ASTANA – Experts warn that declining global interest in climate initiatives could hinder investments in Kazakhstan’s green economy after U.S. President Donald Trump declared a state of emergency in the energy sector and announced the country’s withdrawal from the Paris Agreement.
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Trump has also proposed ending support for large wind farms, which he claims “ruin natural landscapes and do not serve consumer interests.” His administration is considering cuts to subsidies for electric vehicles and reductions in renewable energy investments.
Zhakyp Hairushev, director of the Department of Energy and Housing and Utilities at the Atameken National Chamber of Entrepreneurs, said that the U.S. departure from the Paris Agreement could weaken global efforts to combat climate change and cost the country its leadership in green technology.
He also noted that such a shift could significantly slow renewable energy development. However, Trump’s supporters argue these measures will lower energy costs for Americans and strengthen traditional industries such as coal, oil, and gas.
“Despite the policy changes, the United States remains a major player in renewable energy. California alone generates more than 11,000 megawatts (MW) of solar power and over 6,000 MW of wind power. The country’s Renewable Portfolio Standard requires renewables to make up 60% of energy by 2030 and for 100% of retail electricity to be emission-free by 2045,” he explained.
Hairushev cautioned that a full U.S. withdrawal from green policies could undermine international efforts to transition to a sustainable economy. He emphasized that energy policy must balance economic interests, environmental commitments and political will.
Global economic risks
Experts acknowledge that abandoning green energy policies may provide short-term economic benefits for the United States. Cutting climate program spending could support traditional industries, create jobs and lower energy costs. Easing environmental regulations could also reduce production costs, boosting U.S. companies’ competitiveness in global markets.
Hairushev warned of long-term consequences.
“Renewable energy, including solar, wind and hydrogen, has become a key driver of global economic growth. If the United States steps aside, it will limit its technological leadership and reduce its export potential. The absence of active climate policies could also worsen natural disasters like hurricanes, droughts and floods, leading to massive economic losses,” he added.
Pulling away from climate initiatives could weaken U.S. global leadership and strain relations with key partners, particularly the European Union and China.
Askar Ismailov, an energy industry expert, predicted that rolling back green policies would temporarily drive up valuations for oil companies.
“Investors will shift funds from renewables back into oil. However, this will last only during Trump’s presidency. No one knows how the 2028 election will play out. If Democrats win, green energy will return to the agenda, so these changes may be short-lived,” shared Ismailov.
Ora Lazic, a leading commodities markets consultant at Kpler SAS in London, said the global transition to green energy is inevitable.
“Even at the World Economic Forum in Davos, there were extensive discussions on green energy. Many U.S. states have already made significant investments in renewables. About five oil refineries have shut down due to declining demand, and in California, high fines for oil companies have led many to abandon gasoline cars. Trump may slow progress, but he cannot undo everything,” she said.
Lazic also noted that Texas alone produces more than a quarter of the world’s wind energy.
Challenges for Kazakhstan
Hairushev highlighted that the U.S. withdrawal from green energy initiatives will have significant effects for both the global market and Kazakhstan.
“For Kazakhstan, this presents both opportunities and challenges. Higher demand for traditional energy sources like oil, gas and coal could boost export revenues. However, declining global interest in climate initiatives may make it harder to attract investments in Kazakhstan’s green economy,” he explained.
“This shift could threaten the development of key renewable energy projects, potentially pushing Kazakhstan to strengthen ties with European and Chinese partners who remain committed to environmental policies,” added Hairushev.
In his view, while the U.S. shift could temporarily strengthen Kazakhstan’s position in hydrocarbon exports, the country must continue developing low-carbon technologies to stay competitive in the evolving global energy landscape.
The article was originally published in Kazinform.
