The EAEU Member States and the Green Climate Fund: prospects for coordinated cooperation in the field of climate finance

Shugurov Mark Vladimirovich ORCID: 0000-0003-3604-3961 Doctor of Philosophy Professor of the Department of international law, Saratov State Law Academy 410028, Russia, Saratov, Volskaya str., 1 shugurovs@mail.ru Other publications by this author

The research was carried out at the expense of a grant from the Russian Science Foundation No. 23-28-01296, https://rscf.ru/project/23-28-01296/

Introduction

A feature of the current stage of response to climate change has become the involvement of integration associations of states (ASEAN, EU, EAEU, etc.) in this process. Within their framework, at the regional level and based on concerted efforts, the tasks of mitigating and adapting to climate change are being solved. The efforts of the member States of integration associations are combined within the framework of the development and implementation of the regional climate agenda, numerous aspects of which are further reflected in the law of integration associations, which becomes an instrument for harmonizing the national legislations of the member States in the climate sphere.

One of the aspects of climate policy, not only at the global and national, but also at the regional level, is the solution of issues related to the formation of modern climate finance regimes as an integral part of "green" financing. The mobilization of funds for a variety of climate projects, including technological aspects, is carried out not only from internal, but also from external sources. The global Climate Finance System, which supports projects and programmes in the field of climate change mitigation and adaptation, is very valuable for developing countries and countries with economies in transition. For such States, not only international development banks (MDBs), but also global environmental funds are of particular value. One of these is the Green Climate Fund (hereinafter referred to as the CCF, the Fund), which simultaneously acts as an operational financial mechanism for the United Nations Framework Convention on Climate Change (hereinafter referred to as the UNFCCC) and the Paris Climate Agreement. In the event that the States whose climate projects are supported by the Fund are part of a regional association of states, then there is an agenda for coordinated interaction with the latter, as well as with other funds and MDBs.

An example of a regional association to which this pattern applies is the Eurasian Economic Union (hereinafter referred to as the EAEU, the Union). Its peculiarity is not only the significant dynamics of integration processes, but also the consistent development of the agenda of integration cooperation. Over the past few years, the economic cooperation agenda has been supplemented not only by a digital, but also by a "green" agenda aimed at the environmental formatting of economic development and industrial and technological cooperation of the member States. Within the framework of the "green" agenda, the Union's climate agenda has been formed in recent years.

The EAEU, like other associations of states of an integration nature, pursue an active foreign policy and actively position themselves in the international arena. The Union claims to become one of the authoritative and influential centers of the modern world. This, among other things, means its involvement in the technological "race". Since the modern technological transition is set by the paradigm of low-carbon development, it became quite logical to form an integration climate agenda. This trend is rooted in the climate policy pursued by the Member States. The mentioned agenda also implies the harmonization of carbon regulation in the Eurasian space. Another item on the agenda is the development of "green" and climate finance, which involves active interaction with international financial institutions, which represent not only sources of financial resources, but also "knowledge banks". The CCF is among such structures that the Union is interested in cooperating with.

Three States, namely Kyrgyzstan, Kazakhstan and Armenia, are recipients of the Fund's financial resources allocated for the implementation of various projects and programs in the climate sector on a shared basis. In turn, Russia is a voluntary donor to the Fund, and Belarus expresses interest in cooperation with it. At the same time, the integration format of the climate agenda requires the development of a policy of multilateral coordinated cooperation with the Fund.

In accordance with the stated substantive prerequisites of the study, its goal is to substantiate the need to transfer the interaction of the member States of the Union with the Fund into the mainstream of convergent multilateral cooperation.

Research tasks include the following:

- conducting an analysis of the climate policy of the EAEU member States aimed at fulfilling voluntary commitments under the UNFCCC and the Paris Climate Agreement;

- determination of the state of climate finance in the EAEU countries;

- a comprehensive analysis of projects and programs supported by the Fund and in which the EAEU states belonging to the first group participate;

- determining the directions for the EAEU member states to move towards the mature stage of their interaction with the Fund;

- forecasting the Fund's possible contribution to the development of the EAEU climate agenda and support for integration climate projects;

- substantiation of the prospects for including interaction with the Fund in the directions of the Union's international activities.

The presented study is aimed at testing the hypothesis, which consists in the provision that the EAEU as an integration association of states in the process of forming and implementing its climate agenda is open to interaction with international structures, in particular with the CCF.

The novelty of the research is as follows:

- based on the available literature, a new direction of research on the EAEU climate policy has been identified and justified for the first time, which consists in attracting financial resources from the CCF to solve the problem of developing a system of "green" and climate finance at the level of the Union and its states as a whole;

- for the first time, an analysis of the interaction of the EAEU states with the Fund was conducted in a comparative manner at the level of a thorough and comprehensive scientific study;

- the interaction of the EAEU states with the Fund is shown as arising from internal prerequisites, namely the need to achieve the goals and objectives of the national climate policy, an integral part of which is the development of a national system of "green" and climate finance;

- It has been established that the CCF, at the level of supported programs and projects, not only contributes to the improvement of the climate policy of the member states, but also contributes to the development of the base of climate technologies in the Eurasian space. This is especially important due to the fact that, in the context of sanctions against some Member States, problems have arisen with access to external "green" financing and "green"/climate technologies;

- it has been proven that the Fund can contribute not only to the implementation of the climate agenda, but also to the implementation of a broader "green" agenda of the Union;

- the idea of possible participation of the Fund in support of joint climate and "green" projects of the EAEU has been formulated;

- it is proved that the emergence of institutional relations between the EAEU and the Fund will contribute to strengthening the international positioning of the Union, which means its integration into the system of global "green" and climate finance.

1. Materials and methods

In the process of achieving the research goal, testing the hypothesis and solving the tasks set, the author used the widest amount of data and statistical materials that were subjected to empirical analysis:

1) statistical data reflecting the negative impact of climate change on the EAEU member States;

2) data provided by official documents that consolidate the directions of the national climate policy, as well as the climate agenda of the EAEU;

3) information on the activities of the CCF and projects that are being implemented in the first group of EAEU states;

4) data on the policy of the EAEU member States in the field of climate finance;

5) materials from electronic media and Internet resources on the development of partnership between the EAEU states and the Fund.

In the process of conducting his research, the author used the following methods and approaches:

- the historical method was used to reveal the patterns of development of cooperation between the EAEU member states and the Fund over time;

- the comparative method made it possible to compare the achieved level of cooperation between the EAEU member states and the Fund and the degree of their advancement towards direct interaction with it;

- the systematic approach became the basis for identifying the degree of involvement of the issues of cooperation with the Fund in line with the climate agenda of the Union and its member states;

- the discursive analysis was used in the process of studying the attitude of the official circles of the EAEU states to the Fund in the process of interactive interaction with its representatives;

- the modeling method made it possible to form a theoretical structure of interaction between the EAEU as an integration association of states and the Fund;

- The predictive method has become the basis for the development of a possible agenda for cooperation between the Union and the Foundation.

2. Literature review

1. The issues of "green", as well as climate finance in its composition, are widely discussed in the world scientific literature ^[1-9]. The scientific works of researchers from the EAEU states also belong to this subject field. A number of similar studies are devoted to the development of "green" and climate finance in the member states of the Union, for example, in Russia ^[10-12], in Kazakhstan ^[13-14], as well as within the framework of the EAEU as a whole ^[15-17].

However, these scientific studies lack a detailed and comprehensive analysis of the climate finance regime from external sources, including the resources of the CCF, at the level of the Union and its member States.

2. The problem of forming an effective climate finance system is not only an integral part of the climate policy of the member States, but also of the Union as such. The analysis of the directions of formation of the integration climate agenda of the EAEU has become the subject of a detailed analysis carried out by representatives of the scientific and expert community ^{[18, pp. 46-48; 19-20]}.

This kind of research is a segment aimed at analyzing the content of the "green" agenda of the EAEU as a whole, including the development of "green" technologies ^[21-26]. As M.G. Shadiyan notes, "the EAEU member states are at different levels of implementation of the green agenda, but in general, all states understand that ignoring the global climate agenda and procrastination in the transition to a low-carbon economy lead to high risks and costs. Conversely, timely transformation brings many opportunities, including in the direction of improving the standard and quality of life of the population, preserving natural resources, modernizing economic sectors, increasing efficiency and productivity, etc." ^{[15, p. 145]}.

In one authoritative scientific and analytical report, it was proposed to form a package of joint "green" and climate projects that can be funded by national development institutions and/or the Eurasian Development Bank. No less interesting is the proposal to focus efforts on coordinating "the green financing systems of the EAEU countries and, above all, green taxonomies, using as a basis the common goals of environmental and climate policies of the EAEU countries and Greater Eurasia" ^{[27, p. 50]}.

3. The topic of interaction between the EAEU member states and the CCF is widely discussed by representatives of the expert community and finds its coverage on the Internet. However, we have to admit the lack of special scientific research that would be devoted to the interaction of the EAEU member states with the CCF, including in a comparative way.

4. In the course of the author's efforts to analyze the array of existing literature, it was found that the number of scientific papers devoted to the CCF is still insignificant ^[28-30]. Therefore, it is far from accidental that the analysis of the Fund's interaction with the EAEU and its member states has not yet become the subject of special research.

3. The EAEU Climate Agenda as the basis for the integration policy of climate finance

In a situation of rather drastic climate changes, the opportunities for sustainable economic growth and, as a result, sustainable social development are being undermined. Therefore, an increasing number of States and their integration associations are raising the issue of ways to ensure environmental and climate security. Accordingly, the issue of climate finance is also actively developing at the integration level.

On the eve of the 26th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (hereinafter - UNFCCC) in Glasgow, at a meeting of the Supreme Eurasian Economic Council on October 14, 2021, a Statement on Economic cooperation of the EAEU member States within the framework of the Climate Agenda (2021) was adopted (Statement on Economic Cooperation of the Eurasian Economic Union member States the Economic Union within the framework of the climate agenda (14.10.2021). URL: https://eec.eaeunion.org/upload/medialibrary/966/Zayavlenie-ramka-.pdf ). The document reflects the position of the EAEU member States on the global and regional aspects of the climate agenda.

In particular, in the preamble, the EAEU member States stressed that responding to the challenges of climate change should take the form of processes of profound changes in the global economy, including causing a comprehensive technological transformation of production and a significant change in the structure of the world economy, which will be dominated by production and technologies with low greenhouse gas emissions.

Indeed, one of the central points in the Statement was the discussion of the technological aspects of the climate response. As you know, achieving environmental safety has a significant place in the 2030 Agenda for Sustainable Development. This implies not only efforts to further greening production based on "green" technologies, but also adaptation to climate change and mitigation of its consequences. The use of such a category of "green" technologies as climate technologies serves as a means to achieve this goal ^[31].

