The topic of climate change and green transition featured prominently during the Forum’s various sessions and side events: discussions ranged from financing the green transition to the development of carbon markets; from the role of green hydrogen and nuclear in the energy transition to addressing the so-called energy trilemma – ensuring energy security, accessibility and affordability – on the road to net zero. 

The scale of the challenge, especially for the Central Asian region, is well known. President Kassym-Jomart Tokayev, during his speech at the Forum’s plenary session, referred to climate change as the world’s most existential threat. And Central Asia is one of its frontlines. Even in the optimistic scenario of limiting the temperature rise to 1.5 degrees (and this is a big if), Central Asia is likely to experience temperature rises between 2-2.5 degrees. This will lead to the desertification of large swathes of the region, potentially making them uninhabitable. The frequency and intensity of extreme weather events is on the rise, causing damages equivalent to 1.3 percent of GDP per annum. And it is expected that Central Asia’s two main rivers – the Syr Darya and the Amu Darya – will lose 15 percent of their volume by 2050. 

Decarbonisation and green transition efforts in Central Asia are still very much in their infancy, with coal remaining a primary source of energy. Kazakhstan, for example, generates approximately 70 percent of its electricity from coal but aims for renewables to supply half its power by 2050. This shift is intended to help meet the government’s ambitious goals of reducing the country’s greenhouse gas emissions to 15 percent below their 1990 levels by 2030 and reaching carbon neutrality by 2060. 

For the better part of its three decades of independence, Kazakhstan’s energy market was characterized by a monopolistic structure and prevalence of fossil fuel subsidies. Such price distortions, not reflecting the real costs of environmental externalities, have made it difficult to diversify the types of energy used for the domestic market and promote energy efficiency, and have hindered the introduction of new technologies. 

Yet, in recent years, Kazakhstan has been a frontrunner in the region in announcing decarbonisation targets and adopting green economy strategies and programmes to reduce greenhouse gas emissions. The Concept on transition to a Green Economy was adopted in 2013 and laid the foundation for a completely new development paradigm, whose urgency is now latent. Kazakhstan is working on updating this concept, with new goals and indicators. It was also in that year that Kazakhstan became the first country in the region to have an Emissions Trading System (ETS) in place. In 2021, a new Environmental Code was adopted promoting more efficient technologies, standards and norms. In 2018 it introduced a system of electronic auctions to attract investment in the renewable energy sector and help lower lower tariffs for new renewable and gas-fired electricity capacity. More recently, Kazakhstan has adopted a Low Emissions Development Strategy to reach net zero by 2060. 

Evidently, there is a long road ahead from policy planning and strategy towards implementation and enforcement. It calls for enormous financial and human resources. It requires leveraging the involvement of the private sector and IFIs, increasingly green conscious. For example, as announced by Aida Sitdikova from the European Bank for Reconstruction and Development (EBRD), all their projects as of January 2023 are aligned with the Paris climate agreement and it aims for green financing to account for more than 50 per cent of its annual business volume by 2025. Moreover, the transition will necessitate upskilling and reskilling, with structural changes in the labour market to prevent a skills mismatch. According to the UN Environment Programme (UNEP) statistics, the transition to a green economy will add an estimated 60 million new jobs to the market by 2030. 

At the Forum, it was noticeable to see the presence of renewable companies from the Middle East. Indeed, some of the biggest projects in the field of renewables in Central Asia are funded by countries of the Gulf Cooperation Council (GCC), in particular the United Arab Emirates and Saudi Arabia, countries which like Kazakhstan are blessed with abundant natural resources, and over a decade ago saw the value in betting on renewables and investing abroad, thereby shaping the energy transformation in other regions. Middle East giants Masdar (UAE based) and Saudi ACWA Power have both started operations this year in Kazakhstan’s renewable energy market, the former having signed an agreement to develop a wind energy project with a generation capacity of up to 1 GW; and the later having recently announced the development of a 1 GW wind energy and battery storage project with an initial investment of USD 1.5 billion. 

