KazNU scientists are implementing a project in the field of the green economy

The Department of Finance and Accounting of the Higher School of Economics and Business of Al-Farabi Kazakh National University is implementing the project “Transformation of ESG financial instruments in the context of the development of the green economy of the Republic of Kazakhstan” within the framework of grant funding from the Ministry of Education and Science of the Republic of Kazakhstan.

The project is dedicated to the study of “green” financial instruments for the purpose of the new ESG (environmental, social and governance) paradigm for the development of the financial system. It is being implemented by a team of scientists under the leadership of the head of the Department of Finance and Accounting, Candidate of Economic Sciences, Associate Professor Azhar Nurmagambetova. The group included a candidate in economic sciences, Acting Associate Professor of the Department of Finance and Accounting Aliya Nurgalieva and doctoral student Karlygash Kurbanova.

The study achieved significant results. As project leader Associate Professor Azhar Nurmagambetova noted, during the work, a refined interpretation of the concepts of “green economy”, “green finance”, “ESG tools” and “ESG risks” was developed. “The relationship between green banking practices and bank profitability was also established and an improved multiple linear regression model was built to establish the benefits of green banking.” Domestic and foreign experience was summarized as aimed at digitalizing ESG financial instruments, allowing to minimize the number of intermediaries in implementing the tasks of Kazakhstan’s transition to a green economy,” said Azhar Nurmagambetova. Scientific articles of project participants were published in a number of reputable journals, including international journals, recommended by the Committee for Quality Assurance in the Field of Science and Higher Education of the Ministry of Science and Higher Education of the Republic of Kazakhstan.

As part of the collaboration, project members worked together with the Green Finance Center of the Astana International Financial Center (AIFC). The research group prepared a report on the topic “Sustainable Finance Market in Central Asia," considering the instruments and mechanisms of financing for achieving the Sustainable Development Goals (SDGs: 7, 8, 13, 17).

The results of the study can be used by financial organizations, second-tier banks when assessing the effectiveness of green instruments, and the AIFC Green Finance Center.

It is planned to release two joint thematic reports on sustainable finance markets in Central Asia.