EBRD and key stakeholders help decarbonise Kazakhstan’s fossil fuel and aviation sectors

• EBRD leads efforts to develop the production of sustainable aviation fuel 
• KazMunayGas and Air Astana to work on decarbonising the aviation industry 
• First Central Asian facility producing sustainable aviation fuel to open by 2029

The European Bank for Reconstruction and Development (EBRD) is contributing to the decarbonisation of aviation in Kazakhstanand beyond by commissioning and completing a feasibility study on the production and use of sustainable aviation fuel (SAF). 

The study was carried out by ICF, a global advisory and technology services provider and funded by the government of Japan through the Japan-EBRD Cooperation Fund. It was supported by  Kazakhstan’s leading vertically integrated state-owned oil and gas company KazMunayGas (KMG) and the national carrier Air Astana (AA). 

The aviation industry is one of the world’s largest emitters of greenhouse gases. To help develop an effective approach to reduce these emissions and decarbonise the sector, the study reviewed the decarbonisation strategies of key stakeholders, analysed the global SAF landscape, examined its supply and demand as well as the availability of feedstock. 

A Memorandum of Understanding (MoU) signed today between KMG and AA is a culmination of these efforts. It will pave the way for a deeper cooperation between the parties, leading to the manufacture and use of SAF in Kazakhstan. The MoU represents a significant step towards meeting the country’s net zero targets and puts Kazakhstan at the forefront of efforts to decarbonise the aviation sector and reduce the consumption of fossil fuels.

EBRD acting Managing Director for Central Asia Hüseyin Özhan said: “We are a climate finance leader aiming to become a majority green bank by 2025. The EBRD is already working with KMG and AA, our investee company, towards achieving their carbon neutrality targets. This MoU on SAF is an important step towards developing a green, low carbon and resilient economy in Kazakhstan.”

In line with the MoU, the companies will join forces to launch the first SAF production facility in Central Asia by 2029. 

Regulatory support for this initiative was provided by the Aviation Administration of Kazakhstan.