Best Sustainable Finance Lawyers in Kazakhstan

About Sustainable Finance Law in Kazakhstan, Kazakhstan

Sustainable finance refers to financial activities that take into account environmental, social, and governance (ESG) considerations as part of investment decisions and funding practices. In Kazakhstan, sustainable finance is gaining momentum as the country seeks to diversify its economy, attract international investment, support green projects, and align with global environmental goals. New laws and policies are shaping the path for businesses and investors to contribute to sustainable development, reduce their carbon footprint, and adapt to future-oriented financial models. Understanding the legal requirements and opportunities in this evolving field is crucial for companies, investors, and other stakeholders in Kazakhstan.

Why You May Need a Lawyer

Navigating sustainable finance in Kazakhstan involves a complex landscape of legal requirements that can vary depending on the type of project, sector, or funding. Here are some common situations where you may need legal assistance:

• Structuring green bonds, social bonds, or other ESG-related financial products
• Ensuring compliance with Kazakhstan's environmental and financial regulations
• Seeking certification or accreditation for sustainable or green investments
• Negotiating terms of sustainable investment or financing agreements
• Participating in international sustainable finance programs or initiatives
• Understanding tax incentives or benefits associated with sustainable projects
• Handling disputes or litigation arising from ESG reporting or sustainable practices

Legal counsel can clarify your rights and responsibilities, help mitigate risks, and provide tailored advice relevant to your specific goals in sustainable finance.

Local Laws Overview

Kazakhstan has incorporated various aspects of sustainable finance into its legal and regulatory framework. Some key highlights include:

• The Astana International Financial Centre (AIFC) has established a Green Finance Centre to encourage green investments and develop sustainable finance instruments like green bonds.
• The Environmental Code of Kazakhstan includes provisions aimed at promoting green technologies and supporting environmentally sustainable projects.
• Several governmental strategies and programs, such as the Concept for Kazakhstan’s Transition to a Green Economy, set out goals for sustainable development, responsible resource management, and low-carbon growth.
• Kazakhstan has begun adopting international standards for reporting ESG criteria and supporting financial disclosures related to sustainability.
• Tax incentives or preferential financing may be available for projects that meet green criteria or contribute to the country’s environmental goals.

Staying informed about updates to local laws and regulations is essential, as Kazakhstan’s sustainable finance framework is continuing to evolve in line with global trends.

Frequently Asked Questions

What is considered a sustainable or green finance activity in Kazakhstan?

Sustainable finance activities generally include investments and financial practices aimed at environmental protection, social responsibility, and effective governance. In Kazakhstan, this could range from issuing green bonds to investing in renewable energy, eco-friendly infrastructure, or projects supporting social development.

Who regulates sustainable finance activities in Kazakhstan?

The primary regulator is the Astana Financial Services Authority (AFSA) within the AIFC, while the Ministry of Ecology, Geology and Natural Resources and the National Bank of Kazakhstan also play important roles on environmental and financial policy.

Do I need certification to issue green financial products?

Issuing green bonds and some other sustainable finance instruments often requires compliance with specific criteria and may involve certification or external verification to ensure alignment with green standards, either locally or following international guidelines.

Are there tax incentives for sustainable projects in Kazakhstan?

Yes, certain sustainable and green projects may qualify for tax incentives or preferential treatment as part of government programs supporting environmental and sustainable development goals.

How does Kazakhstan’s legal system support ESG reporting?

Kazakhstan is encouraging companies to include ESG disclosures in their reporting, especially those listed on the AIFC or engaged in projects with environmental or social impacts. The adoption of international ESG reporting standards is growing.

Can foreign investors participate in Kazakhstan’s sustainable finance sector?

Yes, Kazakhstan has liberalized many aspects of its financial sector, and foreign investors are welcome. The AIFC offers a special legal regime, tax preferences, and streamlined procedures for foreign participants in sustainable finance.

What types of disputes can arise in sustainable finance?

Disputes can involve contract terms, compliance with green standards, misrepresentation of ESG metrics, or issues with regulatory approvals. Legal support is important to navigate settlements or litigation in these matters.

Are there local standards for what qualifies as a green project?

Kazakhstan uses both local and international standards to define green projects, especially for the purpose of issuing green finance instruments or accessing incentives. The AIFC Green Finance Centre publishes relevant guidance.

How can businesses align with Kazakhstan’s green finance framework?

Businesses should seek legal advice to ensure compliance with regulations, follow applicable reporting standards, and structure their finance arrangements according to approved green criteria. Engaging with the AIFC can also provide guidance and support.

Where can I find updates about sustainable finance laws and regulations?

Major updates are published by government authorities, the AIFC, and local legal advisories. Monitoring their announcements and consulting with legal professionals will help you stay informed.

Additional Resources

If you need more information or guidance on sustainable finance in Kazakhstan, the following organizations and resources can be helpful:

• Astana International Financial Centre (AIFC) and its Green Finance Centre
• Astana Financial Services Authority (AFSA)
• Ministry of Ecology, Geology and Natural Resources of Kazakhstan
• National Bank of Kazakhstan
• Kazakhstan Stock Exchange (KASE)
• Local legal associations and law firms specializing in finance and environmental law
• Non-governmental organizations focused on sustainable development

These entities can provide information on regulations, available incentives, green finance opportunities, and reliable contacts for legal assistance.

Next Steps

If you need legal help with sustainable finance in Kazakhstan, consider the following steps:

1. Assess your goals and specific needs in relation to sustainable finance
2. Gather relevant documentation and project details
3. Consult a licensed lawyer with expertise in finance, ESG, and local regulations
4. Engage with relevant organizations like the AIFC for up-to-date opportunities and compliance requirements
5. Stay informed about changing laws and best practices by following government announcements and sector news
6. Take proactive steps to ensure your projects meet sustainable finance standards and benefit from available legal protections

Seeking professional legal advice early in the process can help clarify your options, ensure compliance, and maximize the benefits of Kazakhstan’s evolving sustainable finance landscape.