In line with current trends, the Statement recognized the importance of broad international exchange and non-discriminatory use of technologies that ensure emission reduction and low-carbon development. At the same time, the effective and rational use of fossil sources, nuclear energy and hydrogenation, low-carbon transport, the introduction of hydrogen technologies, renewable energy sources, energy-efficient approaches and technologies in industry, agriculture and housing and communal services were emphasized. This once again confirms that climate change is not a purely environmental problem. In the context of the economy, the climate agenda involves the technological transformation of production processes and the transition to a new technological base. Success in the transition to the latter is a key condition for the competitiveness of the economy. Moreover, climate change is a global challenge for all mankind, affecting all aspects of society and requiring comprehensive approaches and integrated solutions. It is quite obvious that this approach sets the directions for economic and technological cooperation between the EAEU member states.

A feature of the integration processes within the EAEU has become the gradual involvement of scientific and technological cooperation in its orbit. Today, it is essential not only for the modernization of production and economic activities, but also for the inclusion of production and consumption in the outline of the transition to sustainable development and the achievement of its goals at the regional level. Consequently, the horizon of scientific and technological integration is expanding, which, however, correlates with the expansion of the integration agenda of the Union, including by including a block of environmental issues. Without solving the latter, solving economic issues is already unthinkable today. In other words, achieving the goals of the Union and increasing its competitiveness should focus on ensuring environmental safety: its achievement, in turn, is a guarantee of sustainable economic growth. As noted in the expert environment, the EAEU states should take into account not only the economic benefits arising from the free movement of goods and services, but also the need to prevent and eliminate environmental threats in the region in the context of the prospects for the joint use of natural resources, complemented by the possibility of profitable investment in this area ^[32].

The demand for "green" technologies in general and climate technologies in particular is typical for the EAEU. And this is not accidental, because Russia, as well as Kyrgyzstan, are most intensively experiencing the negative effects of climate change. This issue is no less relevant for Kazakhstan, Belarus and Armenia. The EAEU States are Parties to the UNFCCC, as well as the Paris Climate Agreement, according to which they have adopted national commitments in the field of reducing greenhouse gas emissions (hereinafter referred to as GHGs). It should be noted that both of these international treaties provide for provisions on the development of international scientific and technical cooperation, which has been studied in sufficient detail in the literature ^[31]. The main beneficiaries of these provisions are developing countries.

Currently, the EAEU law does not provide for obligations on cooperation in the field of climate technologies at the regional level. However, the demand for such cooperation stems directly from the provision contained in the 2021 Statement. From our point of view, this implies the intensification of scientific and technological cooperation in the field of development and commercialization of energy, agricultural, transport, industrial technologies, as well as the development of industrial cooperation.

As follows from further developments, the Statement defined the vector of convergence of approaches to monitoring and verification of GHG emissions and uptake, and also articulated the need for harmonization of carbon regulation. In essence, this implies the harmonization of the climate policies of the Member States. In any case, the technological aspects of responding to climate change are inextricably linked to solving financial issues of supporting relevant projects and initiatives. As a consequence of the convergence of the approaches of the member States, the document highlights not only the consideration and development of the absorption capacity of ecosystems, but also the promotion of the use of green finance tools to support climate projects and the transfer of the best available technologies. Thus, "green" and special climate financing is considered as an aspect of the Union's climate agenda.

Of course, the allocation of this aspect is very general and requires further specification. It is safe to say that the widespread development of climate finance in the integration format of the Union involves not only the creation of joint climate funds, but also preparation for the implementation of joint climate projects as a kind of "green" projects.

It should be emphasized that the "green" agenda in the EAEU is at an advanced stage of formation. The achievement of cooperation in this area should include the approval of criteria for "green" projects of the Union, or the so–called model taxonomy (Criteria for "green" projects of the member states of the Eurasian Economic Union // Eurasian Economic Commission. URL: https://eec.eaeunion.org/upload/medialibrary/df7/Kriterii-dlya-opublikovaniya-_ Modelnaya-taksonomiya_.pdf). The relevance of the criteria was caused by the fact that in the EAEU there is a heterogeneity in the integration of the climate agenda into the legislation of the member states, and the mechanisms of "green" financing are at various stages of maturity. Therefore, the impetus for the development of a Model Taxonomy of the EAEU, which takes into account the criteria and approaches used by the world community, was the need to harmonize national approaches in defining criteria for climate projects. The criteria were approved in December 2022 at a meeting of the High–level Working Group on developing proposals to bring the positions of the member states of the association closer together within the framework of the climate agenda. Their practical significance lies in creating a basis for the unification of approaches to "green" financing within the EAEU and the financial instruments used (issuance of "green" bonds, "green" loans), which leads to easier access for national investors to the financial markets of the EAEU countries and, ultimately, can lead to an increase in investments in reducing GHG emissions.

As part of the implementation of the EAEU climate agenda, the Bank of Climate Technologies and Digital Initiatives was established, which currently includes about 100 projects (Bank of Climate Technologies and Digital Initiatives // Eurasian Economic Commission. URL: https://eec.eaeunion.org/comission/department/dotp/klimaticheskaya-povestka/bank/). The Bank is designed to create conditions for accelerating and simplifying the diffusion of technological developments in the EAEU countries and, which is extremely promising, will allow the formation of joint low-carbon projects and begin their implementation. In 2023, the Concept of implementing the principles of the "green" economy in the Eurasian Economic Union was adopted (The Concept of implementing the principles of the "green" economy in the Eurasian Economic Union // Eurasian Economic Commission. URL: https://eec.eaeunion.org/upload/files/dep_makroec_pol/green_economy.pdf).

In principle, the EAEU climate agenda, reflected in the 2021 Statement, represents a set of main areas of interaction. The mechanism for their implementation is the First package of measures (roadmap) for cooperation between the EAEU member states within the framework of the climate agenda. It was agreed upon during the work that was carried out in 2021-2022 at the site of the High–level Working Group on developing proposals to bring the positions of the EAEU member states closer together within the framework of the climate agenda. In addition, there is a separate subgroup whose task is to develop proposals for the formation of a joint approach within the EAEU in relation to the implementation of paragraph 2 of Article 6 of the Paris Agreement, including provisions on the treatment and recognition of carbon units, common approaches in the member States to the accreditation of validation and verification bodies in the field of climate protection.

The purpose of the package of measures is to overcome barriers and restrictions in the internal market of the Union and preserve the competitiveness of the economies of the EAEU member states in the context of global technological transformation and general changes in the structure of the world economy. The package of measures was adopted on October 21, 2022 at a meeting of the Eurasian Intergovernmental Council and includes the following areas of action:

- conducting an analysis of national legislative regulation in the climate sector and preparing proposals for the development of common approaches in this area;

- development of proposals for the formation of joint market and non-market carbon regulation mechanisms to achieve the goals of the Paris Agreement;

- definition of measures to stimulate low-emission transformation in the following industries, taking into account competence – transport, energy, metallurgy, chemical industry, construction, agriculture;

- Development of Eurasian low-carbon development initiatives;

- development of "green" financing;

- formation The Bank for Climate Technologies and Digital Initiatives;

- coordination in the field of international trade relations on the climate agenda and other interaction in order to promote the interests of the EAEU member States in the climate sphere in the international arena.

A review of the directions shows that these directions fully correspond to the contours of the climate agenda. The greatest interest is in highlighting the interaction in order to promote the interests of the EAEU member states in the climate sphere in the international arena. Of course, it must be coordinated. This is an integral part of coordinating approaches to the implementation of the climate agenda in the Eurasian space as such. The EAEU recognizes that "consistency of actions on the Union circuit is the key to both the stable functioning of the EAEU internal market and the sustainable development of our economies. It is necessary to harmonize approaches to carbon regulation and the creation of infrastructure for the implementation of climate projects and the use of their results in order to prevent discrimination against the industry of our countries due to differences in carbon prices and regulatory rigidity" (Synchronization of approaches on the climate agenda became the main topic of the EAEU seminar (01/26/2023). URL: https://economy.gov.ru/material/news/sinhronizaciya_podhodov_po_voprosam_klimaticheskoy_povestki_stala_glavnoy_temoy_seminara_eaes.html. The purpose of synchronization is to avoid restrictions on trade, investment and technology.

It seems that the creation of infrastructure for the implementation of climate projects includes not only an internal, but also an external contour, which, in principle, acts as a bridge to the international climate system and to the regimes of international financing of climate projects. The internal and external contours of climate action are a space for the active work of the Eurasian Economic Commission and its structures.

The formulation of the mentioned direction is abstract. It can be interpreted as suggesting interaction with various international structures and forums in the field of the global climate agenda. One of the types of such structures includes international financial organizations that support projects in the field of adaptation and mitigation of the effects of climate change. These include the European Bank for Reconstruction and Development (hereinafter – the EBRD), the World Bank, and the Asian Development Bank. Cooperation within the framework of the UNFCCC is characterized by an increased degree of relevance. Recall that its financial mechanism includes not only the Adaptation Fund and the Global Environment Facility, but also the CCF.

The interaction of the EAEU with these international structures of global climate finance grows both from the integration climate agenda and from the interaction of the member states with these financial structures. The fact of interest in cooperation with the CCF should be explained by two reasons. Firstly, it is the lack of financial resources intended for the implementation of climate projects in the EAEU member states, and secondly, it is the lack of a financing mechanism for the integration of climate projects of the Union. As the Russian authors note, there are no specific measures within the framework of the association to finance "projects in the field of nature management and environmental protection. This is largely due to the fact that the budget of the EAEU, formed from contributions from member countries, is directed to the activities of the management staff and meetings" ^{[18, p. 47]}.

Of course, there must be a balance between the inner and outer contour. This means that setting up interaction with international structures based on developing a consolidated position on the formation of appropriate platforms for dialogue should be balanced with solving the practical task of forming a common voluntary market for carbon units. In the latter case, there is a wide field for joint actions, for example, on mutual recognition of national accreditation systems for validation and verification bodies, the development of standards and methodology for climate projects, the coordinated development of registries, and the organization of trade in carbon units.

The need for interaction with the Fund at the integration level stems, firstly, from the existing experience of cooperation with it in some States of the Union. Secondly, the EAEU has taken an important step towards the development of joint climate projects. Thus, in June 2023, the Eurasian Intergovernmental Council analyzed in detail the implementation of the First Package of measures (roadmap) for cooperation between the countries of the Eurasian Economic Union within the framework of the climate agenda. It was mentioned above.

Based on the comprehensive report of the Eurasian Economic Commission, which analyzed the national legislation of the member States of the Union and its main trading partners in the field of low-carbon development, the heads of government of the Union countries instructed to develop approaches to regulate the issues of the climate agenda within the framework of the EAEU. It is assumed that these approaches should provide for the implementation of cooperative climate projects in the context of stimulating low-carbon development (the Heads of Government of the EAEU countries were instructed to develop approaches to regulate issues on the climate agenda (06/09/2023). URL: https://eec.eaeunion.org/news/glavami-pravitelstv-stran-eaes-porucheno-razrabotat-podkhody-po-regulirovaniyu-voprosov-klimatichesk/). In particular, we can talk about creating conditions for the circulation of the results of the implementation of cooperative climate projects by interested Member States and third parties, taking into account international trends.

