This report presents the main findings and conclusions from the project on “Promoting Green Growth and Low-Carbon Development: Analysis and Support to Policy Dialogue on Key Governance Elements of the Green Economy Concept in Kazakhstan”, implemented within the framework of the OECD-Kazakhstan Co-operation Programme and the GREEN Action Task Force, for which the OECD provides a secretariat.

The vehicle transport sector is responsible for 88% of greenhouse gas (GHG) emissions in the transport sector and contributes to the already high carbon intensity of the Kazakh economy. Most of the transport vehicles in Kazakhstan are more than ten years old. Cars and buses run mostly on diesel (about 80% of the fuel used) while diesel engines hardly correspond to the Euro IV standard compared to Euro VI used in Europe. These structural and technical features make vehicle transport an important contributor to the very high level of air pollution in many cities in Kazakhstan.

This chapter lays out the rationale for and the main elements of the Clean public transport investment programme. The feasibility of such a programme and the main challenges to its implementation are also discussed.

This chapter provides estimates of the costs of the programme and the expected environmental and social benefits. These estimates are derived from programme objectives and possible pipelines which are discussed in detail here. The chapter also lays out the financing strategy and optimal co-financing level. The programme is designed to be implemented in two phases: i) Phase 1, a pilot phase that includes two selected cities (Kostanay and Shymkent); and ii) Phase 2, an extension of the programme to cover most major urban centres in Kazakhstan.

This chapter briefly describes the main demographic, macro-economic and environmental issues in Kazakhstan with respect to the transport sector. It also presents an overview of the urban public transport system in the country as well as the level of greenhouse gas emissions and air pollution in the main urban centres. Finally, the major health risks associated with the main air pollutants are analysed. This discussion forms part of the justification for the need for public support for investments in the transport sector.

This chapter briefly discusses the regulatory framework for urban public transport including technical, emissions and energy-efficiency requirements – both of the Eurasian Customs Union and the Republic of Kazakhstan – that urban public transport vehicles need to meet. The chapter also looks at some public finance aspects related to urban public transport in Kazakhstan. All these issues are discussed in the context of the extent to which existing policies and regulations create demand for green investments in the public transport sector.

This chapter analyses the market for clean technologies and fuels in the bus transport sector in Kazakhstan and on this basis assesses the viability of the investment programme.

This chapter discusses issues related to the institutional arrangements that can be set up to manage the clean Public Transport Investment Programme. It suggests a three-level institutional structure which comprises: i) a programming entity, ii) an implementation unit and iii) a technical support unit. The chapter also suggests a possible division of responsibilities across these three entities, and describes the minimum operating regulations required to adequately manage the programme.

This chapter presents an overview of the project cycle management (PCM) procedures, developed for each project pipeline identified as part of this programme. Essentially, the PCM procedures are the responsibility of the implementation unit. A well-designed PCM procedure ensures that similar projects compete for public support and that the most cost-effective ones should be selected for financing and implementation.