EBRD: Kazakhstan has decade to prepare for fall in global oil sales

EBRD: Kazakhstan has decade to prepare for fall in global oil sales

Baku, Azerbaijan, Nov. 26

By Rashid Shirinov – Trend:

The changing dynamics in global energy markets are likely to put pressure on fossil fuel exporters such as Kazakhstan, reads a report by EBRD titled "The fiscal implications for Kazakhstan of worldwide transition to a greener global economy".

The report notes that these dynamics include the development of alternative energy sources, the falling costs of cleaner energy technologies, and countries’ commitments to achieving global climate goals.

"This will mean that export revenues may fall – due both to lower exports and lower oil prices – by up to 40 percent in the next 20 years, leading to unsustainable levels of public debt in Kazakhstan," EBRD said.

The Bank added that as oil is a major source of government revenue, this may in turn put pressure on the state budget. Therefore, good risk management on the fiscal side will be an important priority for fossil fuel-exporting countries.

The report looks at three possible scenarios: business as usual, a partial green transition and a full transition to a low-carbon economy across the globe.

"The first two scenarios would mean that the world falls far short of the goal to contain global warming to 2°C; however, this may also mean that oil demand remains buoyant in global markets, in which case Kazakhstan’s fiscal position would not be under threat," reads the report.

However, if there is a worldwide shift to a greener economy, and oil prices settle at about $65, then over the course of the next decade this could lead to depletion of the country’s national savings from oil.

"The most significant fiscal impacts are projected to occur in the late 2020s, suggesting that there is a window of opportunity of around a decade in which Kazakhstan could take action to address these impacts," EBRD noted.

EBRD is a leading investor in sustainable energy and green economic transition in its regions, with over 26 billion euro committed to projects in this area since 2006. The green economy is one of the Bank’s priorities in Kazakhstan.

