An investment-budget approach to stimulating green financing

Abstract

The scientific article explores the investment-budgetary approach as a key mechanism for stimulating green financing in Kazakhstan amid global climate change and the growing demand for sustainable development. It examines the theoretical foundations of how public investments and budget classifications influence the attraction of private capital to green projects, drawing on crowding-in signal theory and public-private partnership concepts. The study analyzes the current state and effectiveness of existing green-finance programs in Kazakhstan, identifying the main constraints and barriers to their development. Based on international best practices from leading countries in green finance, the authors propose recommendations for adapting successful measures to Kazakhstan. Particular attention is given to the role of government guarantees and budget co-financing as tools for catalyzing green investment. The conclusion outlines the advantages and potential risks of the investment-budgetary approach and considers scenarios for the development of green financing in Kazakhstan through 2030. The article is relevant to specialists in green economics, researchers, government agencies, the financial and investment sectors, international organizations, and businesses.