Green Energy - The Times Of Central Asia

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Green Energy

Astana Forum Signals Growing Momentum for Green Projects

Kazakhstan is positioning itself as a regional hub for green energy, with hydrogen emerging as a central focus. This direction was highlighted at the Second Central Asian and European Forum on Decarbonization Diplomacy, where hydrogen featured prominently on the agenda. At the forum, the Ministry of Energy presented an updated Concept for Hydrogen Energy Development aimed at attracting investment and laying the groundwork for the country’s first large-scale hydrogen projects. “By the end of this year, we expect to adopt legislation that will provide the foundation for hydrogen energy development in Kazakhstan. For us, this is not merely a goal, it is a strategic choice, just like green energy more broadly. Forums like this one help transform ideas into tangible partnerships,” said Deputy Energy Minister Ilyas Bakytzhan. The central question raised at the forum was how to convert growing interest into actual investment. Institutions including the World Bank, European Bank for Reconstruction and Development (EBRD), Asian Development Bank (ADB), United Nations Development Programme (UNDP), and the International Renewable Energy Agency (IRENA) expressed willingness to consider pilot projects in Kazakhstan. However, experts warned that financial commitments will depend on the establishment of long-term hydrogen supply contracts and a transparent certification framework. [caption id="attachment_36294" align="alignnone" width="300"] Deputy Energy Minister Bakytzhan Ilyas, @gov.kz[/caption] While viable business models are still evolving, Kazakhstan has the potential to become a key hydrogen supplier to Europe and Asia. In the early stages, however, building domestic demand, in sectors such as metallurgy, transportation, and energy, will be critical. A balanced strategy that prioritizes both export orientation and local industrialization is seen as essential for long-term project sustainability. Forum participants identified several key challenges: High capital requirements and extended payback periods Integration with renewable energy infrastructure Exposure to volatile global pricing and certification standards The need for green financing tools and risk insurance mechanisms A significant development at the forum was the signing of a cooperation agreement between Kazakhstan’s Ministry of Energy and the Hydrogen Diplomacy Office (H2-Diplo GIZ). The agreement provides access to European technical expertise and advisory support, including the design of financing structures. Experts agree that the next few years will be decisive. Kazakhstan must show that it can provide a stable and predictable investment climate. The Astana forum made clear that international institutions and private investors are already showing interest. The determining factor now will be the quality and credibility of the regulatory framework the country establishes.

Bilateral Cooperation

Cholpon-Ata to Host ‘Day of German Economy in Kyrgyzstan’

On August 26, Kyrgyzstan will host one of its most prominent international business events of the year, the Day of German Economy in Kyrgyzstan, alongside the 4th meeting of the Kyrgyz-German Business Council. The events are organized by the National Investment Agency under the President of the Kyrgyz Republic. According to the agency, the forum will take place at two venues in the resort city of Cholpon-Ata: the Rukh Ordo Cultural Center and the No. 2 State Residence of the President of the Kyrgyz Republic. The event is expected to bring together high-level participants, including government officials, business leaders, industry associations, and investors from both Germany and Kyrgyzstan. Welcoming remarks will be delivered by Adylbek Kasymaliyev, Chairman of the Cabinet of Ministers of Kyrgyzstan, and Professor Reinhold Krämmel, Honorary Consul of Kyrgyzstan in Munich and Deputy Co-Chairman of the Kyrgyz-German Business Council. The forum will feature two thematic panel sessions: "Energy Projects for German-Kyrgyz Economic Cooperation" - focusing on opportunities in green energy and infrastructure development. "Export Potential and Logistics in the Transition Period: Opportunities of the Middle Corridor" - examining evolving trade routes and modern logistical challenges. In addition, Kasymaliyev will attend the meeting of the Kyrgyz-German Business Council. Discussions will center on the theme: “Kyrgyz-German Trade, Economic and Investment Cooperation: Finance as an Integral Part of the Partnership.” The primary aim of the event is to deepen economic dialogue, enhance trade and investment relations, and strengthen the strategic partnership between Kyrgyzstan and Germany.

