ASTANA – The adoption of green technologies, development of sustainable agriculture, and use of alternative energy sources will help Kazakhstan not only adapt to climate challenges but also become a regional leader in sustainable development, according to a report by the National Bureau of Economic Research (NBER).
The report, “Temperature Effects and Economic Growth: An Empirical Analysis of Global Warming,” examines the impact of temperature changes on the global economy and highlights the long-term consequences for various countries.
“Temperature fluctuations may lead to prolonged economic consequences, especially in countries with hot climates. In these regions, a one-degree Celsius rise in average temperature could reduce GDP by 1% or more,” the report states.
The main drivers of this include higher production costs, reduced labor productivity and changes to agricultural conditions. However, in colder countries, some temperature shifts could boost economic growth by improving production conditions and lowering energy costs during the winter months.
For Kazakhstan, with its mix of temperate and semi-desert zones, temperature changes could have diverse and significant impacts on agriculture, mining and infrastructure. The country faces challenges like droughts and water shortages, and further warming could exacerbate these issues, threatening both the economy and food security.
Economic impact of global warming on Kazakhstan
Kazakhstan, with its varied climate, is especially vulnerable to extreme weather events, which are becoming more intense due to climate change.
The sectors most at risk, according to the NBER report, include agriculture, mining, energy, infrastructure and water resources.
Rising temperatures could reduce rainfall in the country’s central and southern parts, decreasing agricultural productivity. Increased irrigation and equipment costs could also hurt the sector’s profitability. Given the importance of agriculture to Kazakhstan, these changes necessitate the adoption of new technologies to maintain crop yields and protect against drought.
In the mining and energy sectors, higher temperatures may require additional cooling measures for equipment, driving up operational costs. Elevated temperatures also present risks to workers and infrastructure, leading to higher energy expenses, particularly in southern and central Kazakhstan, where summer heat is a pressing issue.
The report also stresses that climate change could worsen water access issues. Rivers and lakes that supply the country could become less reliable due to droughts and reduced snowmelt, threatening hydroelectric stations and water supply systems, which could impact the cost and availability of water.
The NBER report notes that the effects of temperature shocks could last for decades. In high-temperature countries like Kazakhstan, the impact of climate change may show up as reduced labor productivity, population migration, and increased costs to maintain infrastructure. To mitigate these long-term effects, Kazakhstan will need to adapt its key sectors by enhancing economic resilience and diversifying sectors most vulnerable to climate risks.
Recommendations for Kazakhstan
The report also highlights that the country’s economy, heavily reliant on natural resources, is especially exposed to climate fluctuations. Increasing investments in green energy and innovative technologies will help reduce the effects of temperature shocks and support the development of new, less climate-sensitive sectors.
Key measures identified in the report include adopting new technologies, strategic infrastructure planning and active government involvement in addressing climate change impacts. Kazakhstan could look to examples set by countries like the Netherlands and Israel, which have made significant strides in water resource management and sustainable agriculture.
Potential actions for Kazakhstan include introducing sustainable agricultural technologies. Precision farming and advanced irrigation can help conserve water and boost productivity. Training programs for farmers and subsidies for innovative technologies will further support the agricultural sector’s adaptation to climate challenges.
Developing renewable energy is also crucial. Investments in solar and wind power can reduce reliance on traditional energy sources and lower the country’s carbon footprint. Kazakhstan has significant potential for green energy development, and government-supported renewable energy programs could serve as a foundation for sustainable growth.
Improving water efficiency is another priority. Building new water treatment facilities and employing modern resource management methods will curb water loss and optimize its distribution in arid regions. These efforts will help ensure long-term water access for agriculture and industry.
The economic impact of global warming on Kazakhstan underscores the need for a proactive and comprehensive strategy focused on adaptation and resilience.
Recently, the Ambassador of the United Kingdom to Kazakhstan, Kathy Leach, highlighted the role of climate initiatives in strengthening the U.K.-Kazakhstan relations and expressed the U.K.’s ongoing support in addressing the consequences of climate change.
The article was originally published on the economy.kz website.