4. The role of the Green Climate Fund in the global climate finance system

Within the Union, its member States retain the sovereign right to international activities, which nevertheless tend to be coordinated. It seems that the coordination of multi-vector cooperation will ensure environmental safety as a condition for the sustainable development of the EAEU economy and a factor in achieving the goals set out in the Treaty on the Union. Based on the principle of a close meaningful connection between internal and external cooperation, significant prospects exist for the interaction of the Union and its member States with international structures, in particular with the CCF. Understanding the importance and prospects of their interaction is based on an awareness of the place and role of this Fund in the global climate finance system.

As such, climate finance is defined as the allocation of funds from public and private sources in order to adapt and mitigate the effects of climate change. As a result, GHG emissions are expected to decrease, their absorption will increase and adaptation to climate change will increase. The goal of mitigation in the framework of climate finance is to ensure the transition to green development and achieve carbon neutrality. The goal of adaptation is to provide financing for climate resilience and reduce vulnerability.

The CCF represents a prominent link in the global climate finance system. It was established in accordance with paragraph 102 of Decision No. 1/CP.16 of the UNFCCC Conference of the Parties in 2010 as an operational body of the financial mechanism of the Convention in accordance with Article 11. After the conclusion of the Paris Agreement in 2015, the Fund began to fulfill the mission of a financial mechanism to achieve the agreed goal of maintaining climate change well below 2°C.

As a financial mechanism of the UNFCCC and the Paris Agreement, the Fund finances projects in the field of low-emission, climate-resilient development based on approved projects and programs for climate change mitigation and adaptation in developing countries. At the same time, the Fund aims to provide equitable financing for interested countries in order to mitigate and adapt. Supported projects and programs are being implemented all over the world, namely in Africa, the Asia-Pacific region, Latin America, the Caribbean and Eastern Europe. During its operation, the Fund has financed 253 projects in 129 countries of the world totaling $13.5 billion (Green Climate Fund. URL: https://www.greenclimate.fund /). These are mainly projects to reduce greenhouse gas emissions in industry and the waste management sector, decarbonize transport, as well as projects on climate change adaptation in agriculture and sustainable forest management.

The Fund offers a wide range of financial products (grants, soft loans, subordinated debt, equity and guarantees). This allows you to flexibly respond to the needs of the project and adapt to specific investment conditions. In the process of fulfilling its mission, it aims to interact directly with both the public and private sectors. He interacts with the private sector through his Private Sector Fund in an effort to attract additional funding. An important element of the project cycle is interaction with accredited institutions. They are institutions that develop proposals for financing projects for which the Fund conducts competitive consideration in terms of their compliance with established financial standards, environmental and social guarantees. During the implementation of projects and programs, he carries out supervision, control, management and monitoring.

Accredited bodies are diverse. These are private, public, non-governmental, subnational, national, regional and international bodies. Direct access institutions can be subnational, national or regional organizations that are designated by national authorized bodies (NSOs) or relevant focal points. International access organizations can be UN agencies, MDBs, international financial institutions and regional institutions. The Foundation proceeds from the fact that such organizations are characterized by a wide range of activities to address various climate change issues, including cross-sectoral thematic areas.

A valuable mechanism of the Fund is the "Readiness Program", which aims to strengthen the capacity of countries to interact with the Fund. The Program supports the development of national climate change adaptation plans and/or activities aimed at improving the ability of interested organizations to apply for accreditation with the Fund, including on an expedited basis.

5. Kyrgyzstan and the Green Climate Fund

5.1. Climate policy of Kyrgyzstan

The Kyrgyz Republic, which belongs to the category of developing countries, faces a lot of challenges, including overcoming poverty, dynamic development of the private sector, increasing employment and income levels, as well as adaptation to climate change. The Kyrgyz Republic ranks 84th in the world in terms of total GHG emissions, and 131st per capita (Climate change, 2021. Physical scientific basis Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change. URL: // https://www.ipcc.ch/report/ar6/wg1/downloads/report/IPCC_AR6_WG1_SPM_Russian.pdf). However, strengthening climate resilience through adaptation measures is one of its key priorities. This is due to the fact that Kyrgyzstan, as a landlocked country where mountain ranges make up more than 90% of its area, is among the most vulnerable countries in Central Asia to climate change. Global warming, which entails a change in precipitation patterns and an increase in temperature, leads to droughts, especially in mountain pastures. Moreover, there is a risk of losing 80% of glaciers by the end of the century. Hence, the development of resilience to the effects of climate change and the creation of conditions for the further sustainable use of natural resources are becoming increasingly important.

The Kyrgyz Republic, as a Party to the UNFCCC, directs its climate policy towards achieving the ultimate goal of the convention. In the Updated nationally determined contribution of the Kyrgyz Republic to the Paris Agreement (INDC) of 2021, Kyrgyzstan announced its intention to increase its climate commitments and in 2025 reduce greenhouse gas emissions by 16.63% of the emissions level under the "Business as Usual" scenario, and subject to international support – by 36.61%. By 2030 GHG emissions are scheduled to be reduced by 15.97% of the emissions level under the "Business as Usual" scenario, and, with international support, by 43.62% (Updated nationally determined contribution of the Kyrgyz Republic to the Paris Agreement (2021). URL: https://kyrgyzstan.un.org/sites/default/files/2021-12/%D0%9E%D0%9D%D0%A3%D0%92%20%D0%A0%D0%A3%D0%A1%20%D0%BE%D1%82%2008102021.pdf). To achieve these goals, the updated INDC focuses on the main sectors (energy, transport, agriculture and forestry, etc.). The main mechanism for its implementation is a Plan to reduce emissions and adapt to climate change.

A prerequisite for the implementation of voluntary international commitments is the implementation of an active climate policy at the national level. As can be seen, the Government of the Kyrgyz Republic is striving to carry out socio-economic reforms by adopting the National Development Strategy for 2018-2040. (National Development Strategy 2018-2040 (Bishkek November, 2018). URL: https://mineconom.gov.kg/froala/uploads/file/7ec5fa875f2dcee2aa785af041a6976f096c0295.pdf ), which defines the multifaceted development of economic activity and is aimed at contributing to the construction of modern and affordable infrastructure, growth and productivity in key sectors of the economy.

The directions of climate policy are also set by Decree of the President of the Kyrgyz Republic No. 77 dated March 19, 2021 "On measures to ensure environmental safety and climate sustainability" (Decree of the President of the Kyrgyz Republic No. 77 dated March 19, 2021 "On measures to ensure environmental safety and climate sustainability". URL: https://cbd.minjust.gov.kg/430478/edition/1088134/ru ), which is complemented by sectoral policy documents in the field of emergencies, health, forestry and biodiversity, agriculture, industry, energy, waste management and water resources. In fulfillment of the commitment of the President and the Government of Kyrgyzstan to fulfilling the international climate promise, the Concept of Carbon Neutrality by 2050 (Concept/Roadmap for Achieving Carbon Neutrality in the Kyrgyz Republic by 2050) has been developed. URL: http://eco-expertise.org/wp-content/uploads/2023/08/Uglerodnaya-nejtralnost-Kyrgyzskoj-Respubliki.pdf) which will be further complemented by the Concept of Environmental Safety. In fact, the country intends to reduce greenhouse gas emissions by 44% by 2030, and achieve carbon neutrality by 2050, i.e. completely abandon carbon energy.

The legislative direction of climate policy includes the improvement of the Law on State Regulation and Policy in the field of greenhouse Gas Emissions and Absorption (Law of the Kyrgyz Republic dated May 25, 2007 No. 71 "On State Regulation and Policy in the field of greenhouse Gas Emissions and Absorption (as amended by the Law of the Kyrgyz Republic dated July 6, 2016 No. 99). URL: https://cbd.minjust.gov.kg/202104/edition/725202/ru ), the formation of a system of national legislation that would not only regulate the emission and absorption of GHGs, but would stimulate innovation and "clean" technologies in order to use resources efficiently while promoting the creation of new jobs. As noted by MP D. Ashimova, "optimizing legislation for the implementation of climate policy is a critical step for us in achieving our goals to combat climate change and ensure environmental sustainability" (A round table on optimizing the legislative framework for the implementation of climate policy was held in Kyrgyzstan (05/8/2024). URL: https://www.undp.org/ru/kyrgyzstan/press-releases/v-kyrgyzstane-sostoyalsya-kruglyy-stol-po-voprosam-optimizacii-zakonodatelnoy-osnovy-dlya-realizacii-klimaticheskoy).

Currently, a National Adaptation Plan (NAP) is being developed for medium- and long-term planning and implementation of climate change adaptation measures in the Kyrgyz Republic (Why is the national adaptation plan so important (https://www.caiag.kg/ru/novosti/815-pochemu-tak-vazhen-natsionalnyj-adaptatsionnyj-plan ). NAP development is a project under the auspices of the United Nations Development Program (hereinafter – UNDP) at the expense of the CCF. Note that the development is complex. The fact is that the adaptation plan at the national level is being developed in conjunction with four plans at the sectoral level, three adaptation plans at the regional level for the most vulnerable areas from the point of view of climate, not to mention the fact that it includes the development of climate statistics with 95 specific indicators in cooperation with the National Statistical Committee and the Hydrometeorological Service.

The establishment of the Climate Finance Center (hereinafter CCF) in 2019 became the institutional basis for fulfilling voluntary commitments, as well as contributing to the formation and implementation of national climate policy. It was created as part of the implementation of the Climate Change Adaptation Pilot Program (PPCR) of Climate Investment Funds (CIFs). Climate Investment Funds were established in 2008 to channel investments and stimulate transformational impacts on low-carbon and climate-resilient development in middle-income and developing countries. On December 5, 2023, at a meeting of the Cabinet of Ministers of the Kyrgyz Republic, it was decided to rename the Climate Finance Center to the Climate Finance Center under the Cabinet of Ministers of the Kyrgyz Republic. The decision to transfer the CCF to the jurisdiction of the Cabinet of Ministers of the Kyrgyz Republic was made in order to improve the effectiveness of coordinating climate finance issues in the country and attract investment in priority sectors of the economy most vulnerable to the effects of climate change.

5.2. Financial aspects of climate change adaptation and mitigation

Within the framework of the Strategic Program of the Kyrgyz Republic on adaptation to climate change, a Climate Investment Program (Climate Investment Program of the Kyrgyz Republic. Project (Bishkek 2024)) was developed // https://climatefinance.kg/wp-content/uploads/2024/03/cip.pdf ). The overall objective of the Climate Investment Program (CIP) is to serve as a working mechanism for managing access to climate finance, along with integrating aspects of adaptation to climate change and promoting synergies in responding to the various climate risks facing the country. The TRC will allow the Cabinet of Ministers to establish a sustainable and consistent process for the development of investment components in the field of climate change adaptation and management, based on existing national policies, sectoral adaptation strategies, concepts and proposals developed by relevant ministries with the support of development partners, coordinating and complementing them.

