Kazakhstan’s Damu Entrepreneurship Development Fund JSC (Damu Fund) was recognized by the 6th Annual Climate Bonds Awards 2021 as one of the global leaders in promoting green finance. Every year, leading organizations, financial institutions and governments who have led the development of green finance markets are recognized through the Climate Bonds Awards.
Damu Fund received the Green Market Pioneer award for issuance of first ever green bonds at the Astana International Exchange (AIX) with support of the United Nations Development Programme (UNDP) in Kazakhstan in August 2020.
“We hope that further cooperation with UNDP and the Astana International Exchange will give a new impetus to efforts aimed at stimulating investment in renewable energy projects,” said Gaukhar Buribayeva, Chairperson, Damu Entrepreneurship Development Fund JSC.
“We congratulate Damu Fund for the Green Market Pioneer in Kazakhstan award. This is a public acknowledgement to all organizations and governments that are at the forefront of shifting capital towards low carbon solutions and the larger transition to net-zero, providing real economy examples of where investment should be going. Particularly welcome are first time and pioneering issuers from emerging and developing economies, taking a leading role and adding depth and diversity to global and regional markets,” said Sean Kidney, CEO, Climate Bonds Initiative.
“In late 2020 we achieved the global milestone of a cumulative $1trillion green investment. But the climate crisis and its growing impacts continue to outstrip our efforts on emissions reduction. Acceleration to $1trillion in annual green investment is the next goal for global finance and governments. A decisive tilting of 2020s capital into green recovery, resilience, adaptation & transition is now required”, he added.
The initiative was implemented within the framework of a joint project between UNDP and the Ministry of Energy of Kazakhstan “De-risking renewable energy investment in Kazakhstan”, funded by the Global Environment Facility (GEF). Under the agreement with Damu Fund, in addition to subsidizing a portion of the coupon rate for the bonds, UNDP provided technical support in selection of green projects. The proceeds were used to finance construction of a micro solar powerplant in Turkestan region of Kazakhstan.
“In addition to addressing environmental issues, investments into green economy present a unique opportunity to accelerate socio-economic development, stimulate economic diversification, generate new jobs and support SMEs. We greatly value our partnerships with national stakeholders, which help leverage new investments for Kazakhstan's transition to low-carbon growth and fulfil its international commitments under the Paris Agreement,’’ said Yakup Beris, UNDP Resident Representative in Kazakhstan.
Green bonds can create strong positive alignment of market forces and policy goals, driving investments away from maladaptive practices and toward activities that have a direct positive impact. Moreover, aside from advancing sustainability, climate change mitigation, and energy transition, the successful introduction of green bonds in Kazakhstan and around the world can also help generate greater financial flows for climate change and accelerate introduction of other financial instruments of a similar kind, including social impact bonds, natural disaster bonds, among others.
Climate Bonds Awards are the premier international recognition of leadership, best practice and innovation in green and sustainable finance, encompassing green bonds, loans, sukuk and significant market developments in climate-based investment.