Kazakhstan as the largest economy in Central Asia and one of the leading global producers of natural resources faces the urgent need to transition to low-carbon technologies. As global greenhouse gas emissions regulations become stricter, Kazakhstan’s high-emitting sectors—including aviation, transportation, metallurgy, and cement production—must find pathways to decarbonization.
The World Economic Forum report “High-Emitting Sectors: Challenges and Opportunities for Low-Carbon Suppliers” (September 2024) outlines key strategies for transitioning to low-carbon technologies and highlights opportunities for developing economies. This article explores how Kazakhstan can leverage these recommendations to reduce emissions and maintain competitiveness on the global stage.
Aviation: Transitioning to Sustainable Aviation Technologies and Implementing SAF
Aviation remains one of the most challenging sectors for decarbonization, as current aviation engines produce significant carbon emissions. The WEF report emphasizes that the adoption of Sustainable Aviation Fuel (SAF) and new technologies, such as hydrogen and electric engines for short flights, are key directions for reducing emissions.
What is SAF?
SAF (Sustainable Aviation Fuel) is designed to reduce carbon emissions. It is produced from renewable sources such as vegetable oils, used oils, agricultural waste, and even carbon dioxide. Unlike conventional jet fuel, SAF can reduce carbon emissions by up to 80% over its entire life cycle. Moreover, SAF is compatible with existing aviation engines, making it easy to apply in modern airports.
For Kazakhstan, which aims to become an aviation hub in Central Asia, SAF presents a significant opportunity to reduce its carbon footprint. By investing in the production and storage infrastructure for SAF, Kazakhstan can ensure the environmental sustainability of its aviation sector. However, implementing SAF will require substantial investments in infrastructure, necessitating financial support and collaboration with international development banks and private investors.
Freight Transportation and Logistics: Implementing Low-Carbon Transport
Kazakhstan’s transportation sector plays a strategically important role due to its location along key routes between Europe and Asia. It is also a significant source of emissions. The WEF report examines electric and hydrogen freight vehicles as promising technologies for reducing the carbon footprint in the logistics and transportation sector.
Kazakhstan could develop infrastructure for charging electric vehicles and refueling hydrogen vehicles, creating conditions for a transition to eco-friendly freight transportation. Additionally, the country could increase the share of rail transport, which has a significantly lower carbon footprint compared to road transport. Government support measures, such as tax incentives and subsidies for the adoption of hybrid or electric vehicles, could lead to significant changes in the freight transport sector.
Kazakhstan could also participate in international transport initiatives to promote “green corridors,” where low-carbon transport is used. This would allow the country to attract financing from international organizations and foreign investors interested in environmentally sustainable transport solutions.
Metallurgy and Cement Production: Upgrading High-Emitting Industries
The metallurgy and cement production sectors are among the largest sources of carbon emissions in Kazakhstan, significantly impacting national output. The WEF report emphasizes the importance of upgrading production processes and utilizing carbon capture and storage (CCS) technologies for achieving decarbonization in these sectors.
Kazakhstan can consider employing renewable energy sources in the metallurgical sector and implementing CCS technologies. Carbon capture technologies allow for CO₂ emissions to be captured directly at production sites and stored underground, which reduces emissions and protects the environment. In addition to upgrading plants, Kazakhstan could establish partnerships with international technology companies to adopt best practices for decarbonizing steel and cement production.
As cement production is energy-intensive, Kazakhstan could invest in developing innovative materials that help reduce emissions during cement manufacturing. The country could also establish specialized research centers focused on developing eco-friendly technologies for cement production, attracting international partners and establishing Kazakhstan as a leader in this field.
Carbon Capture and Storage Technologies: Long-Term Solutions for Industry
Carbon capture and storage (CCS) is identified in the WEF report as a key technology for high-emission countries. For Kazakhstan, implementing CCS at major production facilities and power plants could be a primary tool for reducing emissions.
The country has extensive underground geological structures suitable for long-term CO₂ storage. Kazakhstan can leverage this opportunity to develop infrastructure that allows for capturing CO₂at large production sites and simultaneously supporting export-oriented enterprises that adhere to low-carbon standards. Kazakhstan could also create special economic zones for companies engaged in CCS and other low-carbon technologies, offering tax incentives and subsidies to encourage investment.
As countries around the world transition to low-carbon technologies, Kazakhstan has significant opportunities to modernize its high-emission sectors. The World Economic Forum report underscores the necessity of structural changes in energy, transport, and industry for sustainable development. By implementing sustainable aviation fuel SAF, developing infrastructure for electric and hydrogen transport, upgrading metallurgy and cement production, and utilizing CCS technologies, Kazakhstan can substantially reduce emissions and become a leader in low-carbon development in Central Asia. These steps will not only enhance the country’s environmental sustainability but also strengthen its economy, ensuring a stable future in the face of global climate changes.
Kuanysh Beisengazin, Editor-in-Chief of the Economy KZ portal,
Head of the Central Asia Project Office for Climate Change and Green Energy