The TRC identifies both long-term and priority investments that will bring additional benefits by deepening knowledge about climate risks and increasing climate resilience and adaptive capacity in key sectors. The portfolio of proposed investments reflects the concept of adaptation to climate change in the form of a long-term process, in which some activities will be implemented in the near future, while others require longer planning and preparation (for example, related to infrastructure, the anthropogenic environment and industrial sectors).

A portfolio of 24 projects is intended for the implementation of the KIP (Portfolio of projects of the Climate Investment Program until 2026 (Project). URL: https://climatefinance.kg/wp-content/uploads/2024/03/portfel-proektov-kip.pdf ) in sectors such as energy and energy efficiency, agriculture and municipal infrastructure, etc. The portfolio was prepared by the CCF Project Preparation Fund. A significant number of projects are supported by international financial organizations such as the EBRD, the Asian Development Bank, the World Bank and, of course, the WKF.

Kyrgyzstan estimates the cost of mitigation measures in the amount of $ 7 billion, as well as measures to adapt to climate change in the amount of $3 billion (President Sadyr Zhaparov met with Executive Director of the Green Climate Fund Yannick Glemarik (02.11.2021). URL: http://www.president.kg/ru/sobytiya/21099_prezident_sadir_ghaparov_vstretilsya_s_ispolnitelnim_direktorom_zelenogo_klimaticheskogo_fonda_yannikom_glemarikom ). Of course, there is no such amount of resources for climate investments and actions in the republic. On the other hand, international climate commitments should be supported by appropriate financial resources from budgetary and extra-budgetary sources. Climate projects in the Republic are mainly funded by donor organizations and partner countries. Hence the interest in project cooperation with international structures in the field of "green" and climate finance to attract additional resources. Kyrgyzstan is interested in the financial resources of the EBRD, the World Bank, the Global Environment Facility, the Asian Development Bank, and the Climate Investment Fund.

In 2015, the Republic joined the Pilot Program on Adaptation to Climate Change (PPCR) (Kyrgyz Republic – Pilot program to increase resilience to climate change Development of a Strategic program to increase resilience to climate change First joint mission of ICBM specialists (April 18-22, 2016) Explanatory Note May 20, 2016 URL: https://www.cif.org/sites/default/files/meeting-documents/kyrgyz_republic_-ppcr-joint_mission_-_april_18-22_2016_-_aide_memoire-ru.pdf) which is coordinated by the EBRD and supported by the Climate Investment Fund. The program, designed to assist partner countries in integrating climate resilience into national development plans, provides funding for the implementation of innovative solutions in the public and private sectors in relation to the most pressing climate-related risks. Participation in the PPCR allowed the Kyrgyz Republic to develop a strategic mechanism for planning investments in adaptation to climate change. It is precisely the Strategic Program for Adaptation to Climate Change (SPAICC). The latter is aimed at helping to mobilize and maximize the effective use of financing for climate change adaptation in key sectors of the economy. Financial resources come from a wide variety of sources, including PPCR, CCF, MDBs and development partners.

CCF carries out its operational activities within the framework of technical assistance "Financing the creation and operation of the Climate Finance Center of the Kyrgyz Republic" of the EBRD. The CCF is raising funds to implement climate change mitigation and adaptation projects focusing on key sectors such as energy and agriculture. In the energy sector, special attention is paid to projects in the energy efficiency sector of buildings. In agriculture, it is the rehabilitation of unproductive lands, including the introduction of irrigation technologies with an emphasis on the development of agroforestry.

5.3. The project basis for cooperation between Kyrgyzstan and the Green Climate Fund

The Republic is seeking support from the CCF, which provides support to national and regional climate projects, as well as assists in obtaining expert and technical assistance both in the process of their preparation and in the process of their implementation, including the projects of the Fund itself. Cooperation with him makes it possible to find additional resources to solve problems, including those directly related to climate change and negatively affecting the state of agriculture and rural incomes. The cooperation is aimed at enhancing climate financing of national projects and is fully consistent with the tasks set by the Cabinet of Ministers to the Ministry of Natural Resources, Ecology and Technical Supervision of the Kyrgyz Republic and other government agencies to solve the problem of increasing financial assistance in the development and implementation of climate projects. The Ministry of Natural Resources, Ecology and Technical Supervision of the Kyrgyz Republic acts as the national authorized body, which is the link between the country and the CCF.

The CCF continues to work to support the process of developing climate design ideas, which are developed by working groups established on the basis of government agencies, local governments and interested organizations. The presented climate design ideas are being worked out together with experts and consultants in order to match the templates that come from the Foundation. The existing project ideas are entered by the CCF into the climate registry.

Directly related to the climate agenda was the allocation by the Fund of $8.5 million as co-financing of a grant in the amount of $ 10 million for activities aimed at adapting to climate change in terms of improving food security and nutrition (the Green Climate Fund allocates $10 million to Kyrgyzstan in order to improve nutrition in the country (04.12.2018). URL: https://dairynews.today/news/zelenyy-klimaticheskiy-fond-vydelyaet-10-mln-kirgi.html). The UN World Food Programme became a participant in the events, and FAO acted as an accredited structure.

As part of Component 1 "Improving the quality of climate services" of the national Climate Investment Program, the project "Climate services and diversification of climate-sensitive livelihoods to empower vulnerable and food-insecure communities in the Kyrgyz Republic (2021-2024, $8.6 million)" (GCF. SAP002 "Climate services and diversification of climate sensitive livelihoods to empower food insecure and vulnerable communities in the Kyrgyz Republic” (12/22/2021–12/22/2025). URL: https://www.greenclimate.fund/project/sap002). The relevance of the project is determined by the significant exposure of the Kyrgyz food system to climate change, which is primarily experienced by low-income families living in rural areas. The project is aimed at:

· Climate services to support vulnerable rural communities in planning and managing climate risks;

· Strengthening and diversifying livelihoods to enhance the adaptive capacity of vulnerable groups and enhance community resilience;

· Capacity building and decision support to enhance action on climate change using a multisectoral approach.

Thanks to the grant support of the Fund, small farms, the number of which should be about 100 thousand people, will have access to effective practices that can improve the situation in the field of food security.

The aim of another FAO project on forest and pasture restoration in Kyrgyzstan is to promote the development of a low-carbon economy that is resilient to climate change. The fact is that rural households in Kyrgyzstan are significantly affected by climate change as a result of rising temperatures and frequent changes in precipitation patterns, which resulted in an increased risk of floods and mudslides in spring, and severe drought in summer. According to statistics, more than 40% of agricultural land in Kyrgyzstan has been seriously affected by degradation, and more than 85% of its entire territory is affected by severe erosion due to improper management of pastures and forests. This problem is exacerbated by the effects of climate change. A significant problem also lies in the fact that overgrazing has reduced the forests on the mountain slopes due to irrational logging on the mountain slopes. The republic has strongly expressed the need to restore land and forest resources against the background of the demand for methods and means of adaptation to a changing climate.

FAO's cross-sectoral project "Carbon Sequestration through climate investments in forests and pastures", supported by the Fund at the grant level in the amount of $ 30 million (The Green Climate Fund will allocate $50 million for the restoration of forests and pastures in Kyrgyzstan (November 14, 2019). URL: https://news.un.org/ru/story/2019/11/1367161 ), aimed at promoting development low-carbon and climate-resilient economies. This project corresponds to Component No. 2 "Improving the resilience of agriculture to climate change in order to ensure food security" of the national Climate Investment Program. Thanks to a grant of $30 million from the CCF and $20 million received from other project partners (the Ministry of Natural Resources, Ecology and Technical Supervision of the Kyrgyz Republic, the Russian-Kyrgyz Development Fund and the Kyrgyz Community Development and Investment Agency), measures will be taken to restore forest cover and increase pasture productivity. This will intensify carbon sequestration and ensure the stability of natural ecosystems. In addition, forest plantations will become an effective tool for preventing and reducing the risks of natural disasters, including landslides and mudslides, which are quite common in Kyrgyzstan.

As follows from the documentation of the project approved on November 14, 2019 (GCF. FP116. “Increasing carbon sequestration in Kyrgyzstan by supporting climate investments in forests and rangelands" (2023-2030, 30.0 million USD). URL: https://www.greenclimate.fund/project/fp116 ), the results of its implementation should be the reduction of the impact of factors causing land degradation and emissions caused by them, based on the support of national institutions, sustainable management of natural resources based on an ecosystem approach and investments in "green" growth. This will result in the introduction of integrated planning of pasture lands and forest resources that capture carbon, and support the diversification of income-generating activities. It is expected that due to the implementation of the project, over 19.8 million tons of CO2 will be sequestered over 20 years, which in turn will amount to 7.6% of the total emissions in the country and 22.6% of agricultural emissions. Forest plantations will also become an effective tool for preventing and reducing the risks of natural disasters, including landslides and mudslides, which are most common in Kyrgyzstan. As such, the project represents a new approach to forest and pasture management, which will not only reduce vulnerability to climate change, but also find a reasonable compromise between the growth of the country's well-being and the preservation of natural resources. The implementation of the project will allow about 90 thousand vulnerable families in the project area to effectively manage climate risks and diversify their livelihoods.

As mentioned above, one of the latest initiatives was the decision of the CCF to allocate $2.6 million to Kyrgyzstan in order to develop a National Plan for Adaptation to Climate Change (2020) (the Green Climate Fund will allocate $2.6 million to Kyrgyzstan for the development of a National Plan for Adaptation to Climate Change (2020). URL: http://greeneconomy.kg/zelenyj-klimaticheskij-fond-vydelit-kyrgyzstanu-26-mln-na-razrabotku-naczionalnogo-plana-po-adaptaczii-k-izmeneniyu-klimata/). Within the framework of the UNDP/WCF project "Advancing the process of developing a National Adaptation Plan (NAP) for medium- and long-term planning and implementation of adaptation measures to climate change in the Kyrgyz Republic", risk and vulnerability assessments are being conducted, as well as adaptation plans are being developed for four sectors (emergencies, health, agriculture and irrigation, biodiversity conservation). As the monitoring of the interim results of the project showed, an extensive analysis of climatic, sectoral and socio-economic data on agriculture, emergencies, biodiversity conservation and public health was undertaken, as well as vulnerability assessment and adaptation options were formulated. The project at the current stage of its implementation has led to strengthening the capacity of line ministries and their regional structures (Discussion of interim results of national adaptation plans and adaptation measures to climate change in the Kyrgyz Republic (06/5/2024). URL: https://centralasiaclimateportal.org/ru/%D0%BE%D0%B1%D1%81%D1%83%D0%B6%D0%B4).

