BAKU, Azerbaijan, June 9. Climate change is a grave threat to macroeconomic and financial stability, so for a country so heavily reliant on fossil fuels, Kazakhstan’s climate-related commitments as commendable, Managing Director of International Monetary Fund Kristalina Georgieva told Trend.
"Like many other countries, Kazakhstan will need a comprehensive set of reforms to adapt to the impact of climate change, to mitigate carbon emissions, and to prepare for an economic transition away from its dependence on fossil fuels, given global decarbonization," she said.
According to Georgieva, these transformations toward a greener, more diversified economy will require a combination of higher fossil fuel prices, and increased public and private investment.
She added that the IMF can support Kazakhstan’s efforts in this area along several dimensions.
"On the fiscal front, our analytical tools provide comprehensive assessments of various policy options, and our experts provide advice to improve the quality of public investment, including to build low-carbon and climate-resilient infrastructure," the managing director said.
Furthermore, she added that the IMF technical assistance can help strengthen Kazakhstan’s social safety net alleviate the impact of the transition on the most vulnerable.
"Finally, in financial sector, we can help Kazakhstan to develop a climate risk assessment framework, as is the case as part of the current Financial Sector Assessment Program. We are more than happy to work with the government on all of these issues," Kristalina Georgieva said.