ADB’s experience with financing renewable energy projects Giovanni Capannelli Country Director Kazakhstan Resident Mission Asian Development Bank 2nd Summit on Renewable Energy Astana, Kazakhstan 8 June 2018

ASIA’S TOTAL ANNUAL INFRASTRUCTURE NEEDS Until 2030 $1.7 trillion $200 billion Infrastructure investments required every year including climate change mitigation and adaptation Climate mitigation costs (renewable energy, smart grids, energy efficiency)

ADB’s COMMITMENT TO GREEN FINANCE Mobilized external funds $0.7 B Total cumulated green finance by 2017 74 loan projects 45 technical assistance grants $5.2 B ADB own resources Poverty is the region’s greatest development challenge and ADB’s highest strategic priority. Our vision is clear and far-reaching: an Asia and Pacific region free of poverty. To help achieve that goal, ADB is dedicated to improving the living conditions and quality of life for people in our developing member nations. $4.5 B 2020 target: $6.0 B

Kazakhstan’s GREEN GROWTH PERFORMANCES Among top 10 carbon intensive economy in the world using 3 times more energy per unit of GDP than OECD average # 1 for GHG emissions per unit of GDP # 13 GHG emissions per capita .

Up to 50%-70% is due to fuel and energy cost in some cases Kazakhstan’s GREEN GROWTH PERFORMANCES Up to 50%-70% is due to fuel and energy cost in some cases 70% of installed electricity capacity is obsolete In the electricity sector significant investment is needed to rehabilitate outdated assets and expand capacity

Kazakhstan’s GREEN GROWTH PERFORMANCES 25% Reduced emissions by 2030 (from 1990 levels) TARGETS Energy generation from renewable sources 30% 0.8% 3% 2017 2020 2030

Economic Diversification ADB’s support to Kazakhstan’s GREEN GROWTH Country partnership strategy 2017-2021 Three Pillars ADB’s overarching strategic document – Strategy 2020 – was adopted in 2008. It defines how we can help shape the region’s future, reduce poverty, and improve the quality of life and the living conditions for people in the Asia Pacific region.   At the heart of Strategy 2020 are 3 strategic agendas: 1. Inclusive growth focuses on increasing the poor’s access to markets and basic productive assets, and investing in high and sustainable economic progress so that all members of a society can participate in and benefit from growth. 2. Environmentally sustainable growth supports the use of environmentally friendly technologies, the adoption of environmental safeguards and the establishment of institutional capacities to strengthen their enforcement. 3. Regional integration supports accelerated growth, higher productivity and employment. It reduces economic disparities, and allows for closer policy coordination and collaboration on regional and global public goods, such as combating climate change and HIV/AIDS. Inclusive Development Environmentally Sustainable Growth Economic Diversification

Kazakhstan’s GREEN GROWTH ADB’s support on Kazakhstan’s GREEN GROWTH Focused on developing financial products promoting energy efficiency, renewable energy, and climate resilience. In April 2018 ADB and EBRD signed the first renewable energy sector project in Kazakhstan (Baikonur Solar Plant) ADB, World Bank and the Government of Kazakhstan to launch a nationwide urban infrastructure modernization program and finance facility Green finance catalyzing facility to address the lack of bankable projects

Amid a rapidly growing and changing Asia and Pacific region, ADB remains a relevant, responsive and results-focused development partner. With the key resources of finance and expertise, strong partnerships, and dedication to our mission, we are doing our part to achieve the widely shared vision of an Asia and Pacific free of poverty.   For further information please go to www.adb.org Thank you for your attention. www.adb.org