---

Follow the author on Twitter: @ShirinovRashid

Subscribe to Trend in Google News! Subscribe
Turkmenistan boosts imports of electrical goods from Turkey
Turkmenistan boosts imports of electrical goods from Turkey
Novavax developing vaccine that targets new COVID-19 variant
Novavax developing vaccine that targets new COVID-19 variant
Eni sells some stakes to Snam
Eni sells some stakes to Snam
Loading Bars
Latest
Gymnast from Kazakhstan win gold in acrobatic jumping at 28th FIG Trampoline Gymnastics World Age Group Competitions
Best moments of third day of the World Age Group Competitions in Trampoline Gymnastics and Tumbling in Baku (PHOTOS)
World age group competition in Baku - Russian gymnast wins first place in individual trampoline jumping
Russian gymnast wins gold in individual trampoline jumping in Baku
Turkmenistan boosts imports of electrical goods from Turkey
Turkmenistan agrees to participate in Lapis-Lazuli project
Smoking to be banned in taxis in Georgia
Iran’s Bahar Azadi gold coin price rebounds
11,358 people received COVID-19 vaccine in Kyrgyzstan over past day
Prepared hard for the 28th World Competition in Baku - athlete from Denmark
Finalists in synchronized trampoline jumping among men and women announced at 28th FIG World Age Group Competitions in Baku
Finalists in individual trampoline jumping among men announced at 28th FIG World Age Group Competitions in Baku
Azerbaijan expects mutual steps from Armenia towards achieving peace - FM
Azerbaijani, Turkish FMs meet at Economic Cooperation Council's meeting in Ashgabat
Phone conversation held between Presidents of Azerbaijan and Belarus
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,617 more COVID-19 cases, 1,979 recoveries
ECO Council of FMs supports Azerbaijan's proposal to establish Clean Energy Center (PHOTO)
Buy/sell operations at Iran Mercantile Exchange revealed
Finalists in double mini-trampoline jumping among men announced at 28th FIG World Age Group Competitions in Baku
Finalists in acrobatic jumping among men named at 28th FIG World Age Group Competitions in Baku
Azerbaijani gymnast Seljan Mahsudova reaches finals of World Age Group competition
Kazakhstani Astana- Motors to produce Hyundai cars in Uzbekistan
Iran reveals COVID-19 data for November 27
Finalists in acrobatic jumping among women announced at 28th FIG World Age Group Competitions in Baku
Novavax developing vaccine that targets new COVID-19 variant
Eni sells some stakes to Snam
28th FIG Trampoline Gymnastics World Age Group Competitions underway in Baku (PHOTOS)
Azerbaijan reveals financing of pensions, benefits for 9M2021
Turkish company to organize cotton-textile cluster in Uzbekistan
Finalists in double mini-trampoline among women announced at 28th FIG World Age Group Competitions in Baku
Georgia’s imports from Turkmenistan triple
Coach set goal to enter top three in individual trampoline jumping - Russian gymnast
Uzbek National Bank to issue its bonds on Russian Exchange
33,946 new Covid cases registered in Russia in 24 hours
Georgia to replace damaged buildings – Mayor of Tbilisi
Meeting in Sochi - new step towards sustainable peace in South Caucasus - Turkey's presidential administration
Turkey's cargo traffic via its Gulluk port for 9M2021 revealed
GUAM shares reviews of results of Georgia's presidency
Uzbekistan to sell shares of its two banks to Russian banks
EBRD to support green innovation in Uzbekistan
Turkmenistan's On Dogan to scale up production of vegetables, melons
Turkey shares data on cargo shipment via its ports from Greece for 9M2021
Azerbaijan limits import of poultry products from number of countries
Number of flights from Iran’s Shahid Beheshti International Airport soars
Turkey discloses volume of cargo shipment via its ports from Italy for 9M2021
Iran resumes activity of several enterprises in Sistan and Baluchestan Province
Azerbaijan’s Nakhchivan notes increase in agricultural production for 10M2021
Relations between Baku, Moscow experience highest dev’t stage in history of Azerbaijan's independence – experts
Sri Lanka bans travellers from 6 African nations due to Omicron COVID variant
We feel very comfortable in National Gymnastics Arena in Baku - Israeli athletes
Weekly review of key events in Azerbaijan's ICT sector
Weekly review of main events in Azerbaijan's transport sector
Uzbekistan reveals leading banks without state share in terms of volume of deposits
Number of people hospitalized after Listvyazhnaya mine explosion grows to 58
Weekly review of Azerbaijani precious metals market
Georgia reveals top exported goods to China
Performing at National Gymnastics Arena in Baku is unbelievably cool - Kazakh athlete
Iran’s NICICO records increase in sales
Weekly review of Azerbaijani currency market
Azerbaijan notes growth in total liabilities of banks in 10M2021
Several hydrological points to be installed on rivers in Azerbaijan’s liberated territories – ministry
Iran’s Saipa Company increases auto manufacturing
Georgia releases COVID-19 data for November 27
Uzbekistan names leading state-owned banks in terms of volume of deposits
Georgia, EU to enhance co-op in foreign policy, security
Iran to reconsider guaranteed price for wheat purchase
Iran sees increases in exports
Iran, Afghanistan to improve trade
Third day of 28th FIG Trampoline Gymnastics World Age Group Competition kicks off in Baku (PHOTO)
Turkey shares data on cargo shipment via its ports from Spain for 9M2021
Methane outburst is viewed as likely cause behind deadly blast at Listvyazhnaya coalmine
Turkey shares data on vehicles shipments between its Cesme, Greek Chios ports
Weekly review of Azerbaijan's oil & gas sector
Iran's PBO talks reduced inflation rate
Iranian startups to make their first initial public offering - Farabourse
Iran's solar power plants generate half of renewable energies - SATBA
Iran eyes developing national space industry
Azerbaijan once again achieves its goals at meeting in Russia’s Sochi - experts
Uzbekistan shares updated COVID-19 data
New World Order and India
Iranian currency rates for November 27
Azerbaijani oil prices decrease
Azerbaijan sees decrease in number of users per payment terminal in 10M2021
Iran, France to improve economic ties
Turkey reveals volume of vehicles shipments between its Yalova, Italian Bari ports
Georgia-China trade turnover up
Kazakhstan’s Ekibastuz GRES-2 power station opens tender to buy spares for engine
Pfizer/BioNTech, Moderna expect data on shot's protection against new COVID-19 variant soon
“Armenian clan” guides European institutions (PHOTO)
Iran, Turkmenistan, Kazakhstan sign tripartite MoU on railway cooperation
Turkey bans travel from 5 African countries over new COVID-19 variant
Uzbekistan, Kazakhstan sign an agreement worth about $612 million
Kazakhstan has great potential to use high environmental standards in practice - AIFC
South Africa says travel bans over new variant unjustified
US announces travel restrictions over new COVID-19 variant
At least 19 dead, 32 injured after bus crash in Mexico
US company Moderna begins work on vaccine against new SARS-CoV-2 variant ‘Omicron’
Dozens of COVID-19 cases on flight from South Africa, Dutch authorities say
Top Iran diplomat calls for lifting of sanctions, days before Vienna nuclear talks
All news