Page 19 - bne IntelliNews weekly newspaper – Russians lose showdown at EBRD AM

Eurasia
May 12, 2017 www.intellinews.com I Page 19
economy, including in relation to its Conference of the Parties (COP21) commitments, green legis- lation and investments in energy efficiency and renewables... Energy and resource efficiency and climate change mitigation will continue to be a major focus of its work.”
Kazakhstan has set goals to cut greenhouse gas emissions under the Paris COP21 climate agree- ment, and to raise the share of renewable energy in the country’s total production, to 3% and 10% by 2020 and 2030 respectively.
The EBRD has supported sustainable energy in Kazakhstan consistently over the past few
EBRD predicts stronger growth in Caucasus/ Central Asia in 2017
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Average growth in Central Asia is expected
to rise to 3.8% in 2017 and 4.6% in 2018 following a weaker 2016, the European Bank of Reconstruction and Development (EBRD) said in its latest Regional Prospects Report released on May 10. Growth in the Caucasus and Eastern Europe region will pick up from 0% in 2016 to 1.1% in 2017 and 2.4% in 2018, it said.
The development bank mainly cited expectations of an improved external environment in making its forecast, with higher oil prices and remittances from Russia flowing to the region set to be major factors leading the regional economic recovery.
Remittances from Russia to Central Asia stabilised in dollar terms by end-2016, as opposed to the 32% contraction seen a year earlier, although when 2016 is compared to
2014 the level of remittances was still 45% down.
years. Among the latest examples, the EBRD has approved a €200mn financing scheme for renewable energy projects in the country in December 2016.
In January, the bank, as part of its Green Energy Transition approach, shared its goals to assess the potential to develop a “green financial sys- tem”. A green financial system is meant to boost funding for green projects in the country and beyond. It is planned to incorporate the system in the Astana International Financial Centre (AIFC), which will be launched as part of the EXPO 2017 showcase. The AIFC aims to become a regional financial hub.
The remittances have likely started growing
again during the first half of 2017, since the Russian economy has been getting back on track somewhat and the ruble has appreciated while oil prices have been rising, the EBRD noted.
The slowdown in Kazakhstan bottomed out in 2016 to 1%, and GDP growth is projected to increase
to 2.4% in 2017, thanks to targeted public invest- ments, stronger oil exports due to an improved price outlook and higher FDI inflows, the EBRD said. GDP in 2018 is expected to grow to 3.5%, driven by accelerated production at the Kashagan oil field, which will further boost oil exports, and higher FDI from China as the eastern neighbour is ratcheting up its investment activity in the country.
Mongolia’s growth is expected to improve to 1.4% in 2017 and 2.8% in 2018, supported by increased investment in the underground expansion of the