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.
