ASTANA, Kazakhstan, March 19. The World Bank's Board of Executive Directors granted a Development Policy Operation (DPO) loan of $600 million to Kazakhstan, marking the first step in a series of measures aimed at promoting sustainable and equitable economic growth in the country, Trend reports.
According to the WB, the reforms support Kazakhstan's vision to transition towards an economy that is greener, has more competitive markets, and is more inclusive.
As the bank noted, Kazakhstan, being a carbon-intensive economy, is aiming ambitiously to ramp up efforts against climate change and lessen dependence on natural resource extraction. The specific reforms being targeted include boosting renewable energy production, gradually eliminating subsidies for fossil fuels, enhancing energy efficiency, and safeguarding disadvantaged households. These initiatives form part of Kazakhstan's Nationally Determined Contributions, pledging a 25 percent decrease in emissions by 2030 compared to 1990 levels.
"This new partnership with the Government of Kazakhstan supports tangible measures to advance a low-emissions development strategy as part of the global fight against climate change," said Andrei Mikhnev, World Bank Country Manager for Kazakhstan. "It will play an important role in contributing to global public goods and supporting improved prospects for shared prosperity in Kazakhstan."
The World Bank’s financing offers a low-cost and long-term repayment option that is tailored to the financing needs of the government. It will support the government’s reforms in the following areas:
- Develop greener and more efficient energy. The program implements key recommendations from the Country Climate and Development Report (CCDR) to support the reduction of Kazakhstan’s carbon footprint and contribute to global efforts to combat climate change;
- Make digital and financial markets more competitive, and encourage open procurement procedures. The program's goal is to change the rules of the game so that more businesses can supply digital services, to create safeguards for a digital economy, to allocate credit to encourage productivity, and to increase openness in procurement methods. These reforms support market-based approaches that foster innovation and connectedness;
- Protect the poor and support regional development. Targeted reforms aim to strengthen the social protection system and enhance regional development, as part of broader efforts to enhance inclusion and bring greater opportunities to the regions.
