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CAREC Countries Endorse New Vision to Fight Climate Change Together

Member countries of the Central Asia Regional Economic Cooperation (CAREC) program committed to working together to cut greenhouse gas emissions and build resilience to climate change. “We endorse the Regional Action on Climate Change: A Vision for CAREC to help countries implement their commitments under the Paris Agreement”, said a joint ministerial statement issued at the 22nd CAREC Ministerial Conference held on November 30th in Tbilisi. The statement was endorsed by ministers and high-level officials from Azerbaijan, the People’s Republic of China, Georgia, Kazakhstan, the Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. “I am confident this shared Vision will enhance the CAREC program’s impact on this most critical climate challenge facing the subregion”, said Asian Development Bank (ADB) President, Masatsugu Asakawa. “I look forward to concrete progress on bringing forward more climate projects - including in renewable energy, sustainable agriculture, efficient water use, economic diversification, and strengthening supply chains - to improve the region’s climate resilience and adaptation”. The Vision emphasizes the importance of energy transition and the improved use of renewable energy sources, strengthening the regional electricity trade, deploying innovative financing solutions, and investing in climate-resilient infrastructure and policies. It calls for strengthened collaboration and coordination with the program’s development partners in supporting the region’s climate agenda. A scoping study published earlier this year showed climate change is expected to have severe impacts in the CAREC region, including higher-than-average temperature rises, water scarcity, expanded desertification, and glacial melting. To address water issues in the region, CAREC will support countries to improve their expertise and capacities in transboundary water management, water productivity, and to invest in more efficient irrigation systems to boost agricultural productivity. CAREC will also support efforts to decarbonize transport and continue deepening regional connectivity with efficient transport technologies and infrastructure. Other priority areas include developing climate-smart cities with electrified mass transit systems and promoting climate and disaster resilience through regional risk management and financing initiatives. The CAREC program is a partnership of countries and development partners working together to promote sustainable development, accelerate economic growth, and reduce poverty. The ADB hosts the CAREC secretariat.

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By 2035, the Capacity of Hydroelectric Power Plants in Central Asia Will Increase by 8,900MW

By 2028-2029, Central Asia will face a permanent and persistent water scarcity, with a deficit estimated to be between 5-12 cubic kilometers annually. At the same time, the demand for electricity in Central Asia is expected to increase significantly over the next ten years, Nikolai Podguzov, Chairman of the Eurasian Development Bank (EDB) Management Board said this week at the World Hydropower Congress in Bali. "In the Central Asian region, hydropower plays a key role not only in generating electricity, but also in regulating river runoff for irrigation purposes,” Podguzov stated. “In this regard, the countries of the region are interested in the multipurpose use of their water resources, and wish to attract investment to develop water resources potential". According to Podguzov, the construction of new hydroelectric power plants with reservoirs and the modernization of already functioning HPPs will both serve to reduce the impact of climate change and ensure the steady economic and social development of the region, which is highly reliant on affordable, environmentally-friendly energy and a sustainable irrigation supply. "According to our estimates, Central Asia is one of the few regions in the world where the hydropower potential has been developed by less than 25%”, Podguzov said. “Currently, there are more than 80 hydroelectric power plants operating in the region, with a total installed capacity of about 14,000 MW. In the period up to 2035, it is planned to increase the capacity of local hydroelectric power plants by 8,900 MW through the modernization of already functioning HPPs and the construction of new ones. The largest new projects being implemented include the construction of the 1,860 MW Kambarata HPP-1 in the Kyrgyz Republic, and the 3,600 MW Rogun HPP in Tajikistan”.

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EDB Proposes Ten Steps to Preserve Irrigated Land Potential and Support Water Conservation in Central Asia

As outlined in a press release on the EDB website, in the summer of 2023, Central Asia was faced once again with water shortages, which have a significant impact on agriculture. The sector relies on irrigation, which consumes up to 80% of available water, and has a poor track record with regard to the efficient use of water resources. The irrigation infrastructure is over 50 years old. More than half of all irrigated land has become salinized, and 40% of water is lost through irrigation canals. A new Eurasian Development Bank (EDB) study entitled “Efficient Irrigation and Water Conservation in Central Asia” outlines ten practical steps for preserving irrigated land potential and promoting water conservation. The list includes four recommendations for adoption at a regional level and six at a national level. The measures are designed to save enough water each year to support sustainable development. Implementing the measures will require collaboration between governments, farmers and multilateral development institutions. The need for urgent action is intensified by the anticipated reduction in the flow of the Amu Darya River. Water deficit is a key structural constraint to socio-economic development in Central Asia. This region is among the most vulnerable to climate change, with temperatures rising at a faster rate than the global average. Periods of drought and low water are becoming more frequent, and the hydrological patterns of rivers and groundwater supplies are undergoing change. Glacier areas have been diminishing rapidly, with a 30% decrease over the last 50 years. Climate change is leading to reduced river flows at a time when the region’s demand for water is growing rapidly. The primary solution to the water deficit lies in improving irrigation practices. Agriculture in Central Asia is the largest consumer of water, with irrigation accounting for 100.4 km3 of the total 127.3 km3 (80%) of water used in the region in 2020. Historically, irrigation has played a vital role in developing agriculture and ensuring food security in the region. Central Asia boasts 10.1 million hectares of irrigated land, representing approximately 2.9% of the world’s total. This irrigated land generates nearly 66% of the region’s gross agricultural output in terms of value. However, Central Asia’s irrigation infrastructure is highly degraded and technically inadequate. It lacks the equipment needed for metering and distributing water for irrigation and controlling its use in the field. The average age of the irrigation infrastructure is over 50 years. Up to half of irrigated land is salinized. Water use in agriculture is inefficient, with 40% of water lost in the irrigation canal system. A commitment to conserving water appears to be the only solution to protecting the potential of irrigated land and food security in Central Asia. This shift in approach is imperative not only because of climate change and escalating water demand, but also to mitigate the anticipated decrease in the flow of the Amu Darya River from Afghanistan. By 2028, the combined effects of climate change, low-water periods and the commissioning of the Kosh-Tepa Canal in...

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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”.

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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.