OECD - Measuring Green Finance Flows in Kazakhstan

Credible statistical information can serve as a powerful tool for the Republic of Kazakhstan (Kazakhstan) to plan for, and monitor progress on, its transition to a green economy. The government of Kazakhstan, particularly the Committee on Statistics under the Ministry of National Economy, has been working on the quantitative and qualitative characteristics of indicators related to the countrys green economy transition. Those indicators include information on investment and current (or operational) expenditures for environmental protection activities.

This report examines how Kazakhstan can further improve its national statistical system to better measure and understand financial flows that contribute to the countrys green economy transition. It attempts to answer multiple research questions to identify approaches for the regular measurement of green finance flows within Kazakhstan:

• How does the statistical system work in Kazakhstan?

• What does the available data show us about green finance flows?

• How can the statistical system be improved so it can better measure green finance flows, while minimising the risk of creating an undue reporting burden?

• How can a range of relevant international and national initiatives on sustainable finance help Kazakhstan improve the statistical system?

The Committee on Statistics annually collects and publishes data on environmental expenditures in Kazakhstan, in accordance with the European standard statistical Classification of Environmental Protection Activities (CEPA).

Statistical data show that Kazakh public and private entities spent KZT 87 billion (or USD 230 million) of investment expenditures and KZT 175.4 billion (or USD 462 million) of current (operational) expenditures in 2017. The level of investment and current expenditures for environmental protection as a share of gross domestic product (GDP) remains relatively low, compared to those of the EU countries. Over 2015-2017, investment and current expenditures as shares of GDP are 0.2% on average and 0.4%, respectively.

Based on discussions with the OECD through this study, the Committee on Statistics broadened its data collection on current expenditures. Beyond environmental protection activities, the committee has decided to collect data on current expenditures for energy efficiency, renewable energy and other climate mitigation actions. Until 2019, these three types of expenditures had been collected for investment expenditures for these activities, but not for current expenditures.