In addition to these projects, Kyrgyzstan was among the countries participating in the second stage of the SRMI-Resilience project, supported by the Fund for Risk Reduction of Sustainable Renewable Energy Sources (Solar Risk Mitigation Initiative /SRMI). ZKF finances 14.3% of the project budget (Sustainable Renewables Risk Mitigation Initiative (SRMI) Facility (Phase 2 Resilience focus) [SRMI-Resilience]. Decision B.35/05 16/03/2023. URL: https://www.greenclimate.fund/sites/default/files/document/fp204-world-bank-multiple-countries.pdf ), while the rest of the costs were borne by the International Bank for Reconstruction and Development (hereinafter – IBRD) and the International Development Association. Since Kyrgyzstan is pursuing an active policy on the development of the renewable energy segment, this involves attracting financial and investment resources not only from domestic, but also from external sources. And finally, on March 6, 2024, by decision B.38/01 of the Fund's Council, the financing program for the development of electric transport was approved, which will be implemented in a number of countries – Armenia, Georgia, Indonesia, Kyrgyzstan, etc. (FP225: E-Mobility Program (Armenia, Georgia, Indonesia, Kazakhstan, Kyrgyzstan, Nepal, Uzbekistan) URL: https://www.greenclimate.fund/sites/default/files/document/fp225-adb-e-mobility.pdf ) in the amount of $ 170 million. The main donor is the Asian Development Bank. The co-financing of the CCF will amount to 37.4%.

The program aims to support the transition to modern public transport systems that use non-motorized methods and electric micromobility in cities. As a result, there will be an increase in the degree of protection of transport infrastructure from the effects of climate change, such as heat waves, floods and soil erosion, which can cause serious disruptions to urban transport networks. The implementation of the program will contribute to the reduction of greenhouse gas emissions and, according to forecasts, will bring direct or indirect benefits to about 3.7 million people in the countries of implementation.

5.4. Directions for strengthening the capacity of Kyrgyzstan to interact with the Green Climate Fund

Kyrgyzstan is currently on the way to developing its Country Readiness Program, which will allow interaction with the CCF on a solid institutional basis. The program includes training activities, strengthening institutional and human resources, as well as the development of strategies and monitoring systems. This will improve coordination between stakeholders at the national level and at the same time ensure readiness for access to the resources of the CCF.

The accreditation of the Agency for Community Development and Investment of the Kyrgyz Republic (ARIS) has contributed to the readiness for cooperation of the CCF. The decision was made at the 38th meeting of the CCF Council (4-7 March 2024, Kigali, Rwanda). The CCF actively assisted in this process. This was a significant step towards strengthening the country's potential in the field of climate finance mobilization. The condition for mobilization is the development of the potential for the preparation of relevant climate projects and the management of their implementation.

In connection with these plans, on June 25, 2024, the CCF, together with the Ministry of Nature in the Kyrgyz Republic and with the technical support of the German Development Agency (GIZ), held an introductory seminar "Strengthening the capacity of Kyrgyzstan to manage the climate finance process and prepare high-quality projects" (Participation of the Secretariat in the seminar on strengthening the capacity of climate finance (June 25, 2024). URL: https://investmentcouncil.kg/index.php/press-tsentr/novosti/item/1163-uchastie-sekretariata-v-seminare-po-ukrepleniyu-potentsiala-klimaticheskogo-finansirovaniya). The event addressed issues of developing a preparedness program within the framework of the preparatory support of the CCF, as well as key issues of climate finance management and project preparation in accordance with international standards and requirements imposed by the Fund. Among the issues discussed was the development of the capacity of the National Authorized Body for Access to Climate Finance, which is responsible for coordinating the coordination, approval and implementation of climate projects.

A practical training "Improving the competencies of representatives of the National Authorized Body (NSO) and other government agencies in the field of project review" was aimed at improving the skills of the personnel potential of the National Authorized Body for Access to Climate Finance and other stakeholders in relation to aspects of strategic planning, operational activities, and the functioning of advisory and coordination mechanisms in the field of climate finance (26-27 June 2024) ("Improving the competencies of representatives of the National Authorized Body (NSO) and other state bodies in the field of project review" (June 26-27, 2024). URL: https://climatefinance.kg/). This event should be considered as a special platform that allows to strengthen competence in relation to training in the field of procedures related to the selection and approval of projects and coordination of climate initiatives.

As you can see, Kyrgyzstan is involved in cooperation with the Fund to a high degree of intensity. And this is not only the activity of developing and implementing projects, but also holding various events aimed at strengthening business ties. For example, on December 17, 2019, a seminar was held with the participation of experts on interaction with the CCF (Today a seminar for the technical expert group of the Green Climate Fund project was held in Bishkek (12/17/2019). URL: http://www.caiag.kg/ru/novosti/333-zelenii-klimat-fond-ru). The purpose of the event was to familiarize experts representing line ministries with the procedure for evaluating project applications, as well as with the national "no objection" procedure. Meetings of representatives of state bodies of the republic and representatives of the expert community are also held to mark the launch of projects. So, about a hundred representatives of government agencies and the expert community took part in a seminar today, which is designed to launch a carbon sequestration project in the Kyrgyz Republic (A project on restoration of forests and pastures is being implemented in Kyrgyzstan (04/12/2023). URL: https://eco.akipress.org/news:1900502/?from=kgnews&place=maincats)). The participants of the seminar stressed that the project marks a fairly new approach in forest and pasture management, which aims to establish a balance between, on the one hand, the growth of well–being, and, on the other, the preservation of natural resources.

An important event was the holding of the first consultative meeting of the Ministry of Natural Resources, Ecology and Technical Supervision of the Kyrgyz Republic with representatives of the CCF on March 6, 2023 (The Ministry of Natural Resources and Environment held the first consultative meeting with representatives of the Green Climate Fund (03/6/2023). URL: https://climatefinance.kg/news/testovaya-novost-2023/). The discussion focused on the promotion of climate projects and their support from the CCF, which implies further strengthening the potential of Kyrgyzstan's interaction with the Fund.

In conclusion, we point to the visit to Kyrgyzstan of the regional manager of the CCF for Eastern Europe and Central Asia, which took place on June 3, 2024 (Regional visit of a representative of the Green Climate Fund to Kyrgyzstan (06/3/2024). URL: https://climatefinance.kg/news/regionalnyj-vizit-predstavitelya-zelyonogo-klimaticheskogo-fonda-v-kyrgyzstan/). During a series of meetings, the regional manager of the CCF discussed with stakeholders key aspects of cooperation, which include the country program and the portfolio of climate projects. The focus of attention was on the issues of further accreditation of national institutes and development banks under the CCF. This is a very important issue, because the lack of accreditation of national organizations does not allow direct access to the Fund's funds and to receive technical assistance from it. The discussion of the provisions of the basic agreement between the Kyrgyz Republic and the CCF on privileges and immunities also turned out to be in the focus of attention. The conclusion of the agreement will undoubtedly be an important step in strengthening bilateral relations.

6. Kazakhstan and the Green Climate Fund

6.1. Climate policy of Kazakhstan

Today, Kazakhstan is among the countries actively striving to implement a model of sustainable development and transition to a "green" economy. Kazakhstan's "green" course also includes a transition to low-carbon energy. This is provided for by the Strategy to Achieve Carbon Neutrality by 2060, which involves a number of measures to eliminate dependence on fossil fuels, including by identifying key areas of technological development and infrastructure solutions. Kazakhstan, as a country with rich natural resources, attaches particular importance to environmental sustainability issues and recognizes the need to take urgent measures to combat climate change. In its updated nationally determined contribution to the global response to climate change (INDC) The Government of Kazakhstan has set an unconditional goal of reducing greenhouse gas emissions by 15% by the end of 2030 compared to 1990 (Resolution of the Government of the Republic of Kazakhstan dated April 19, 2023 No. 313 "On approval of the updated national contribution of the Republic of Kazakhstan to the global response to climate change". URL: URL: https://faolex.fao.org/docs/pdf/kaz220634.pdf). The conditional goal is to reduce GHG emissions by 25% by the end of 2030 relative to the level of emissions of the base year 1990, subject to significant additional international investments and significant grant assistance, increased access to the international technology transfer mechanism, participation in international research projects and development work in the field of promising low-carbon technologies, and also, the implementation of initiatives to build local expertise.

Currently, Kazakhstan has the largest sources of greenhouse gas emissions in Central Asia. This is due to the fact that about 90% of the country's electricity is generated from fossil fuels. In general, coal accounts for 72% of the satisfaction of energy needs. Therefore, the key task of Kazakhstan is to abandon dependence on coal-fired power plants and search for new sources of energy generation, the need for which will only increase. This implies the greening of industrial enterprises and industries that have a negative impact on the environment, relying on the best available technologies (BAT). The identification of approaches and practices as BAT for a specific application area is carried out through the development of BAT reference books. This is one of the main functions implemented by the International Center for Green Technologies and Investment Projects, which is a subordinate organization of the Ministry of Ecology, Geology of Natural Resources of the Republic of Kazakhstan. The main goal of the Center is to promote "green" technologies and support businesses to increase the competitiveness of the economy, the quality of life of the population and reduce the negative impact on the environment.

One of the ways to solve this problem has become the actualization of attracting investments and financial resources, including from international sources. If you refer to the Code "On Taxes and other mandatory payments to the Budget" (Code of the Republic of Kazakhstan "On Taxes and Other mandatory Payments to the Budget" (Tax Code) (with amendments and additions according to comp. on 07/11/2022). URL: https://online .zakon.kz/document/?doc_id=36148637#sub_id=0 ), then it provides that a grant is a property that is provided free of charge to achieve certain goals (objectives), among other things, by international organizations. In the list of international and state organizations, foreign and Kazakh non-governmental public organizations and foundations mentioned in the Resolution of the Government of the Republic of Kazakhstan dated April 9, 2018 No. 177 “On approval of the list of international and state organizations, foreign and Kazakh non-governmental public organizations and foundations providing grants, and invalidation of certain decisions of the Government of the Republic of Kazakhstan”, there was no mention of the CCF. An important change was brought about by the Decree of the Government of the RCot on September 6, 2022 No. 652, in which the CCF was included in the list of international and state organizations, foreign and Kazakhstani non-governmental public organizations and foundations providing grants (Decree of the Government of the Republic of Kazakhstan dated September 6, 2022 No. 652 "On Amendments and Additions to the Decree of the Government No. 177 of the Republic of Kazakhstan dated April 9, 2018 "On Approval of the List of International and state organizations, foreign and Kazakhstani non-governmental public organizations and Foundations providing grants, and invalidation of Certain Decisions of the Government of the Republic of Kazakhstan". URL: https://adilet.zan.kz/rus/docs/P2200000652#z8 ).

The implementation of Kazakhstan's strategy to achieve carbon neutrality by 2060 requires significant amounts of investment, including financial and grant funds, which can be attracted from international sources. The EBRD acts as a donor, implementing a Strategic Approach for the transition to a "green" economy. In 2016, Kazakhstan took the second place in terms of activity among the countries of the Bank's presence. However, the resources of this financial institution are not unlimited. Therefore, the ZKF acts as another significant international financial organization that is able to provide such an influx.

