Kazakhstan explores blue finance to mobilize investment for sustainable water management

September 8, 2026

Diverse group of professionals in front of United Nations emblem and flags. — Photo: UNDP Kazakhstan/ Madina Kakimzhanova

Kazakhstan is exploring new financing approaches to support the modernization of its water sector as growing pressure on water resources increases the need for investment in resilient infrastructure, water efficiency and sustainable water management.

Kazakhstan could face a water deficit of 12–15 billion cubic metres by 2040, while an estimated US$1–1.5 billion in investment is needed annually in the water sector. With public resources alone unable to meet these needs, mobilizing additional private capital will be critical to financing the country’s water priorities.

Against this backdrop, the Partnership for Action on Green Economy (PAGE) convened a stakeholder consultation in Astana to discuss how blue finance can help channel investment towards sustainable water management while supporting jobs, skills, businesses and local communities.

The consultation brought together representatives of the Ministry of Water Resources and Irrigation, Kazvodkhoz, water utilities and technology providers, businesses, universities, civil society organizations, international development institutions and UN agencies.

Discussions focused on investment and modernization priorities across Kazakhstan’s water sector, including irrigation, wastewater treatment, water efficiency and digitalization. Participants also considered the conditions needed to turn these priorities into viable projects capable of attracting public and private finance. These areas are among the potential directions identified for the development of blue finance in Kazakhstan.

Through PAGE, five UN agencies are bringing together complementary expertise to support the development of blue finance in Kazakhstan.

UNDP is assessing financing needs, market conditions and potential projects; UNIDO is examining blue industries, technologies and value chains; ILO is analysing employment, skills, decent work and social dimensions; UNEP is supporting work on blue finance instruments, including Blue Bond Guidelines and eligibility criteria; and UNITAR will contribute through capacity building.

Together, this work is intended to help establish a clear framework for determining which investments can qualify as “blue”, identify a pipeline of investable projects and create the conditions for a pilot blue bond issuance in Kazakhstan. The PAGE programme includes the assessment of blue finance potential, development of a blue finance taxonomy and guidelines for blue bond issuance, capacity building and piloting of blue bonds.

Blue bonds are sustainable debt instruments that can direct financing towards projects related to the protection and sustainable management of water resources and water-related ecosystems, with measurable environmental and social benefits. Potential areas for Kazakhstan range from irrigation and wastewater infrastructure to digital water-management systems, pollution prevention and ecosystem restoration.

Man in a dark suit speaks at a conference table with microphones, papers, and water bottles.

Group of people around a conference table watching a projected presentation on a screen.

Man with glasses in a brown jacket speaks at a formal meeting, others listen at a table.

Group of officials at a long conference table in a UN meeting room with blue UN flag backdrop.

Photograph of two women seated at a conference table, one holding papers, orange chairs visible.

Three women at a conference table with notebooks and water bottles, smiling.

Photograph of a diverse group seated in a circle, discussing in a classroom; Kazakh flag in corner.

Two women in a blue-walled studio sit and talk, each holding papers.

Three professionals in meeting room; woman writes, man raises hand, another notes, posters behind.

Two women sit at a conference table with notebooks and water bottles, listening.

Photo: UNDP Kazakhstan/ Saltanat Boteu

A central part of the consultation focused on the social and labour implications of water-sector modernization. New infrastructure, digital technologies and more efficient water-management systems can change the skills and occupations required by the sector, affect working conditions and create opportunities for small and medium-sized enterprises, women and young people. Participants discussed how these considerations can be incorporated into investment planning and the emerging blue finance framework.

The discussion also highlighted the importance of preparing projects before bringing them to financiers, strengthening the capacity of local businesses to participate in water-sector transformation, and considering how reforms are perceived by farmers and local communities.

The perspectives gathered during the consultation will inform PAGE’s ongoing analysis and the development of Kazakhstan’s blue finance framework. The next steps include identifying potential projects and issuers, integrating recommendations from participating UN agencies, developing a blue taxonomy and preparing for a pilot issuance of blue bonds.

By connecting water-sector priorities with appropriate financing instruments and their social and economic dimensions, this work aims to help Kazakhstan translate its water investment needs into projects capable of attracting capital and contributing to a more resilient economy.

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