Central Asia Particularly Vulnerable to Climate Risks, Primarily Due to Water Scarcity, Says EDB

By 2050, the available resources in the Syr Darya and Amu Darya basins – the region’s two largest sources of water - situated in southern Kazakhstan and along Uzbekistan’s southern border with Turkmenistan - could decrease by 10% to 15%. Water shortages inevitably impact the region’s agricultural sector, which relies on water as a critical factor in food production, the Eurasian Development Bank (EDB) has stated in a news release. The reduction in wheat yields in seven oblasts of Kazakhstan could result in direct economic losses exceeding U$1.2 billion by 2030. These concerns were highlighted by Conrad Albrecht, Managing Director and Head of the Directorate of Sustainability at the Eurasian Development Bank (EDB) during the recent Seventh North and Central Asia Multistakeholder Forum on the Implementation of the SDGs in Almaty. “Kazakhstan, being the only Eurasian nation to have implemented a carbon pricing system, faces the additional challenge of a potential carbon tax amounting to U$250 million. Most economies in the region rely heavily on carbon-intensive industries, necessitating a transition towards more sustainable production methods”, Albrecht said. He also pointed out that the region’s carbon dioxide (CO2) emissions significantly exceed its contribution to the global economy in terms of both GDP and population. However, countries such as Armenia, the Kyrgyz Republic, Tajikistan and Uzbekistan have a share of global CO2 emissions lower than their share of the world’s population, indicating that the region’s economies are critically carbon intensive. “All countries in the Eurasian region are taking climate change extremely seriously, acknowledge their direct contribution to the global agenda and are ready to make ambitious commitments to decarbonization”, Albrecht stressed. “Nevertheless, Central Asian countries still require substantial support from multilateral development banks, and while climate finance to the region is increasing, it remains significantly smaller compared to other low- and middle-income countries”.

Promoting Sustainable Development in Central Asia: Key Highlights from the Eurasian Development Bank’s Roundtable

According to a press release issued by the Eurasian Development Bank (EDB), on November 16th, 2023, Almaty, Kazakhstan, served as the venue for a critical roundtable hosted by the EDB, titled "Promoting Sustainable Development in Central Asia". This gathering saw the participation of representatives from a wide range of international organizations and multilateral development banks. Attendees included the likes of the World Bank, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Islamic Development Bank, FAO, UNIDO, UNEP, ESCAP, UNDP, the World Health Organisation, the International Fund for Saving the Aral Sea, and CICA. The agenda was packed with discussions revolving around irrigation, water challenges, environmental and social standards of international financial institutions, and case studies that showcased collaborations in project implementation12. The EDB's latest report, "Efficient Irrigation and Water Conservation in Central Asia", was introduced during the roundtable's first session. Nikolai Podguzov, Chairman of the EDB Management Board, underscored the essential interrelationship between water, food, and energy in Central Asia. He declared the development of the region’s water and energy resources as a strategic priority for the EDB. He also expressed concerns over an impending water deficit in Central Asia within the next five years, urging for collective action supported by multilateral development banks3. Tatiana Proskuryakova, the Regional Director for Central Asia at the World Bank, also spoke at the event. She emphasized the importance of sustainable development in Central Asia to international organizations and multilateral financial institutions. She revealed that the World Bank has allocated approximately a quarter of its $12 billion investment portfolio in Central Asia to water, energy, and environmental sectors. This proportion is expected to rise to almost half in the near future4. Following this, Evgeny Vinokurov, EDB Chief Economist, presented the study "Efficient Irrigation and Water Conservation in Central Asia". He proposed a ten-step solution to address the prevalent issues. The steps include establishing an International Water and Energy Consortium; fostering collaboration among multilateral banks; creating a regional cluster to produce irrigation equipment; consolidating efforts to strengthen cooperation with Afghanistan; using PPP instruments; instituting proper water accounting; gradually integrating investment charges into the tariff structure; improving land conditions; implementing digital technology, and leveraging state-of-the-art irrigation technology and laser levelling.