Central Asia may face serious economic losses due to climate change, which may reach a 6.5% annual decline in production by 2060. These figures were announced by Bo Li, Deputy Managing Director of the International Monetary Fund (IMF), at the “New Economic Challenges for Long-Term Development” forum.
According to Bo, the Caucasus and Central Asia region is particularly vulnerable to climate change. Soaring temperatures and increasing frequency of droughts and floods are reducing crops, destroying infrastructure, and lowering living standards.
“According to IMF estimates, if no action is taken to slow down climate change, Central Asia will lose up to 6.5% of its output annually by 2060,” Bo said.
He noted that possible losses could be reduced with joint actions such as reducing carbon emissions, transitioning to a green economy, and adapting to changing climate conditions.
As an example, Bo noted the efforts of Kyrgyzstan, that has already started to increase electricity tariffs and reduce energy subsidies, allowing the country to adapt to climate challenges and create new jobs in the “green” sector.
Many Central Asian countries are taking steps to reform the energy sector and introduce “green” technologies. For example, Kazakhstan is actively cooperating with several countries to develop renewable energy and reform the energy sector. One key example is the partnership with the United States under the USAID Power Central Asia program. This initiative supports Kazakhstan and other Central Asian countries in modernizing energy markets, introducing clean energy, and encouraging private investment in renewable energy.
Uzbekistan is undergoing a major reform of its energy system to reduce subsidies and promote renewable energy. The country plans to increase the share of renewable energy to 25% by 2030, which includes solar and wind energy projects. These measures will help Uzbekistan improve energy efficiency and reduce carbon dioxide emissions.
In Tajikistan, USAID is implementing the Power Central Asia program, which supports energy cooperation in the region and encourages using renewable energy to help reduce dependence on fossil fuels and modernize energy systems.
