Key obstacles to attracting sustainable green financing in Central Asia identified

The underdeveloped capital market has been identified as the primary obstacle to sustainable "green financing" in Central Asia, according to Manas Gizhduaniyev, Chairman of the Astana International Financial Centre (AIFC) Green Finance Center.

According to Report, speaking at the "Climate Finance Landscape in the South Caucasus and Central Asia" event during COP29, Gizhduaniyev emphasized the crucial role of taxonomy in the realm of "green bonds".

In 2020, Kazakhstan lacked taxonomy for green financing, he said, adding that to address this issue, the AIFC Green Finance Center developed a taxonomy based on international standards. Following suit, countries like Kyrgyzstan, Azerbaijan, and Uzbekistan have also laid the groundwork for their respective taxonomies, he noted, adding tha, however, the absence of a developed capital market remains a significant hurdle, limiting the availability of financial instruments such as "green bonds" and hindering the overall growth of the capital market.