Scaling up project preparation and finance for net zero carbon buildings in Kazakhstan and Uzbekistan

The report identifies that buildings account for up to 70-80% of collective emissions from buildings, transport, and waste in secondary cities of Kazakhstan and Uzbekistan. While both nations have introduced energy efficiency targets—Uzbekistan aiming for a 50% improvement in overall economy energy efficiency by 2030 and Kazakhstan targeting a 15% reduction in energy intensity by 2029—implementation is hindered by significant energy subsidies (up to 50% for residential buildings) and a lack of technical capacity. The document maps 12 international entities providing project preparation support and proposes 12 recommendations to address gaps in data, awareness, institutional coordination, and dedicated financial instruments.

• Buildings are a primary source of emissions in Central Asian cities, with data for secondary cities in Kazakhstan and Uzbekistan showing they account for "up to 70-80% of city-wide collective emissions from the buildings, transport, and waste sectors."
• Kazakhstan and Uzbekistan have set national energy goals, though they lack specific building sector targets in their NDCs. Uzbekistan aims to "improve the overall economy’s energy efficiency by 50% by 2030," while Kazakhstan targets a "15% reduction in the economy’s energy intensity by 2029 through prioritizing energy efficiency in buildings."
• High energy subsidies significantly undermine the financial viability of net zero carbon building (NZCB) projects. In some countries, subsidies "cover up to 50% of the energy costs of residential buildings," which increases the payback periods for energy-efficient retrofits.
• There is a critical shortage of data and technical capacity to prepare investable projects. Energy consumption data is often "not systematically collected or analyzed over the long term" and is held by utility enterprises rather than local administrations. Additionally, Uzbekistan faces a "structural shortage of key technical capacities," including a lack of energy auditors, project engineers, and urban planners.
• The report identifies 12 international entities providing project preparation support, ranging from city networks to multilateral development banks. These stakeholders generally focus on either "early stages of the project development, working until the pre-feasibility stage, or full service," but there is "untapped collaboration potential" to better link project concepts to financing.
• Financial instruments specifically for NZCBs are underdeveloped in both countries. While Kazakhstan has a more developed green finance market and introduced a "green mortgage in 2023," both nations lack targeted instruments such as "sovereign and municipal bonds, fiscal instruments, and innovative business models such as energy service companies."

APA

Macedo, F. M. P., Bassetti, T., & Zikrina, Z. (2024). Scaling up project preparation and finance for net zero carbon buildings in Kazakhstan and Uzbekistan. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/06/Central-Asia-Hub-Scaling-up-project-preparation-and-finance-for-NZCB.pdf

Chicago

Macedo, Francisco Martes Porto, Tommaso Bassetti, and Zulfira Zikrina. Scaling up project preparation and finance for net zero carbon buildings in Kazakhstan and Uzbekistan. Climate Policy Initiative, 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/06/Central-Asia-Hub-Scaling-up-project-preparation-and-finance-for-NZCB.pdf.

Wikipedia

{{cite report |last1=Macedo |first1=Francisco Martes Porto |last2=Bassetti |first2=Tommaso |last3=Zikrina |first3=Zulfira |title=Scaling up project preparation and finance for net zero carbon buildings in Kazakhstan and Uzbekistan |publisher=Climate Policy Initiative |date=May 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/06/Central-Asia-Hub-Scaling-up-project-preparation-and-finance-for-NZCB.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{macedo2024scaling, author = {Macedo, Francisco Martes Porto and Bassetti, Tommaso and Zikrina, Zulfira}, title = {{Scaling up project preparation and finance for net zero carbon buildings in Kazakhstan and Uzbekistan}}, institution = {Climate Policy Initiative}, year = {2024}, month = may, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/06/Central-Asia-Hub-Scaling-up-project-preparation-and-finance-for-NZCB.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }