Political will is the key to Kazakhstan's transition to a green economy, says a Latin American expert

Political leadership and effective policies can be key to Kazakhstan's transition to a green economy, similar to the successful approach in Latin America, said Andres Rebolledo, Executive Secretary of the Organization for Latin American Energy (OLADE) and Honorary Consul of Kazakhstan in Chile.

Lessons from the Latin American region

Latin America is one of the world's most dynamic and resource-rich regions. There are areas with significant solar potential, as well as dozens of sites for wind and hydropower. Due to its rich natural resources, the region has a huge potential for renewable energy.

"We can say that we are the greenest region in the world. Not only in the primary energy matrix, but in particular in the production of electricity. Today in Latin America we generate 65% of our electricity from renewable and clean energy. This is the highest percentage of any region of the world that you analyze,” Rebolledo said.

However, the problem is that at least 40% of renewable energy comes from hydropower.

“It's important because it's easy to [generate] with renewables, but it's difficult in the medium to long term because of climate change. Today, there are some countries in Latin America that face the problem of electricity supply due to the scarcity of water resources. So we have to diversify the use of water and also include these non-traditional renewable energy sources like solar and wind or technology,” said Rebolledo.

The shift in global market prices for clean energy has benefited Latin America as technology costs have plummeted. According to Rebolledo, this trend could also benefit Kazakhstan.

“I want to remind people that renewable energy is not only the solution to a more sustainable economy, but also a more competitive economy. What does it mean? Today, renewable energy sources are cheaper than traditional ones. So when you can include a solar or wind system in your matrix, you change not only to be more responsible in your commitment to climate change, but also you become more competitive because the technology, at least in the case of many countries in Latin America and I guess Kazakhstan are helping us reduce the pressure on the final energy price process,” said Rebolledo.

The decisive role of state policy

Rebolledo emphasized the importance of a state policy that prioritizes the energy transition.

"It was a very important political approach in Latin America. I believe that ultimately one of the most important elements to move forward [in the energy transition] is the political decision and the mobilization of the remaining players in the electricity industry,” he said.

“The second point is that it is equally important to have carbon neutrality in the near future, because that means you have to take all the steps in your political and economic decisions. In the case of Latin America, there are many countries that have decided to achieve carbon neutrality and zero emissions by 2050. So there's not only an end goal, but also goals during the phase-out period," Rebolledo said.

Kazakhstan has committed to achieving its carbon neutrality goals by 2060 and is developing a roadmap to implement the strategy. The country is also attracting investors to explore the country's renewable energy potential, providing stability and predictability to environmental investors.

"I have a general idea of the approach that the president [Tokayev] and the government of Kazakhstan decided to include private investment in the economy to diversify the participation of capital coming from different countries, so as not to be dependent on the public sector as the main gene of the economy, but also to have more additional actors in the economy. I think that's a pretty important element to envisioning continued, sustainable economic growth," Rebolledo said.

According to Rebolledo, an open economy has been important for energy-related investments and has been vital to the success of high-profile emissions reduction initiatives in Latin America .

"We are developing countries, but we have made progress in the last 30 years and the formula is to open up our economy and invite different players to our countries," he said.

Prospects of regional cooperation

To emphasize the importance of engagement with Chile and the wider Latin American region, Rebolledo highlighted the complementary nature of their economies, particularly in the mining sector. The Latin American region is particularly rich in important minerals.

“I think we are very complementary countries in the mining sector, even though we have different sub-sectors of the mining industry. In the case of Latin America, not only do we have regional mines like copper, but today we also have very strategic and critical mining for the energy transition, like lithium or cobalt, for example in the case of Brazil,” said Rebolledo.

In turn, Kazakhstan is developing the production of rare earth metals, which is strategic for electronics and components of clean energy technologies. With 15 deposits of rare earth elements , the country strives for closer cooperation with international partners to reveal the wide opportunities that these deposits open.

The Central Asian region can also attract investors due to its critical geopolitical location, including access to the Chinese market.

"I think that the position of Kazakhstan on the world map is very interesting, because you are in the center of the most dynamic region of the world and you have connections. So I really think Kazakhstan has a role for Latin American investors as a platform to invest in some interesting sectors in Kazakhstan. Not only to provide products or services to Kazakhstan as a domestic market, but also to the rest of the region around Kazakhstan, such as China,” said Rebolledo.

The role of an honorary consul

As Kazakhstan's honorary consul in Chile, Rebolledo sees part of his goal as building new partnerships outside of established alliances.

"I think the procedure is very interesting. One of the specific responsibilities that you have to fulfill is to show your people in Chile, the private sector and the government what Kazakhstan is and why it is important to have a close relationship with Kazakhstan, what is happening in Kazakhstan in terms of reforms, what economic trends have been in Kazakhstan during the last year and what will happen in the future," explained Rebolledo.

Chilean companies are interested in exploring Kazakhstan's mining industry.

"This year, only two or three people went to Kazakhstan as tourists. The rest of the people want to do business in the mining industry. This is impressive. Because they know they are a very complimentary economy. So I think there is an interesting opportunity to participate and do business,” he said.