Clean energy challenges and innovation opportunities in Kazakhstan

Kazakhstan has pledged to transition to a low-carbon economy by implementing national policies and strategies that promote clean energy innovation. However, Kazakhstan is still falling short of its expected targets for energy transition, and there is a lack of knowledge regarding the country's challenges and opportunities for clean energy development. Towards this end, the current study identifies and assesses the enablers and barriers related to clean energy innovation in Kazakhstan. Using the combination ofSWOTanalysis, survey data from 41 experts and the DEMATELdecision support tool, we evaluated the key factors affecting Kazakhstan's clean energy innovation and their implications for energy transition. Assessment results show that the immature business environment, underpinned by technological, institutional, and socioeconomic factors, is perceived as a high-impact constraint for clean energy innovation and green finance deployment in Kazakhstan. Skilled labour shortages, high reliance on hydrocarbons and low retail energy prices are significant challenges to Kazakhstan's clean energy innovation. The low-profit margin and high investment risk in clean energy projects are identified as transition barriers in the power and energy-intensive industries. In contrast, Kazakhstan's endowments of resources critical for developing clean energy technologies (rare earth metals, uranium, gas) and the potential of low-carbon investments (e.g. carbon storage) are perceived as prominent enablers of clean energy innovation. Results are consistent across expert subgroups (academia, industry, NGOs, etc). Findings call for policy support to modern and attractive business environments, capacity, and human capital development. The findings can provide helpful insights for countries in Central Asia and beyond with similar socioeconomic structures that aim for a timely energy transition.