EU efforts to promote "green" economy in Kazakhstan

by Martin Banks

Ambassador Aurelia Bouchez, head of the EU delegation to Kazakhstan, also said that the launch of the new EU research and innovation programme - Horizon 2020 - will “open new opportunities” for cooperation between the two sides.

Bouchez was a keynote speaker at an economic forum in the Kazakhstan capital Astana, which hosted several senior participants and officials from many countries.

The forum saw the signing between Kazakhstan, Russia and Belarus, of the Eurasian Economic Union (EEU), an economic integration project initiated by Russian President Vladimir Putin. The EEU, due to come into force in January, seeks to bolster mutual trade through the removal of customs barriers. Potential candidate countries include Armenia and Kyrgyzstan.

Signing the EEU comes as the EU recently pledged another €63m for the development of Kazakhstan´s regions.EU funding already makes up nearly half of the country`s total foreign direct investment and, in 2012, Kazakhstan-EU trade totalled some €31bn.

In an interview with EBR, Bouchez spelled out how the EU currently supports Kazakhstan government efforts to modernise its civil service through a four year bilateral assistance project, with a budget of €4.3m.

Bouchez, the EU delegation since 2011, said, “The EU supports as one of its priorities Kazakhstan's efforts to reform the civil service, in order efficiently to respond to the needs of its citizens and to contribute to the further modernisation of the state.

“In Kazakhstan as elsewhere, the government seeks to follow best practices in other developed countries. In 2013, the Kazakhstan civil service adopted three basic principles, namely accountability to society, transparency and meritocracy.”

This action helps implement the new ‘civil service model’ and develop legal frameworks.

“Civil servants have to be accountable for their work,” said Bouchez. “Citizens need to have confidence that they are served by the best people, selected on their merits, and committed to providing the best possible service in the most efficient way.”

Drive towards a Green economy

The EU this week hosts its annual Green Week event in Brussels, and Bouchez said the role of SMEs is the “key” for Kazakhstan's transition towards a fully green economy in 2050.

The diplomat, who worked for 20 years in the French foreign affairs ministry, said, “More than 99% of all European businesses are SMEs, by which I mean companies with less than 250 employees. SMEs provide two out of three private sector jobs and contribute to more than half of the total value-added created by businesses in the EU. They are the back-bone of the European economy."

In Kazakhstan, 2.4m people work in SMEs and she said SME development is a “major tool” for industrial and social modernisation. Kazakhstan is developing a comprehensive agenda to transit towards a fully green economy by 2050, she pointed out.

“This,” she added, “requires strong political leadership and the coordination of all efforts, including those of Kazakhstan's partners. The EU has provided substantial funding over the last 20 years, supporting regulatory reforms and private sector development."

In parallel to grant assistance, the ambassador said the EU supports the role of the international financial institutions. In 2013, the European Investment Bank launched its activity in Kazakhstan with the approval of three loans of total €370m for SMEs and mid-caps, which will be channelled through local banks. 

These loans primarily target “green” small and medium-size projects, such as renewable energy, energy efficiency, agriculture, climate change adaptation, water and waste management.”

The EU, she pointed out, is also working to develop a new programme to support the transition to a "green" economy. 

Bouchez, formerly seconded to the European External Action Service, believes that research and innovation is another priority for future EU-Kazakhstan cooperation.

She points to several “innovative” projects being implemented under the Seventh Framework Programme for research and technological development (FP7), including. the development of new solutions for use of coal mine methane in a manner compliant with the reduction of GHG emissions. 

She went on, “Horizon 2020 will open new opportunities for our cooperation. Horizon 2020 is open to everyone, with a simple structure that reduces red tape and time so participants can focus on what is really important. This approach makes sure new projects get off the ground quickly – and achieve results faster."

Bouchez added, “We have a lot of room for cooperation because the EU and Kazakhstan have different characteristics and complementary needs. Together, we can contribute to economic diversification and the goals of Strategy 2050.”

The EU supported cooperation with technical assistance worth almost €180m for more than 80 projects in the areas of infrastructure development, safety and security in transport.

“The recent breakthrough in EU-Kazakhstan aviation cooperation is worth noting, it should allow expansion of flight connections. The TRACECA civil aviation safety and security project has also contributed to this development.”

Discussions at the 7th Astana economic forum covered everything from financial stability to development of trade.

Some 10,000 delegates from 150 countries took part, including 131 ministers, chairmen of central banks and their deputies and ambassadors.

It is one of the largest international forums in the world. Since 2008, the forum brings together global leaders, experts and representatives of business communities to find solutions to combat the major economic and social challenges of our time, both in Kazakhstan and worldwide.