Taxonomy of green projects to appear in Kazakhstan

The Astana International Financial Center (AIFC) hosted a seminar for the purpose of developing a taxonomy of green projects for Kazakhstan. According to Dr Ma Jun, an ecosystem made up of a green taxonomy, information disclosure, financial products and incentives is must for an efficient green finance market, including green banking and green bonds.

The event brought together the AIFC Managing Director, Aydar Kazybayev, representatives of the Ministries of Finance, National Economy, Energy, Agriculture, the National Bank of Kazakhstan, the Mayor’s Offices of Nur-Sultan (previously called Astana) and Almaty, as well as a group of international experts led by Dr Ma Jun, who developed China’s green finance system. Serving as Special Advisor to the Governor of the People’s Bank of China and Chairman of the Green Finance Committee of China Dr Ma Jun was engaged in developing a green projects taxonomy in China and Mongolia, a press release of the AIFC reads.

The seminar focuses on developing a detailed taxonomy of green projects for Kazakhstan in the green bank financing and insurance area (taking into consideration local specifics).

A detailed classification is said to meet the requirements of investors and financial regulators.

“A green taxonomy is the basis for developing green financing, because it serves as a unified classification system of economic activities and project categories that are sustainable and green. A detailed classification will be a common and understandable language for all the participants of the financial system, as it meets investors’ requirements to determine the essence of a project, developers by the means of a degree of greenness, as well as these of financial regulators to define and stimulate green financial flows”, Aydar Kazybayev said.

Expert Dr Ma Jun is giving a helping hand to Kazakh colleagues together with his team from China’s Green Finance Committee and Tsinghua University.

“To come up with an efficient green finance market, including green banking and green bonds, an ecosystem made up of a green taxonomy, information disclosure, financial products and incentives must be. Kazakhstan has already developed an impressive roadmap for green and sustainable finance. My team in China’s Green Finance Committee and Tsinghua University are ready to assist our colleagues in Kazakhstan, especially in the green taxonomy field and its application”, Ma Jun said.

Bilateral meetings of the international experts with representatives of Kazakh public bodies took place, at which the estimation and understanding of the current achievements in classifying green projects in the country came under discussion.

The AIFC Exchange previously adopted the green bonds issuing rules, with them defining the categories of green projects, compliance of which is a requirement for the green bonds issuer upon admission on the AIFC Exchange and information disclosure. Such a categorization rests on the International Green Bond Principles and the Taxonomy (Classification) of Climate Bonds, given in the Climate Bonds Initiative.

The Climate Bonds Initiative is an international investor-orientated not-for-profit organization, working solely on mobilising the bond market for climate change solutions. The CBI conducts outreach to inform and stimulate the market, provides policy models and government recommendations, market data and analysis, and also manages the System of Standards and Certification of Climate Bonds.

The AIFC was founded December 2015, after First President of Kazakhstan Nursultan Nazarbayev approved the constitutional statute “On the Astana International Financial Centre” (AIFC). This aims at establishing a leading international centre for financial services. The AIFC focuses on attracting investments in the economy by establishing an attractive investment environment in financial services, developing local capital markets, ensuring their integration with global capital markets.