Decarbonisation Opportunities and Emerging Carbon Pricing Instruments in Central Asia

Abstract

Central Asian countries are highly vulnerable to climate change and heavily reliant on fossil fuel resources. All countries need to decarbonise their economies for sustainable growth and to meet their Paris Agreement goals. Within this global challenge, there are significant opportunities for Central Asian countries, such as attracting green investment through the expansion of renewable energy, phasing out fossil fuel subsidies and improving energy efficiency. This chapter presents the results of a study that investigated how carbon pricing instruments are currently used in Central Asia and what the future holds. The study determined that CPI and decarbonisation strategies are now being considered by Central Asian countries at different levels. A SWOT analysis of carbon pricing instrument implementation revealed ways to facilitate the implementation of carbon pricing to decarbonise the regional economy. The study also identified a list of mid- and long-term decarbonisation activities for governments and other stakeholders, and analysed opportunities to strengthen regional cooperation.