Apart from its well-known endowment of solar and wind, Kazakhstan is also betting on green hydrogen. Hydrogen will play a critical role in decarbonizing the most polluting sectors, such as mining, transportation, aviation, etc. Late last year, the Kazakh government signed a USD 50 billion deal with European renewables group Svevind to build one of the world’s five largest green hydrogen production facilities in the Mangystau Region, in the country’s west. It aims to start production by 2030 and produce two million tons annually from 2032, the equivalent of 20 percent of the EU’s 2030 target for green hydrogen imports. 

And let’s not forget the Electric Vehicle (EV) revolution. Electric cars require six times the amount of minerals compared to regular cars. Global demand for critical raw materials is set to skyrocket over the next several decades, especially for minerals used in EV batteries. Specifically, demand for lithium is expected to be 12 times greater by 2030 and 21 times higher by 2050. Being richly endowed with critical raw materials, such as tungsten, lithium and rare earth elements, Kazakhstan has an additional important role to play in this aspect of the global green transition. 

While the decline of fossil fuels is inevitable, it is equally true that renewables are not a panacea, as many speakers pointed out at the Forum. CEO of TotalEnergies Patrick Pouyanné indicated that in order to meet the rapidly growing energy demand, one needs to work on two parallel tracks: to continue investing in oil and gas, which will continue to be with us for a few decades to come; and to finance green projects. To illustrate: on the sidelines of the Forum, TotalEnergies signed a 25-year Power Purchase Agreement (PPA) for a 1 GW onshore wind farm combined with a 600 megawatt-hour (MWh) battery energy storage system, which is expected to provide electricity to one million people.

To have a realistic option of achieving net zero, nuclear energy must also be considered. Just like in the EU, where despite the reluctance of various Member States, nuclear has been designated in the EU taxonomy as an environmentally sustainable and transitional energy sources to replace dirtier fossil fuels such as oil and coal. Kazakhstan is considering to construct its first commercial nuclear power plant, building on its role as the world’s largest producer of uranium. At present, Kazakhstan is selecting a potential nuclear supplier from four foreign companies: the China National Nuclear Corporation, Russian State Corporation Rosatom, France’s EDF, and Korea Hydro & Nuclear Power Company. A decision is expected later this year. 

Looking ahead, Kazakhstan should focus on furthering an enabling policy and business environment that supports the renewable uptake. The expansion in wind and solar needs to be accompanied by policies that support the ageing grid infrastructure. There is a need to invest in smarter grids that can handle the intermittency of supply of renewables, when the sun is not shining and the wind is not blowing. Kazakhstan should consider joining the Global Methane Pledge (methane makes up 15 percent of Kazakhstan’s total emissions). And there have been calls for Kazakhstan to consider increasing the scope of its Emissions Trading Scheme to cover more sectors.

From the various discussion at the Astana International Forum, it is clear that Kazakhstan has a golden opportunity to lead the green transition in Central Asia. The challenges are high, but not insurmountable. Therefore, I would like to conclude with the upbeat words of Kazakhstan’s Minister of Natural Resources Zulfiya Suleimenova, who spoke to us on the sidelines of the UN Water Conference, held in New York earlier this year: “When we are speaking about carbon neutrality contributing to the global green transition, we would like to see ourselves as part of the solution for the future, positively contribution to global climate action”.

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The Tajik delegation was led by the Deputy Ministers of Foreign Affairs; Economic Development and Trade; and Finance, alongside the Deputy Chairman of the State Committee on Investments and the Committee on Tourism Development as well as the Deputy Chairperson of the Chamber of Commerce and Industry. Completing the delegation were representatives from companies in Tajikistan’s leading and emerging sectors such as mining, light industry, food processing, textiles and artificial intelligence. They were joined at the Forum by high-level EU officials, including EU Special Representative for Central Asia Ambassador Terhi Hakala, and representatives from leading European businesses across various sectors, some already with a foothold on the Tajik market such as GEG Mining Switzerland and VAST Resources PLC. 

