ADB and Kazakhstan Partner to Accelerate Coal Plant Retirement 

The Asian Development Bank (ADB) and the Government of Kazakhstan made a significant move toward the possibility of retiring a coal plant earlier than expected through ADB's Energy Transition Mechanism (ETM) initiative.

At COP29, an MOU was signed to reduce Kazakhstan's greenhouse gas emissions through a pilot project transitioning from coal.

Paving the Way for Coal Plant Retirement in Kazakhstan

ADB and Kazakhstan's Ministry of Energy will collaborate on a sustainable pilot project for decommissioning or converting a coal plant.

A feasibility study will identify the most suitable coal-fired power plants, combined heat and power plants, and boilers for retirement.

Yevgeniy Zhukov, the ADB Director General for Central and West Asia said, “Keeping 1.5 degrees alive means moving away from fossil fuels and toward clean energy as quickly as possible—and ADB’s ETM program aims to do that in a way that considers each country’s energy and socioeconomic development needs.”

He added, “As Asia and the Pacific’s climate bank, we are committed to helping Kazakhstan decarbonize its economy in a way that is just and inclusive, and we aim to demonstrate how the clean energy transition can be accelerated in Central Asia.”

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Kazakhstan’s Path to Carbon Neutrality

Kazakhstan, which holds significant coal reserves—ranking eighth globally—currently derives approximately 70% of its electricity from coal. Energy-related activities, including heating and power generation, are responsible for over 80% of the nation's greenhouse gas emissions.

The government plans to reach carbon neutrality by 2060, emphasising a transition from fossil fuels to renewable energy sources.

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ADB and the Kazakh government have also committed to evaluating the implications of early plant decommissioning on the country’s power and heating needs, along with exploring possibilities to enhance renewable energy and promote regional energy trade. This partnership includes joint research, capacity-building initiatives, consultations, and the sharing of best practices.

ADB's ETM program seeks to replace coal in Asia-Pacific by using concessional and commercial financing for clean energy transformation.