and cooperation. This will ensure transparent and knowledge-based policy making and will increase the legitimacy, effectiveness and efficiency of policies.
Approaches
The Project covers three areas of activity. First, the project is giving advice to decision-makers in the ministries on suitable policies for implementing the Green Economy Concept. It supports the revision of the Concept and the linking of the Green Economy process to the country’s NDCs. At the same time, the Project supports its partners with policy impact assessments and macroeconomic modeling of social, environmental and economic impacts of mitigation scenarios. Secondly, the project is strengthening dialogue with the private sector to improve energy and resource efficiency. The purpose of the systematic dialogue is to integrate the needs and views of the private sector into policy-making. Last but not least, the project strengthens knowledge among stakeholders in Kazakhstan and Central Asia on the potential of energy and resource efficiency measures, as well as on the barriers that must be overcome. At regional forums, the project informs Central Asian countries about measures for implementing the Green Economy Concept and NDCs in Kazakhstan and advises on respective measures in their countries.
Outcomes
At the institutional level, the Project will have strengthened the capacity of decision-makers in the ministries to develop laws and policy programs for the transition to a green economy, using policy impact assessments and macro-economic modelling, and relying on effective and efficient coordination among ministries. In addition to building capacity at the ministerial level, the project also supports the creation and implementation of a multi-stakeholder consultation process with the private sector.
The industry as the primary target of the green economy concept and related NDC policies is involved in the policy-making process to address their needs and minimize opposition and resistance. The results of the project are made available to all other Central Asian countries via regional events.