At the Forum, the investment potential of Tajikistan and its attractiveness as a tourism destination were presented to the European business community interested in integrating into the dynamically developing market of Tajikistan, which offers many preferences for partners and is actively working to simplify the procedures for attracting Foreign Direct Investment (FDI) into its economy as well as creating and doing business in the country. 

The Forum was not only a useful platform for information sharing about the investment environment in Tajikistan, and to establish valuable business contacts, but it also witnessed the signature of concrete agreements and cooperation documents. Mr. Najibullo Rajabzoda, Chairman of the Board of Directors of the Tajik Aluminum Company OJSC TALCO and Mr. Andrew Prelea, Chief Executive Officer (CEO) at VAST RESOURCES PLC, signed a memorandum of understanding (MoU) with a total investment of USD 20 million. Tajikistan’s Avesto Group and Belgian PICANOL NV also signed a MoU on cooperation in the field of textiles and clothing. The day following the Forum, during a field visit to INTRACO, specialised in the manufacturing and marketing of animal feed concentrates, a MoU was signed between Amina LLC and Intraco Ltd on cooperation in expanding the production of animal feed additives in Tajikistan.

Tajikistan has experienced tremendous growth during the three decades of its Independence. However, it has not necessarily been inclusive enough to generate the jobs needed by its youthful population. A vibrant private sector can be the engine of inclusive growth, generating jobs and incomes and providing goods, services and solutions for women and men, and thereby have the potential to increase choices and opportunities. Therefore, developing the private sector – with the help of the EU – is critical for sustainable development in the region for the next years and beyond.

Tajikistan is ready for a qualitative step-change in relations with Europe. Since joining WTO in 2013, Tajik-EU trade and investment flows have been steadily flourishing. Despite the pandemic conditions, the foreign trade turnover in 2021 stood at USD 436.5 million – USD 150.4 million more than the previous year.

On its part, the EU has signalled it is ready to increase co-operation with the strategically located country. This can be understood as part of the increased attention the EU has paid to Central Asia (through the new Central Asia Strategy in place since 2019; as well as the recent Global Gateway Strategy which aims to boost smart, clean and secure links in digital, energy and transport).

Indeed, the European Union can play an important role in helping Tajikistan overcome geographic (being a landlocked country facing higher trading costs) and political constraints that have held back the country’s development potential. EU Special Representative for Central Asia, Ambassador Terhi Hakala emphasised the EU’s willingness to increase its engagement with Tajikistan, including by negotiating a next-generation Enhanced Partnership and Cooperation Agreement (EPCA) to replace the existing Partnership and Cooperation Agreement (PCA). Tajikistan is also a candidate country to obtain GSP+ status, which would entail a full removal of customs duties on two-thirds of tariff lines upon the implementation of 27 international conventions related to human rights, labour rights, protection of the environment and good governance.

As to the reasons to invest in Tajikistan, the various presentations highlighted the following: significant investment opportunities across all industries; protection of investor rights; availability of young and highly educated workforces; a new tax code (which has reduced the number of taxes from 10 to 7); relatively low expenses (labour, electricity); availability of Free Economic Zones with a simplified tax regime to help kick-start industrialisation; a secular state & stable government with a long-term vision; and close access to markets with a population of over 1.5 billion (including the People’s Republic of China, Afghanistan, Pakistan, Uzbekistan and others).

Tajikistan has also been making strides in numerous world rankings. It is in the list of top 10 reformers in the 2020 World Bank’s Doing Business ranking.  It also makes the top 10 safest countries according to the American Institute of Public Opinion Gallup; it occupies 6^th place in the world for use of green energy (over 95 per cent of its electricity comes from renewable resources, mostly hydropower) according to the World Bank. As a country unique for its crystal clear lakes and majestic mountains, Tajikistan makes it to the list of top 10 most attractive tourist destinations according to “Globe Spots” magazine.

