Green financing is growing in Central Asia
Kazakhstan has emerged as Central Asia’s leading market for green and sustainable bonds. However, there is also significant potential in other countries in the region, said Manas Gizhduaniyev, CEO of the AIFC Green Finance Centre (GFC), on the sidelines of the 2026 Regional Ecology Summit in Astana.
“Our main task is to promote green and sustainable financial services in Kazakhstan,” said Gizhduaniyev. The center is a subsidiary of the Astana International Financial Centre but also collaborates with other Central Asian countries.
Over the past five years, the GFC has played a key role in developing the market. “We were instrumental in developing the green taxonomy for Kazakhstan and supported the issuance of the first green bond, social bond, and sustainable bond in Kazakhstan, Kyrgyzstan, Uzbekistan, and Azerbaijan,” he said.
Kazakhstan dominates the regional market
The center primarily functions as a verification body for green bonds. This work follows international standards, such as those of the Climate Bonds Initiative and the International Capital Market Association. According to Gizhduaniyev, the GFC is the only verification body in Central Asia with dual accreditation.
The market started small. The first green bond in Kazakhstan and Central Asia was issued in 2020 by the state-owned Damu Fund. “The amount was very small; it was a pilot project,” said Gizhduaniyev. At the time, many financial institutions still had little experience with such instruments.
Since then, the volume has increased significantly. National companies, subsidiaries of Samruk-Kazyna, and Baiterek Holding have since issued green, social, and sustainable bonds.
According to Gizhduaniyev, outstanding sustainable bonds in Central Asia total around $3.5 billion. Of this, approximately $2.9 billion is attributable to Kazakhstan. This makes the country the dominant player in the regional market.
Kazakhstan and Uzbekistan are among the most important issuers, but differ in their market structures. “In Kazakhstan, thematic bonds are mainly used by companies, banks, and state-owned firms,” said Gizhduaniyev. “In Uzbekistan, on the other hand, the Ministry of Finance has issued several green government bonds and ESG bonds.” There, the market is more heavily supported by the state, while in Kazakhstan it is primarily shaped by the private sector and state-affiliated companies.
Stock exchanges create additional incentives
Local stock exchanges are also supporting this development. In Kazakhstan, sustainable bonds are primarily listed on the Astana International Exchange and the KASE. Both exchanges have waived listing fees for green, social, and sustainable bonds.
This combination of standards, verification, and financial incentives facilitates issuance. “We now have a common language for what counts as environmentally friendly, a global verifier, and incentives from the stock exchanges,” said Gizhduaniyev. As a result, issuing such bonds can be cheaper than issuing traditional bonds.
Interest in the region is expected to continue growing. According to its own statements, the GFC is collaborating with Kyrgyzstan, Uzbekistan, Azerbaijan, and Tajikistan. Gizhduaniyev sees significant potential, particularly among financial institutions. Many banks are planning green bonds and are currently developing corresponding frameworks.
Recently, however, issuance volumes have declined. Following a record year in 2024, the volume of green bonds in Central Asia fell by about 25 percent in 2025. Gizhduaniyev attributes this to changes in subsidy programs. In 2024, Kazakhstan had a subsidy program that provided small and medium-sized enterprises with government support for coupon payments. This made issuances particularly attractive. That program has since been adjusted.
Nevertheless, the market is still in its infancy. “The market is small at the moment, but we are working on its development. It is only five years old,” said Gizhduaniyev.
Funds from green and sustainable bonds are primarily directed toward renewable energy, climate adaptation, energy efficiency, and waste management. Waste management, in particular, is gaining importance. “This is a major problem, not only in Kazakhstan but throughout Central Asia,” he said.
The GFC is currently working on five projects for which green bonds are being prepared. Contracts have already been signed with the participating companies. The next step is to obtain second opinions and audits for the planned issuances.