Cooperation between Kazakhstan and the Fund was carried out even before the latter was indicated in the list of foreign financial organizations providing financial resources to Kazakhstan. Kazakhstan began to implement its policy of strengthening cooperation with the CCF starting in 2016. The priority of their partnership is to attract investments to solve problems related to adaptation to climate change, risk management in connection with adverse consequences and dangerous natural phenomena, technology transfer for the development of clean energy and improvement of the environmental situation in the country (Kazakhstan plans to receive an amount of $250 million from the Green Climate Fund for Development "green technologies in single-industry towns of the Republic of Kazakhstan (09/29/2016). URL: https://caneecca.org/do-250-mln-planiruet-poluchit-kazahstan/).

In 2016, the Ministry of Energy of the Republic worked on drafting an application for receiving from the Fund from $ 100 to $250 million for the development of "green" technologies in single-industry towns. In September 2016, with the cooperation of UNDP and the Ministry of Energy of the Republic of Kazakhstan, a seminar "Strengthening Kazakhstan's interaction with the Green Climate Fund" was held (Kazakhstan plans to receive up to $250 million from the Green Climate Fund (September 6, 2016). URL: https://kazpravda.kz/n/do-250-mln-planiruet-poluchit-kazahstan-ot-zelenogo-klimaticheskogo-fonda /). It announced a forecast according to which Kazakhstan plans to receive grants from the Fund in the amount of $ 250 million. In Kazakhstan, it is understood that obtaining these funds is possible only with the approval of a well-written request for proposal (application). Since the Foundation's projects are result-oriented and involve strict accountability, the priorities that determine cooperation with it are important here. For Kazakhstan, these are issues such as adaptation to climate change, improving risk management resulting from natural emergencies. In addition to the goal of improving the environmental situation, it provides for the development of "green" technologies, including in the energy sector.

6.2. Project cooperation between Kazakhstan and the Green Climate Fund

As expected by the Kazakh side, on October 2, 2017, it was decided to allocate $110 million to Kazakhstan (the Green Climate Fund allocated $110 million to Kazakhstan).$ for the implementation of renewable energy projects (09.10.2017). URL: http://energo-cis.ru/news/zelenyy_klimaticheskiy_fond/?year=2017) for the implementation of renewable energy projects/Renewable energy sources within the framework of the EBRD's Renewable Energy Framework Program aimed at mitigating the effects of climate change. The Fund's support made it possible to increase investments in renewable energy sources as a measure to facilitate the implementation of the country's transition strategy to a "green" economy. One of the problems of this transition is the dominance of coal-fired thermal power plants, which produce 72% of the total energy volume. Against this background, Kazakhstan's high potential in the field of renewable energy remains not fully realized.

Kazakhstan's transition to "green" energy (solar and wind), small hydropower, while simultaneously developing and modernizing the corresponding power grids, is carried out on the basis of attracting funds from foreign sources. Support for national projects for the development of renewable energy infrastructure in Kazakhstan in the mode of co-financing of the special project EP047 by the Fund and the EBRD began in 2018 (GCF-EBRD Kazakhstan Renewables Framework (05/08/2018-05/08/2023). Supporting the construction of 8-11 renewable energy projects in Kazakhstan, with a total capacity of 330 MW. URL: https://www.greenclimate.fund/project/fp047). In fact, the Fund contributes to the implementation of the EBRD Framework Program affecting the field of renewable energy. In addition to providing loans, the program also provides technical assistance, including in relation to the formation of institutional capacity, as well as the development of national climate policy. The amount allocated by the Fund includes concessional financing in the form of loans ($106 million) and subsidies for technical assistance ($4 million). As part of the co-financing in the amount of $ 73.5 million, a project was implemented to build a solar power plant in Sarani with a capacity of 100 MW, which is the largest green energy facility in Central Asia, which will help reduce emissions CO2 by 93,500 tons per year.

Of course, the financing provided by the Fund is quite modest compared to the EBRD's investments in the development of "green" energy in Kazakhstan in the amount of 1.7 billion. euro. However, there is a synergy of interaction, as a result of which the private sector can receive credit incentives to expand investments in the development of the renewable energy sector, mainly solar, wind, small hydropower, as well as to expand investments in the biogas sector. The investments of the ZKF/EBRD are also aimed at supporting projects involving the development of electricity transmission lines and distribution systems, which will ensure consumers' access to environmentally friendly energy. In general, the implementation of national projects should result in the commissioning of new 330 MW renewable energy capacities.

Another program in which Kazakhstan participates and which is co-financed by the Fund is the FP140 program for the development of the corporate sector (GCF. FP140. “High Impact Programme for the Corporate Sector”. (27.08.2021-27.08.2029). URL: https://www.greenclimate.fund/project/fp140). The accredited institution is the EBRD. The relevance of this program lies in the fact that it provides financial assistance in the form of credit lines for the development of low-carbon technologies in the industrial sector. The timeliness of the support is due to the fact that currently emissions from the industrial sector account for about 30% of total global GHG emissions. This mainly occurs at the stage of extraction of primary materials and their subsequent industrial use, including the production of chemicals and fertilizers, pulp and paper, non-ferrous metals, food industry, etc. Once again, we emphasize that the program is aimed at the transition of industry to a low-carbon path of development by promoting the introduction of technologies that have a positive effect in terms of curbing climate change, which is complemented by stimulating new approaches at the corporate governance level.

6.3. Kazakhstan Country Program Development Project

The key instrument of climate policy on the path of sustainable development, which Kazakhstan needs in its long-term cooperation with the CCF, is the process of developing the Country Program "Readiness". The purpose of the Program is to strengthen the country's potential and create favorable conditions for obtaining direct access to the CCF, attracting climate investments and developing a system of "green" finance. Of course, Kazakhstan has been cooperating with the CCF for a long time through accredited international agencies such as the IDB and other financial organizations. However, there is a need to switch to the accreditation of national organizations in the Fund, which will provide direct access to its financial resources. In other words, the Program is designed to serve as an "investment menu" for companies that are interested in developing projects and programs of "green" financing. Moreover, participation in the Fund's projects stimulates the development and use of new technologies, and is also aimed at modernizing outdated infrastructure.

By its nature, the planned Country Program is a strategic document that aims to consolidate the priorities of cooperation between the CCF and Kazakhstan, as well as to consolidate the main directions of their interaction for the coming years. The program will help interested companies and organizations identify priority projects that can subsequently be supported by the CCF. At the same time, the project proposals must comply with the national priorities and investment criteria of the Fund. As a result, the Program will be an important step in preparing the country for the effective use of its funds, which will allow developing and implementing innovative solutions, as well as fulfilling international obligations in the field of climate change.

The official launch of the national project to ensure the readiness of the Republic of Kazakhstan for financing "Readiness-II" took place on March 29, 2023 (The country project "Readiness II" was launched (30.03.2023). URL: https://www.igtipc.org/ru/press-releases/2089-20230330-063219). One of the key aspects of the project is the development of partnerships between national institutions, public organizations and the private sector. The project will strengthen the potential of the country and its national authorized body under the CCF represented by the Ministry of Ecology, Geology and Natural Resources of the Republic of Kazakhstan. The national executive agency ensuring the implementation of the project is the International Center for Green Technologies and Investment Projects.

It should be noted that the project involves the development of a mechanism for assessing existing obstacles to the development of green finance and supporting the financial regulator in developing a concept for a green finance strategy to support Kazakhstan's efforts to create a sustainable financial system consistent with its climate and green development goals. This direction is complemented by the development of the green bond market. In addition, it is planned to develop and strengthen mechanisms for monitoring and evaluating projects funded by the CCF. This will ensure transparency and efficiency in the use of the Fund's funds, as well as allow monitoring the results and achievements in the field of combating climate change.

7. Armenia and the Green Climate Fund

7.1. Armenia's Climate Policy

Armenia is another EAEU state that actively positions itself in the field of solving climate problems. The impact of this small country on the global climate system is minimal. According to statistics, the country's share in global emissions is only 0.014% (Armenia. Climate change, adaptation measures. URL: https://www.ecolur.org/ru/news/climate-change/12189/). However, despite the meager impact on climate change processes in the global context, Armenia is one of the vulnerable countries. The temperature rise in the country exceeds the global average. Thus, in the period from 1929 to 2016, the average annual temperature increased by 1.23 °C compared to 1961-1990. The negative consequences of climate change include land degradation (77.4% of Armenia's territory is at risk of desertification), an increase in the number of forest fires, a decrease in yields, an increase in extreme natural phenomena such as mudslides, strong winds, and droughts. According to the 2015 nationally determined contribution of the Republic of Armenia (INDC), the GHG emission limit for 2015-2050. installed in the amount of 633 million tons. It is also assumed that by 2050 the area of the country's forest cover should increase by 20%. For this, it is necessary to additionally plant about 270 thousand hectares of forest.

In its updated INDC for 2021-2030. Armenia has confirmed its goal to mitigate the effects of climate change. It consists in reducing emissions by 40% compared to 1990 levels. In the second national environmental action program, climate change is considered as a separate problem related to other issues of the country's development. Strategic Program for the Long‐term Development of the Republic of Armenia for 2014-2025 (Armenia Development Strategy for 2014-2025. Annex To RA Government Decree 442 - N On 27th of March, 2014. URL: https://faolex.fao.org/docs/pdf/arm151333.pdf ) provides for the introduction of energy-efficient and resource-saving technologies, as well as reducing emissions of pollutants by transport in Yerevan through the development of public electric transport and other modes of transport with low emissions. GHG emissions are expected to be reduced primarily by expanding renewable energy production, modernizing thermal power plants, improving energy efficiency, developing electric transport, reducing methane emissions from municipal solid waste and wastewater, and restoring forests.

The republic has adopted a long-term Development Strategy with low greenhouse gas emissions (until 2050) (Decision of the Government of the Republic of Armenia "28" December 2023 N 2318 - L "Long-term low greenhouse gas emission development strategy of the Republic of the Armenia (Until 2050)”. URL: https://unfccc.int/sites/default/files/resource/UNDP%20LT_LEDS_ARMENIA.pdf). This strategy confirms the goal of reducing GHG emissions to 2.07 tons per capita. The document is aimed at solving problematic issues and provides for measures to reduce emissions in five sectors, such as energy, industrial processes, agriculture, forestry and other types of land use, waste.

As a measure to support economic development in the format of reducing carbon emissions, it is planned to introduce mandatory accounting for low-carbon activities using international standards of the International Organization for Standardization (ISO). The possibility of introducing tax incentives for entities that actively use low-carbon and carbon-free technologies is outlined. And, most importantly, the Government has confirmed its commitment to developing a Climate–external Debt mechanism. This means attracting additional financial resources for initiatives and projects aimed at combating climate change.

7.2. Climate finance in Armenia

In order to finance activities in the field of climate change, a replenished Investment Fund has been established in Armenia to finance measures to reduce the impact on the climate and adapt to its change. The fund is replenished through environmental charges from companies that use natural resources, as well as from those companies whose activities have an adverse impact on the environment. In addition, Armenia is pursuing a tariff policy to attract investments in the development of renewable energy sources. Preferential tariffs have been established for electricity produced by small hydroelectric power plants, wind turbines, biogas plants, as well as small thermal power plants.