There is no doubt that the natural beauty of Tajikistan can be a big attraction for tourists. Indeed, mountains cover 93 per cent of its territory, and the country is often referred to as the “roof of the world”. However, reaching the country is still challenging since there are only a few international flights, but the government has now extended visa-free travel for all EU Member States passport holders, and European travel operators are reporting an increased interest in Tajikistan by travellers seeking exotic and untapped destinations.

To conclude, what is clear from the conclusions of the Forum is that both Tajikistan and the European Union are ready for a qualitative and quantitative upgrading in their relationship across all areas, and that the conditions are ripe for this to happen.

L’article Tajikistan tourism potential presented in Brussels est apparu en premier sur Travel Tomorrow.

In December 2022, Medeu skating rink is celebrating its 50^th anniversary. When it was inaugurated in 1972, it became one of the largest artificial unroofed ice rinks in the world, and has been used throughout the decades for a variety of Winter sports including speed skating, figure skating and ice hockey.

During a recent visit to Almaty, I had the pleasure to visit the area and to learn what makes the conditions at Medeu so ideal. The location of the rink nestled in the Malo–Almaty gorge isolates it from strong winds; it enjoys optimal levels of solar radiation and as a result of its high altitude (and consequent lower air pressure), it allows skaters to achieve higher speeds. Lastly, the use of pure glacial water provides for the ideal conditions of the ice. The skating rink is also used for recreational purposes, with skating sessions held throughout the day and on some days in the evenings as well. The skating rink and surroundings provide Almaty families and visitors alike the perfect escape from the hustle and bustle of big city life.

From Medeu, one can take road or the cable car straight to the Shymbulak ski resort, Central Asia’s largest and most advanced skiing centre containing all the necessary infrastructure including hotels, catering facilities, bars, restaurants, etc to consider it a world-class resort.

In preparation for the 2011 Asian Winter Games, which Kazakhstan hosted, extensive reconstruction work was carried out on the ski resort. The total length of the runs has been more than tripled to over 20 kilometres of slopes for all levels, from beginners to advanced. Furthermore, the resort has a range of advantages, including a lengthy snow season and an average seasonal snowfall which exceeds the amount of snow in many alpine resorts in Europe. With the arrival of Spring and the melting of the snow, the area becomes an ecotourism hotspot and a hiker’s paradise.

Tourism recovery after COVID-19

In recent years, the Kazakh government has been actively investing in tourism development and promotion, under the Programme for the Development of the Tourism Industry for 2019-25, designed to increase the quality and quantity of tourist services and products and promote the tourism potential of Kazakhstan as a year-round destination for both domestic and international travellers. To strengthen Kazakhstan’s positioning in the tourism market by 2025, a series of key performance indicators have been set including, inter alia:

• Increase the contribution of tourism to the country’s GDP from 5.7% to 8%;
• Increase the number of international tourists from the 830,000 to 3 million;
• Increase tourism investment from EUR 700 million to EUR 1.4 billion.

Significant work has already been carried out in terms of the simplification of visa procedures, air connectivity links and construction of high-quality accommodation. To boost tourism in the post-pandemic period, Kazakhstan has recently lowered the minimum investment threshold for investors in the tourism industry to be eligible for government subsidies (612.5 million Tenge – EUR 1.082 million, an amount far lower when compared to other industries). Furthermore, this year has seen the easing of COVID-19 related restrictions which had been in place since 2020 for foreign nationals. This means that citizens of 73 countries – including all EU Member States – have the right to visit Kazakhstan (for up to 30 days, in the most cases) without needing to obtain visas or permits from the Interdepartmental Committee (IDC).

L’article Why Medeu and Shymbulak are Kazakhstan’s winter wonderland est apparu en premier sur Travel Tomorrow.