Green Energy

Uzbekistan, Azerbaijan, and Kazakhstan Launch Joint Venture for Green Energy Corridor

Energy companies from Uzbekistan, Azerbaijan, and Kazakhstan have launched a joint venture to support the development of the Caspian Green Energy Corridor, according to the press service of National Electric Networks of Uzbekistan. The new company, “Green Corridor Alliance,” was officially established on July 1 in Baku. It brings together three national power operators: Azerbaijan’s Azerenerji, Kazakhstan’s KEGOC, and Uzbekistan’s National Electric Networks. The joint venture is expected to play a pivotal role in exporting green electricity to Europe while bolstering long-term energy security across the region. Officials have highlighted the corridor’s strategic importance in advancing sustainability goals. “This initiative is important for our energy security and green growth,” the Uzbek side stated. As previously reported by The Times of Central Asia, the Caspian Green Energy Corridor is supported by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). In April, the three countries signed a Memorandum of Understanding with both institutions in Baku to initiate a feasibility study. The corridor aims to enhance cross-border electricity trade and promote renewable energy use throughout Central Asia and the Caspian region. The long-term objective is to integrate the power grids of Uzbekistan, Kazakhstan, and Azerbaijan, creating a streamlined route for clean energy exports to Europe. The agreement builds on a strategic partnership formalized by the presidents of the three countries during the COP-29 climate summit held in Baku in November 2024.

Environment

Kazakhstan Considers “Green” Tax on Plastic Packaging

Azhar Sagandykova, a deputy in Kazakhstan’s Mazhilis, has proposed introducing a “green” tax on non-environmentally friendly packaging. She announced the initiative during the IX Eurasian Business Forum Green Energy & Waste Recycling Forum (GEWR-2025). The proposed tax would apply to packaging materials that are difficult to recycle or non-biodegradable, such as polyethylene terephthalate (PET) bottles, plastic bags, and other polyethylene-based containers. “It is time to seriously consider introducing a green tax on non-environmentally friendly packaging and directing the funds collected towards the development of waste recycling,” Sagandykova stated. According to the United Nations Development Programme (UNDP), Kazakhstan produces approximately 4.5 million tons of waste annually. Of this, 80% is generated by the municipal sector, while 20% comes from industry, healthcare, and other sectors. Only about 26% of the total waste is recycled. These figures were confirmed by Zhomart Aliyev, Kazakhstan's Deputy Minister of Ecology and Natural Resources, who also addressed the forum. Speaking on the sidelines of the event, Aliyev commented on the complexities of implementing such a tax. “It is very difficult to say at this stage what a green tax on a particular product should look like. It could affect virtually all sectors of the economy. We have begun preparatory work, but it is still at an early stage. We need to calculate the figures for the whole country in detail,” he said. In addition to the tax proposal, Sagandykova advocated for a dedicated law on waste management to clarify responsibilities, define infrastructure needs, and introduce government incentives. “The existing Environmental Code contains a number of vulnerabilities and does not cover all aspects of waste management. Therefore, within the framework of a working group in the Mazhilis, we intend to review the systemic approach to solving this problem,” she explained. During the summer, deputies plan to collect proposals from businesses, environmentalists, and civil society stakeholders. These suggestions will inform a draft bill to be discussed in the fall. Aliyev added that the government is already working on a comprehensive waste management concept, excluding radioactive waste, which remains under the jurisdiction of the Atomic Energy Agency. The concept, commissioned by the prime minister, is expected to be finalized by September, when a decision will be made on whether a standalone waste management law is necessary. As previously reported by The Times of Central Asia, Kazakhstan had aimed to phase out plastic packaging and tableware by 2025. However, due to a lack of sufficient alternatives in domestic production, the government was forced to abandon the timeline.