The Renewable Energy and Energy Conservation Fund of Armenia, supported by the World Bank and the Global Environment Facility, implements lending and gratuitous financing programs. The fund's activities greatly contribute to the development of the market for "clean", efficient and affordable heating technologies, including energy efficiency technologies in public buildings. The fund's funds were used to repair central heating systems in schools, as well as to provide loans to small hydroelectric power plants.

Armenia is also characterized by attracting financial resources from foreign sources to co-finance programs in the field of "green" transition. Thus, an additional financing window was opened thanks to the accession to the agreement on the Eastern European Partnership in the field of energy efficiency and ecology (E5P), which is a format of cooperation between Ukraine, Armenia, Azerbaijan, Moldova, Georgia and Belarus (Eastern Europe energy efficiency and environment partnership. URL: https://e5p.eu/). As a result, it became possible to access grants in the amount of 20 million euros. E5P funding is aimed at supporting key local projects in the field of energy efficiency and environmental protection, for example, for the reconstruction of water supply and sewerage systems, solid waste disposal, and thermal insulation of public buildings, etc. It should be noted that the first grant for an energy efficient street lighting project was allocated to Armenia in 2015.

The following international financial institutions allocate the financial resources necessary to create or maintain credit institutions that provide loans to private enterprises and entrepreneurs in Armenia for projects in the field of sustainable energy development: EBRD, the Netherlands Development Finance Company, the International Finance Corporation, the German Development Bank, the World Bank and the Austrian Development Bank. Within the framework of the European Union's program for assistance to the countries of the Eastern Partnership, aimed at carrying out measures in the field of climate impact reduction and adaptation to its changes (ClimaEast), a project on sustainable forest and pasture management was implemented in Armenia.

The cooperation between Armenia and the UNFCCC Adaptation Fund has proved to be quite effective (The cooperation of the Republic of Armenia with the Adaptation Fund is effective: the Minister presented the details of the programs (03.12.2023). URL: https://am.sputniknews.ru/20231203/sotrudnichestvo-ra-s-adaptatsionnym-fondom-effektivno-ministr-predstavil-detali-programm-69539658.html). The cooperation is based on obtaining accreditation in 2016 from the Adaptation Fund in 2016. This has created the conditions for the development of national adaptation and resilience programmes for the most vulnerable communities to climate change. Thus, the Adaptation Fund allocated $2.5 million for the implementation of a project to strengthen terrestrial adaptation in communities adjacent to specially protected areas in Armenia (2019-2021) (Adaptation Fund. Strengthening land based adaptation capacity in communities adjacent to protected areas in Armenia (2019– 2021). URL: https://www.adaptation-fund.org/project/strengthening-land-based-adaptation-capacity-communities-adjacent-protected-areas-armenia-3/) As part of the project, solar irrigation systems, solar dryers and greenhouses were created in the communities of Tavush, Ararat and Lori regions, as well as work was carried out to restore arable land and pastures, and roads were rehabilitated. With the support of the Adaptation Fund in the amount of about $1.4 million, a project was implemented to manage closed quarries and floods in the city of Artik (Adaptation Fund. Artik city closed stonepit wastes and flood management pilot project (2019–2022). URL: https://www.adaptation-fund.org/project/artik-city-closed-stone-pit-waste-flood-management/). In addition, funds were allocated for the landscaping of 40 hectares of abandoned open pits in the city of Artik and the creation of recreation areas in it.

7.3. Armenia and the Green Climate Fund: cooperation in the format of projects and programs

As follows from the above, Armenia has experience in cooperation with foreign financial donors. Moreover, it expands the range of foreign financial partners. Among such promising partners is the CCF, which supports the implementation of projects and programs in Armenia with the participation of UN agencies, the EBRD, the World Bank, the Global Environment Facility and other international financial organizations. The authorized national body of the Foundation is the Ministry of the Environment, and the national coordinator is the Minister of the Environment.

In 2016, Armenia received a $20 million grant to improve the energy efficiency of buildings. The decision was made within the framework of the 13th meeting of the CCF Directorate (GCF. FP010. “De-Risking and Scaling-up Investment in Energy Efficient Building Retrofits” (30.06.2017–30.06.2023). URL: https://www.greenclimate.fund/project/fp010). UNDP acted as an accredited institution. Based on the allocation of grants and loans totaling $14 million, the project was aimed at solving the problem of increasing energy efficiency in Armenia through the modernization of buildings. The implementation of the project contributed to the formation of a market for energy-efficient modernization of buildings in Armenia based on significant energy savings and reduction of GHG emissions to 5.8 million tons of CO2 over the 20-year service life of the equipment. In addition, "green" jobs have been created and the problem of energy poverty has been solved to a certain extent. More than 200,000 people have become beneficiaries of the project and at the same time an impetus has been given to expand private and public sector investments in energy efficiency of buildings. In addition to this, the CCF will provide another $6 million. in the form of technical assistance to eliminate market and political barriers to the modernization of buildings; UNDP provided $1.4 million, and the Ministry of Nature Protection of Armenia provided another $0.4 million. Technical assistance includes the development of measures to overcome the lack of information and awareness about the benefits of building modernization through the establishment of measurement, reporting and verification methods, as well as the development of policy frameworks.

On August 19, 2020, the CCF approved the application submitted by Armenia in 2019 for a grant in the amount of $ 10 million. to facilitate the implementation of the Forest Restoration Program (the Green Climate Fund will provide Armenia with a grant of $10 million for forest restoration (August 21, 2020). URL: https://arka.am/ru/news/society/zelenyy_klimaticheskiy_fond_predostavit_armenii_grant_v_10_mln_na_vosstanovlenie_lesov/). The role of the accredited institution is played by FAO. The total budget of the project is $18.7 million. The Austrian Development Agency, the Government of the Autonomous Province of Bolzano (Italy), the Government of Armenia and the representative office of the World Wildlife Fund in Armenia are participating in the financing of this project. A cross-cutting project aimed at restoring forest lands based on the use of grant funds involves the promotion of the creation of modern nurseries for seedlings and the implementation of programs to promote the development of alternative energy in rural regions. But that's not the main thing. The main thing is that the project is based on the implementation of an approach involving, firstly, increasing the role of communities in the management of natural resources, and, secondly, their management through forest concessions, which will improve the management of the production of fuelwood and non–wood products. From the point of view of the subject of our article, it is important to point out the expected increase in the use of energy-efficient appliances in the private sector, as well as in rural households, in order to reduce the burden on natural ecosystems.

Another equally interesting fact of support from the CCF is a joint cross–sectoral program with the EBRD for financing the "green" economy, previously called the Program for Co-financing Sustainable Energy Financing Mechanisms (GCF. FP025. "GCF-EBRD SEFF co-financing Program" (02.02.2018–02.02.2033). URL: https://www.greenclimate.fund/project/fp025). It involves the provision of credit lines to create self-sufficient markets in the field of energy efficiency, renewable energy and climate change resilience. The program provides for the provision of climate finance to the private sector in 10 countries, such as Georgia, Jordan, Moldova and others, including Armenia, through partner financial institutions (PFI).

It should be recognized that public financing of adaptation and mitigation measures alone is clearly not enough. Therefore, the topic of stimulating the expansion of financing from the private sector, especially in the most vulnerable countries, is becoming very relevant. But in the latter, the private sector does not have sufficient financial resources. For this reason, the Program involves the provision of large–scale climate finance through private foundations in developing countries, which together will finance more than 20,000 projects in various sectors - industrial, commercial, housing, transport and agriculture. Private financial institutions will provide loans to small and medium-sized enterprises, specialized companies and households for the implementation of projects on energy efficiency, renewable energy sources and climate change resilience. For their part, the CCF and the EBRD will provide technical assistance to local private financial institutions and borrowers, which will increase their potential.

In addition to the above, I would like to note that the CCF not only allocates funds for the implementation of climate projects themselves, but also for the development of the institutional environment for climate finance. In 2020, the Foundation allocated a grant in the amount of $660 thousand for the development of a green financing system in Armenia (GCF allocated funds for its first green financing grant program in Armenia (05/22/2020). URL: http://www.eecca-water.net/content/view/21806/51/lang,russian/). Armsvisbank CJSC has been appointed as the responsible organization for the implementation of the project, which is authorized to carry out the activities provided for in the program and monitor the effective distribution of grant funds. The purpose of the grant funds is to attract the best international and local experts and consultants who will analyze the current situation in the field of "green" financing in Armenia and at the same time explore the best international experience, for example, the experience of beneficiary financial structures and implemented projects. The final result will be a draft roadmap, which will outline ways to improve regulation of the sphere of "green" financing in the republic.

Further. Armenia participates in the cross-sectoral program "Assistance to Green Cities" (GCF. FP086 "Green Cities Facility" (09/18/2019–09/18/2034). URL: https://www.greenclimate.fund/project/fp086 ), whose financial instruments are loans and grants. The accredited institution is the EBRD. Armenia has joined a group of nine countries (Georgia, Jordan, Moldova, etc.) that, with the support of the CCF and the EBRD, are making the transition of cities to low-carbon development. However, financial problems arise on the way to sustainability. Therefore, within the framework of the program under consideration, ten cities of the participating countries of the project, in which the carbon emission density is higher than average and which have faced a number of environmental and social problems, will have access to financing. The Fund will assist in addressing urban climate change issues by helping to strengthen market conditions for private sector investment in sustainable infrastructure. The concessional financial instruments provided are aimed at stimulating additional investments in sustainable urban infrastructure, for example, in central heating/cooling, low-carbon buildings, and will also contribute to improving solid waste management.

An important event in the cooperation between the Fund and Armenia was the approval in 2022 of the project application of the Ministry of Environment for the inclusion of the Republic in the implementation of one of the regional programs, to which 14 more countries are participants (the Green Climate Fund (ZKF) approved the project application submitted by the Ministry of Environment of the Republic of Armenia (17.01.2022). URL: http://www.mnp.am/ru/novosti/zelenyj-klimaticheskij-fond-zkf-utverdil-proektnuyu-zayavku-predstavlennuyu-ministerstvom-okruzhayushej-sredy-ra). This program is based on a framework agreement concluded between the German Society for International Cooperation (GIZ) and the Foundation. Opening a window of access to financial resources will allow Armenia to more effectively adapt to climate change and mitigate its consequences. As is the case with all projects and programs supported by the CCF, this participation is fully consistent with Armenia's national priorities in the field of sustainable development.

As well as Kazakhstan, Armenia participates in projects co-financed by the Fund and the EBRD. As we mentioned, this is the FP140 program ($1.01 billion in funding) (Decision of the Government of the Republic of Armenia "13" May 2021 N 749- L "National action program of adaptation to climate change and the list of measures for 2021-2025". URL: https://unfccc.int/sites/default/files/resource/NAP_Armenia.pdf). Its purpose is to assist in the transformation of energy–intensive sectors of the economy, as well as the agro-industrial complex and the mining industry. The peculiarity of the program is that within its framework, the use of low-carbon technologies will receive incentives for development.

