The effectiveness of climate financing intermediaries: comparative study of Kazakhstan and Ukraine

Abstract

This research is focused on identifying the effectiveness of climate financing intermediaries based on the comparative study of Ukraine and Kazakhstan. Main aim of the research is to analyze main differences of activities of financing intermediaries in distinct states. Kazakhstan and Ukraine, two CIS countries have similar environmental description, but not alike commitments to climate issues. Ukraine is the best post-Soviet country through climate change performance indicators, while Kazakhstan is believed to be in the bottom of this list worldwide. The hypothesis testing showed that the quantity of the intermediaries in the state does not play a vital role, as three global intermediaries as EIB, EBRD, and IBRD that can be found in both states, showed different performance, resulting being more active and advanced in Ukraine than in Kazakhstan. This relates to the state’s general interest in committing more actions into its own environmental policies. Kazakhstan, according to postcolonial theory, emphasizes economic benefits more than environment, whereas Ukraine pays more attention to renewable energy and climate change. Therefore, what makes the intermediary better in Ukraine is its close cooperation with the global institutions that provide such financing. After the Euromaidan and war in Donbass, Ukraine changed its political direction to Europe, where largest intermediary – EBRD – is based. To maintain independence from Russia, Ukraine strongly determined to switch to renewable energy. That is why its cooperation with EBRD, and other intermediaries is substantially emphasized by government.