Environment

Kazakhstan Under Pressure to Address Environmental Crisis

The United Nations Green Climate Fund (GCF) has pledged $280 million to Kazakhstan for environmental projects, underscoring the country's increasingly urgent ecological challenges. Experts warn that Kazakhstan faces a widening crisis as environmental degradation accelerates. Toward a “Green” Transition Minister of Ecology and Natural Resources Yerlan Nyssanbayev announced that the GCF will allocate substantial funding to Kazakhstan to support initiatives in renewable energy, electric transport development, and the adoption of low-carbon industrial technologies. “These investments will accelerate the country's transition to a sustainable, environmentally friendly economy,” Nyssanbayev stated. The minister said that Kazakhstan prepared a national program for GCF funding in 2024, comprising seven major initiatives. These included reducing greenhouse gas emissions in the energy sector, strengthening rural water supply systems, modernizing livestock farms, and promoting private-sector green financing. The program's total budget exceeds $1 billion, with $630 million potentially financed by the GCF. Additionally, the European Bank for Reconstruction and Development (EBRD) continues to back renewable energy projects in Kazakhstan. Eleven projects with a combined capacity of 330 MW are planned by 2027; nine have already secured financing. A Mounting Environmental Toll Kazakhstan continues to struggle with serious environmental challenges, many rooted in the Soviet-era legacy, and others emerging from modern development pressures. The country faces desertification, flooding, frequent wildfires, and escalating urban air pollution, particularly in cities like Almaty, Pavlodar, and Karaganda. On June 5, the government announced the formation of a Biodiversity Protection Fund at a forum in Astana. Akylbek Kurishbayev, President of the National Academy of Sciences, emphasized the urgency of regional collaboration in biodiversity conservation amid intensifying climate and anthropogenic pressures. Deputy Minister Nurlan Kurmalayev highlighted biodiversity preservation as a key component of environmental security and sustainable land use, calling for cross-border cooperation. In parallel, the national initiative “Green Kazakhstan” is advancing afforestation efforts across urban and rural areas, alongside waste management programs, ecosystem restoration, energy efficiency campaigns, and public education on environmental stewardship. Environmental Disaster Zones: The Caspian and Aral Seas Two of Kazakhstan's most pressing ecological crises involve the shrinking Caspian and Aral Seas. The Caspian Sea's water levels are falling dramatically. According to the Ministry of Ecology and Natural Resources, levels in 2024 are expected to drop by 22 cm in the northeast and 29 cm in the eastern Kazakh sector compared to 2023. Scientists warn of continued decline due to reduced inflows from the Volga and Ural rivers and rising global temperatures. TCA has previously reported about mass die-outs of Caspian seals in recent years. Vadim Ni, founder of the Save the Caspian Sea movement, described the crisis as triple-faceted, climate, ecological, and economic. “Its level is falling at an unprecedented rate, 2 meters over the past 20 years. By century’s end, up to one-third of its surface could be lost,” he said, warning that the shallow northern shelf, vital to the ecosystem, is especially at risk. Pollution, overfishing, and unchecked oil extraction are cited as critical threats. In April 2025, Mazhilis Deputy Sergei Ponomarev addressed a parliamentary inquiry to Prime...

Green Future

Central Asia’s Green Energy Dream: Too Big to Achieve?

Although most Central Asian nations are heavily dependent on fossil fuel production and exports, they are aiming to significantly increase the use of renewable energy, hoping to eventually become crucial suppliers of so-called green electricity to Europe. Achieving such an ambitious goal will be easier said than done, given that developing the green energy sector in the region requires massive investment. What Central Asian states – struggling to attract long-term private capital into clean energy projects – need is financing for projects that modernize power networks, improve grid stability, and enable cross-border electricity flows. These upgrades are essential for large-scale renewable energy deployment and regional trade in power. Most actors in Central Asia seem to have taken major steps in this direction. In November 2024, at the COP29 climate conference held in Baku, Kazakhstan signed several deals worth nearly $3.7 billion with international companies and development institutions to support green energy projects. Neighboring Uzbekistan, according to reports, has attracted more than €22 billion ($23.9) in foreign investment in renewable energy, while Kyrgyzstan, Turkmenistan, and Tajikistan – which is aiming to generate all its electricity from green energy sources by 2032 – have developed strategies to help increase their renewable potential. But to turn their goals into reality, all these nations will need funding – whether from oil-rich Middle Eastern countries, China, the European Union, or various international financial institutions. Presently, the development of the Caspian Green Energy Corridor – which aims to supply green electricity from Central Asia to Azerbaijan and further to Europe – remains the region’s most ambitious project. According to Yevgeniy Zhukov, the Asian Development Bank's (ADB) Director General for Central and West Asia, this initiative is a strategic priority for Kazakhstan, Uzbekistan, and Azerbaijan. “While the prospect of exporting green electricity to Europe is part of the long-term vision, the core goal of the initiative is to accelerate green growth within the region,” Zhukov told The Times of Central Asia. Together with the Asian Infrastructure Investment Bank, the ADB is funding a feasibility study for this proposed transmission corridor. The study will assess the technical and economic viability of such a system, along with the environmental and regulatory requirements. In the meantime, the ABD is expected to continue funding other green energy projects in the region. The financial entity, according to Zhukov, invested $250 million in Uzbekistan in 2023 to support renewable energy development and comprehensive power sector reforms, while in other Central Asian countries, it remains “firmly committed to driving the green energy transition.” “For instance, in Tajikistan we are exploring the potential to co-finance the Rogun Hydropower Project alongside the World Bank and other international partners. In Kyrgyzstan, our focus has been on supporting foundational reforms in the energy sector, including strengthening the policy and regulatory environment to attract private investment in renewables. In Turkmenistan, we’ve launched a total of $1.75 million technical assistance initiative to help lay the groundwork for future renewable energy development,” Zhukov stressed, pointing out that these efforts are part...