As you know, international financial institutions actively support the development of national plans and strategies. Armenia is no exception here. Since adaptation measures for climate change are of significant importance in the republic, the National Adaptation Program (NAP) for 2021-2025 was developed with the support of the CCF. The program was developed within the framework of the project "Preparedness and Preparatory Support" with the financing of the CCF in the amount of about $ 3 million through the UNDP office. The allocated funds have made a significant contribution to the task of developing the NAP concept, a national adaptation framework for key vulnerable sectors, a financial strategy, as well as to solving the tasks of improving climate adaptation and reducing risks in urban and rural communities, gender mainstreaming, capacity building, etc.

At the same time, within the framework of this project, $150,000 was allocated for the development of Armenia's Country Program aimed at achieving readiness to cooperate with the Fund. An important impetus to the development of cooperation between the parties was the ratification by the National Assembly of the Republic of Armenia at a meeting on January 20, 2021 of the basic agreement between the Government of the Republic of Armenia and the CCF, providing for the main directions of their interaction (Russia within the framework of the Green Climate Fund will help the CIS countries (11/21/2012). URL: https://ria.ru/20121121/911644447.html). The result of the ratification of the document will be further strengthening of cooperation with the Fund.

8. Russia as a voluntary donor to the Green Climate Fund

Unlike other EAEU countries, Russia has a specific positioning in relation to the CCF, in the negotiations on the creation of which it took an active part. Russia's status within the UNFCCC does not provide for its financial obligations under the financial mechanism of the Convention. This is due to the fact that the donor countries are listed in Annex No. 2 to the Convention. This included the OECD countries, while the countries with economies in transition, to which Russia was then assigned, entered the Appendix No. 1. Nevertheless, Russia provides assistance in the form of voluntary contributions to the CCF, which is complemented by technical assistance and support for training programs.

Despite the fact that Russia has no financial obligations, in 2020-2022, $10 million from the federal budget was allocated to the Fund in order to assist developing countries in overcoming the consequences of global climate change (Avanesov A. Armenia's cooperation with the Green Climate Fund will receive a new development (01/20/2021). URL: https://arminfo.info/full_news.php?id=60052). This was confirmed by the Agreement between the Ministry of Finance of Russia, the CCF and the IBRD on contributions to the CCF Trust Fund (Contribution Agreement with the Russian Federation (GCF-1) (November 16, 2020). URL: https://www.greenclimate.fund/sites/default/files/document/russian-federation-ca-gcf1.pdf). Russia is making a significant contribution to international efforts to assist developing countries to overcome the effects of global climate change. As a voluntary donor, Russia primarily provides assistance to the CIS countries (Russia, within the framework of the Green Climate Fund, will help the CIS countries (11/21/2012). URL: https://ria.ru/20121121/911644447.html). This is due to the fact that these countries are part of the sphere of Russian influence, as well as participate in integration processes in the post-Soviet space.

Russia can become a full-fledged donor of the CCF only when it enters the Annex No. 2 to the Convention. However, the mechanism for reviewing the composition of these annexes has not yet been developed, although the situation has changed significantly since the adoption of the convention and its annexes: some countries have become members of the OECD, and some countries from the category of developing countries have moved to the category of countries with economies in transition. Therefore, Russia has submitted a draft amendment to the convention providing for the possibility of periodic revision of the annexes.

Under the sanctions, Russia's financial situation has deteriorated. But despite this, within the framework of COP 28, an idea was put forward to use its frozen foreign exchange reserves to finance the UN Fund to Assist Countries Most Vulnerable and Affected by the Effects of Climate Change (Loss and Damage Fund) at the expense of frozen foreign exchange reserves (Russia tries to unfreeze gold reserves for climate funds at COP28 (December 9, 2023). URL: https://www.reuters.com/sustainability/sustainable-finance-reporting/russia-tries-unfreeze-gold-reserves-climate-funds-cop28-2023-12-09/). The creation of the Fund was agreed on November 30, 2023. However, it seems that it will be difficult to implement this solution in practice.

Russia's positioning as a voluntary donor is a continuation of the logic of support that Russia provides to developing countries to the best of its ability, for example, in the form of debt cancellation within the framework of the Debt for Development initiative. In addition, Russia voluntarily contributes to the financing of global climate initiatives and institutions, including the Intergovernmental Panel on Climate Change. Assistance is also provided in the field of climatological research and development. However, under the conditions of sanctions, its participation in international scientific and technical cooperation in the field of climate is largely limited.

9. Belarus and the Green Climate Fund: a failed partnership

The climate policy of Belarus implements an agenda aimed at mitigating the effects of climate change and adaptation to them. At the beginning of 2024, the country has reduced CO2 emissions by 40% compared to 1990 levels. This has become possible due to measures aimed at:

· Improving energy efficiency in industry, housing and utilities sectors;

· Accelerated development of "green" transport and urban mobility;

· application of new "green" technologies in agriculture;

· use of renewable energy sources;

· restoration of peatlands and increase in forest area.

Without stopping there, Belarus intends to move to a new phase of climate policy in 2025. It is planned to review national strategies and programs to include climate change issues in them, as well as the development of new action plans. The climate policy of Belarus is implemented in close cooperation with the UN structures.

If we touch upon the issue of Belarus' cooperation with the Fund, then in 2015 there was an attempt to get a window of access to the Fund's financial resources by submitting an application (Towards the future: intensification of climate action (05/23/2024). URL: https://www.undp.org/ru/belarus/news/navstrechu-buduschemu-aktivizaciya-deystviy-v-oblasti-klimata). The proposed project should be aimed at verifying Belarus' international legal obligations under the Minamata Convention on Mercury. The essence of the planned project was to financially support the process of obtaining statistical data on the number of mercury-containing lamps used in the country. Indeed, such statistics are necessary in order to implement the implementation of international legal obligations under the Minamata Convention, which mean the withdrawal of this category of lighting devices from circulation while using new production technologies, including in lighting technology. It follows from open sources that the application was not supported. In general, on the CCF website, Belarus, as well as Russia, is not mentioned among the states in which country projects are being implemented. This is quite understandable, because the Fund gives priority to working with developing countries. To date, the absence of projects and programs implemented by the CCF in the co-financing mode in Belarus is compensated by cooperation with the Global Environment Facility.

Conclusion

In the course of the study, it was found that there is no uniform positioning of the EAEU member states in relation to the CCF. Three countries of the Union – Kyrgyzstan, Kazakhstan and Armenia - are involved in the implementation of projects co-financed by the Fund. Their cooperation with the Fund creates a favorable environment for expanding sources of foreign climate finance, which is simultaneously associated with the development of national financial institutions and the mobilization of private capital in these countries. At the same time, Russia appears as a voluntary donor, whereas Belarus, due to its status, is outside of interaction with the Fund. For this reason, cooperation with the Foundation is not included in the list of formally defined areas of activity of the Union. At the same time, there is no common understanding of the need to coordinate the interaction of Member States with the Fund and develop a common position. However, this in no way depends on the fact that Armenia and Kyrgyzstan intend to switch to a carbon-neutral economy by 2050, whereas Russia and Kazakhstan only by 2060. Unfortunately, Belarus has not yet formulated a timeline for achieving carbon neutrality. However, it strives to keep up with the deadlines for achieving carbon neutrality, stated in the promises of the leading countries of the world. This country is also characterized by a desire to attract additional external sources of financing.

It should be noted that the resources allocated by the Fund for the implementation of "green" and climate projects are insignificant. However, they are in synergy with financial support from other international financial institutions. The use of external financial resources leads to important results. As it seems, the further development of cooperation with the Fund of both the member states and the Union as a whole consists in integration into the international system of "green" and climate finance.

Of course, the Union, as an integration association that has declared its climate agenda and included the issue of "green"/climate finance in it, albeit in the most general form, should follow the path of developing an integration system of climate finance, subsidiary to national climate finance systems. In addition to using the resources of the Eurasian Development Bank, we can talk about the formation of a Eurasian Climate Fund in the future. However, it should be understood that such promising processes involve continued cooperation with international financial institutions with project experience in financing climate projects. Therefore, it is quite rational to form cooperation between the Eurasian Economic Commission and the CCF up to the conclusion of a Memorandum of Cooperation. As can be seen from the experience of the Union countries, the Fund is open to cooperation. The purpose of such interaction may be to work out the issue of attracting the Fund's funds to finance integration climate projects. In the EAEU, as is known, the discourse of integration "green" projects has already developed and a high degree of consolidation of positions has been achieved. This is a condition for the allocation of a subgroup of joint climate projects. The Fund also has experience in financing projects implemented by several countries.

In the case of the EAEU, these may be joint projects involving three countries – Armenia, Kazakhstan and Kyrgyzstan. Possible projects are based on a common interest in solving climate problems. Projects for the development of alternative energy, the development of "green" transport, etc., which correspond to the climatic and "green" priorities of the Union as a whole and its member states in particular, can become the most promising for joining efforts. If such projects are developed and approved, which is impossible without the active participation of the Eurasian Economic Commission, Russia may become one of the donors, and Belarus will have the opportunity to intensify cooperation with the Fund on a common platform. The opening of a window of access to the Fund's resources in order to finance joint "green" and climate projects will indicate, firstly, that the Union has moved to the stage of implementing projects that are symbols of Eurasian integration, and, secondly, that the climate agenda has already passed the stage of its formation and is at the stage of implementations.

It seems that the barrier to the implementation of such a scenario is that the climate policy of the EAEU as a whole and the issues of climate finance in its composition are at the stage of formation. There is a noticeable lag in comparison with the achieved degree of maturity of the "green" agenda of the Union. However, the issues of "green" financing have not yet moved to the level of integration cooperation. But, on the other hand, the EAEU member states have entered the phase of forming a mature climate policy. In Armenia, Kazakhstan and Kyrgyzstan, this is happening with the support of the CCF. In fact, the initiation of interaction with the Fund can be initiated not after the completion of the formation of the Union's climate agenda, but in parallel with this process. This conclusion can be argued as follows.

As could be seen from the analysis of the cooperation of Member States with the CCF, in the vast majority of cases, projects and programs with its participation in the form of co–financing involve stimulating the use of technological solutions that contribute to adaptation to climate change and mitigation of their consequences. Co-financed programs and projects reflect all available categories of programs and projects supported by the Fund. The EAEU countries are no exception here. Supported programs and projects show which technological solutions are needed. Consequently, their list fills with deep content the thesis contained in the 2021 Statement on Economic Cooperation of the member States of the Eurasian Economic Union within the framework of the climate agenda, on the importance of broad international exchange and non–discriminatory use of technologies that ensure emission reduction and low-carbon development. Therefore, there is a need to develop and implement this category of technologies together, especially since the Fund encourages their development and use.

As a matter of fact, all technologies that can be called climatic, in fact, are mentioned in various documents of the Union. In this context, the noted provision of the Statement of the Heads of State should be extrapolated to measures to strengthen cooperation in the climate technology sector through monitoring and assessment of technological needs, as well as the development of measures to coordinate cooperation between the EAEU states with the Fund in terms of sharing experience of interaction with it and planned requests for proposals.