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GCF clears $110m allocation to EBRD’s Kazakhstan Renewables Framework

CTBR Staff Writer Published 04 October 2017

The Green Climate Fund (GCF) has approved $110m allocation to the Kazakhstan Renewables Framework of European Bank for Reconstruction and Development (EBRD) for the construction and operation of renewable energy projects.

The framework, approved by the EBRD in December 2016 for €200m, supports investments in solar, wind, small hydropower and biogas energy sources.

It will also support modernization and strengthening of the electricity grid to improve the integration of renewable energy sources.

The GCF contribution consists of $106m in concessional finance and $4m in technical assistance grants.

The Fund was established in 2010 by the 194 countries who are parties to the United Nations Framework Convention on Climate Change (UNFCCC) as part of the convention’s financial mechanism. 

The EBRD plans to increase its green financing from 24% of its annual business investment in the 10 years up to 2016 to 40% by 2020, under the Green Energy Transition (GET) approach, which was launched in 2015.

The EBRD has so far invested €7.3bn in Kazakhstan, of which €1.7bn was in sustainable energy and resources.  

Kazakhstan Minister of Energy Kanat Bozumbayev said: “Kazakhstan has recognized the need for transition to a green economy. We are contributing to global efforts under the Paris Agreement to address climate change. The country has set an ambitious Nationally Determined Contribution, under the agreement, with an emissions reduction target of 15% below 1990 levels by 2030.”

Despite rich in natural resources, Kazakhstan remains heavily dependent on fossil fuels for power generation. Coal-fired plants account for 72% of total power generation, despite the country’s vast potential for renewables.