The U.S. decision to abandon climate initiatives may complicate Kazakhstan’s efforts to attract investments into its “green economy,” according to Zhakyp Khayrushev, Director of the Energy and Housing and Utilities Department of the “Atameken” National Chamber of Entrepreneurs.

The Shift in U.S. Climate Policy

U.S. President Donald Trump declared a state of emergency in the energy sector and announced the withdrawal from the Paris Agreement. His policies are reversing the initiatives of former President Joe Biden, which focused on protecting the Arctic from oil drilling, promoting electric vehicles, and supporting renewable energy. Trump claims that these initiatives increased costs for American consumers and harmed the economy.

Among the major policy shifts proposed by Trump are:

• Ending subsidies for electric vehicles.
• Reducing investments in renewable energy.
• Stopping the construction of large wind farms, which he argues “ruin landscapes” and do not serve consumer interests.

Experts warn that these changes could weaken global efforts to combat climate change and diminish U.S. leadership in developing innovative clean energy technologies.

Economic Impacts and Global Risks

While supporters of Trump’s policy argue that these measures will lower energy costs for Americans and boost the coal, oil, and gas industries, energy experts such as Zhakyp Khayrushev believe the long-term risks outweigh the short-term gains.

• Impact on Global Energy Markets: Renewable energy, including solar, wind, and hydrogen, is becoming a key driver of global economic growth. If the U.S. withdraws from climate initiatives, it may lose its technological leadership and limit its export potential.
• Environmental Consequences: A lack of commitment to green policies could worsen natural disasters such as hurricanes, droughts, and floods, leading to massive economic losses in the future.
• Geopolitical Shifts: The withdrawal from climate commitments could weaken U.S. international influence, especially with key partners such as the European Union and China, who remain committed to green policies.

Implications for Kazakhstan

Kazakhstan, as an energy-exporting country, will feel the effects of these changes. According to Zhakyp Khayrushev, there are both opportunities and challenges for Kazakhstan in this new global scenario:

• The rising demand for fossil fuels (oil, gas, coal) may increase Kazakhstan’s export revenues.
• However, the decline in global climate initiatives might limit Kazakhstan’s ability to attract investments into its green economy.
• The country may need to shift focus towards European and Chinese investors, who continue to prioritize environmental sustainability.

For long-term competitiveness, Kazakhstan must continue investing in low-carbon technologies, despite global political shifts.