The EDB: To successfully achieve the SDGs by 2030, Central Asia needs sustainable, climate and social investments
Almaty, 18 March 2023. The Eurasian Development Bank (EDB) participated in the eighth session of the Regional Forum on Sustainable Development hosted by the United Nations Economic Commission for Europe. The event took place from 13 to 14 March 2024 at the Palais des Nations in Geneva, Switzerland.
In his presentation, Conrad Albrecht, Managing Director and Head of the EDB Directorate of Sustainability, highlighted that the Bank, as a financier for regional projects, has a unique mandate with a primary focus on fostering cross-country infrastructure development and business integration among six countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.
“Our main focus is on critical infrastructure sectors such as transportation, chemicals, metallurgy, mining, mechanical engineering, utilities and energy. All these activities have environmental and climate impacts and therefore require robust and effective environmental and social safeguards, monitoring and control measures,” he affirmed.
Conrad Albrecht further noted that despite the Bank’s efforts, a critical challenge is the inadequate net influx of sustainable, climate and impact investments crucial for achieving the SDGs by 2030 and fostering carbon neutrality across Central Asian countries.
Renewable energy constitutes 68% of the EDB’s green investment portfolio. The Bank recognises that Central Asian countries continue to rely on carbon-intensive coal-fired generation. According to IEA data for 2021, coal accounts for approximately 48% of Kazakhstan’s total energy supply, 26% in Kyrgyzstan and Tajikistan, and 15% in Russia.
“All our member countries have outlined their Nationally Determined Contributions (NDCs) under the Paris Agreement, and Russia and Kazakhstan have formulated low-carbon development strategies. Nonetheless, the latest joint MDB climate finance report reveals that only 4% of MDB climate investments in low- and middle-income countries have been allocated to Central Asia, totalling US$2.6 billion. In terms of the SDGs, the estimated investment need to bridge the deficit by 2030 amounts to US $38 billion per year, totalling US $228–266 billion,” he clarified.
Conrad Albrecht believes that these figures clearly show that both government agencies and global institutional investors, who control a significant portion of the world’s wealth, should prioritise targeted financing for Central Asia’s needs. He stressed the importance of allocating transition funding to upgrade existing coal-fired generation facilities to cleaner alternatives. The EDB stands ready to support and co-finance such projects in Central Asia.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries. For more than 18 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.
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