Investing in life: How BIOFIN helps Kazakhstan finance nature

The world is changing rapidly, and our climate and ecosystems are under growing pressure. Nature is losing its balance as species disappear, land degrades, and water and air become polluted. These are not just environmental issues — they are serious economic risks that threaten food, water, and climate security.

With biodiversity declining at alarming rates, governments, businesses, and communities can no longer stand aside. To keep nature sustaining life, we must not only protect it but also finance it wisely as a vital resource.

Nature is the foundation of our well-being — it provides food, water, clean air, and climate stability. Yet its value is often invisible in financial decisions, where conservation is viewed as a cost rather than an investment in our future.

To address this challenge, the UNDP launched the Global Biodiversity Finance Initiative  (BIOFIN). BIOFIN helps identify gaps in biodiversity financing and develop solutions to integrate nature into the economy - not as a cost, but as a driver of sustainable development.

BIOFIN in Kazakhstan

The issue of biodiversity loss is particularly pressing in Kazakhstan. The country faces significant environmental challenges: around 75 percent of agricultural land is affected by land degradation processes such as desertification, salinization, and soil erosion, while access to freshwater has declined by nearly a quarter over the past 40 years.

Currently, the Red Book of Kazakhstan records approximately 400 plant species and 227 animal species, including 132 vertebrates and 96 invertebrates. Protected areas cover 30.9 million hectares in 2025 - an important achievement, but insufficient without sustainable biodiversity financing.

 Kazakhstan joined BIOFIN in 2013, becoming one of the first countries in Central Asia to begin a systematic analysis of biodiversity financing.

Since then, two key studies have been carried out:

• Policy and Institutional Review (PIR): an analysis of government strategies, laws, and mechanisms, as well as the roles of stakeholders that influence biodiversity.
• Biodiversity Expenditure Review (BER): an assessment of how public, private, and donor funds are allocated to the conservation of biodiversity and ecosystems.

According to the BIOFIN expenditure analysis for 2015-2022, Kazakhstan invested 1.267 trillion tenge (approximately US$2.75 billion) in the conservation and restoration of biodiversity. This amount represented 1.25 percent of GDP (Gross Domestic Product) and 5.34 percent of the national budget in 2022. The funds were allocated across wildlife protection, management of protected areas, water resources, forestry, and fisheries.

Most of the biodiversity financing — 74.75 percent, comes from the national budget. International organizations contribute 13.55 percent; non-governmental organizations account for 8.66 percent and only 3.03 percent - from the private sector.

Although funding has grown nearly 27-fold in absolute terms - from 29.5 billion tenge in 2008 to 801 billion tenge in 2022 - the share of spending on nature relative to GDP has declined from 0.9 percent to 0.78 percent. At the local level, biodiversity-related expenditures amounted to 408.6 billion tenge between 2015 and 2022, representing only 0.81 percent of total local budgets, despite regional budgets nearly tripling over the same period.

These data allowed Kazakhstan, for the first time, to see how financial resources are allocated and identify where nature remains in the “budgetary shadow.” This demonstrates that while funding for nature is increasing, it is still lagging economic challenges and climate risks.

When biodiversity is excluded from the budget, a country risks losing not only its natural heritage, but also valuable economic opportunities.

BIOFIN estimates that annual revenues linked to biodiversity and natural capital reach around 955 billion tenge. These revenues primarily come from agriculture, forestry, fisheries, and nature-based tourism, highlighting the significant economic value of natural resources of Kazakhstan. However, these financial flows are not yet systematically tracked, meaning there is no unified system to monitor how and where these resources are allocated.

A transparent system for monitoring budget flows would allow decision-makers to act more effectively, using real data to guide investments in nature and strengthen climate resilience.

When nature is not built into economic decisions, the country risks losing more than ecosystems. 

 BIOFIN proposes several concrete solutions:

• Integrate biodiversity into national strategic and budgetary frameworks.
• Formally adopt the National Biodiversity Strategy and Action Plan (NBSAP) as a legally binding document linked to budget planning and aligned with the Kunming–Montreal Global Biodiversity Framework.
• Develop and implement digital tools for monitoring, assessing, and compensating for ecosystem impacts.

When nature becomes part of economic decision-making, a country gains in food, climate, and social resilience.

Private Sector and Nature

Kazakhstan is rich in natural resources, with its industrial sector, particularly oil and gas, mining, and construction - forming a major part of the national economy.

However, these same industries exert the greatest pressure on ecosystems and biodiversity, while private sector engagement in conservation remains limited.

Many infrastructure and industrial projects are implemented in environmentally sensitive areas without sufficient consideration of ecological risks. Over time, this creates serious threats to water, soil, and climate resources, causing lasting harm to wildlife and natural habitats.

According to BIOFIN, between 2015 and 2022, the private sector accounted for only 3 percent of total investments in nature conservation, distributed as follows:

• 82.5 percent went to landscaping and urban greening, which has little impact on wildlife protection.
• 11.1 percent supported non-governmental organizations working on biodiversity issues.
• 5.6 percent went to land restoration and reclamation.
• 0.8 percent funded fish stocking in water bodies.

This gap exists because the private sector is not yet fully engaged in addressing biodiversity challenges, and environmental initiatives are rarely integrated into corporate strategies. If private sector involvement were aligned with national priorities -such as the Biodiversity Conservation and Sustainable Use Concept to 2035 and the Sustainable Development Goals (SDGs) corporate investments could deliver tangible benefits for both people and nature.

Moreover, the current mechanism, under which all environmental fines are credited to the general state budget, can produce unintended consequences. An increase in environmental violations generates higher revenues, while a decrease reduces budget income, yet these funds are not directly invested in conservation measures. 

Another challenge is the lack of incentives and transparent mechanisms for private sector engagement. In 2024, BIOFIN assessed readiness for natural capital disclosure by consulting over 90 stakeholders from financial institutions and companies. The assessment revealed growing interest in reporting environmental data, but practical tools, standards, and incentives for integrating eco-reporting into corporate practice are still lacking.

Transitioning to sustainable financing requires transparent mechanisms and economic incentives for businesses, such as tax benefits, green bonds, and payments for ecosystem services (PES).

The environmental damage caused by extraction and production far outweighs the actual costs of ecosystem restoration and biodiversity conservation.

International cooperation also plays a crucial role in biodiversity conservation. Of the 22 organizations involved in the biodiversity expenditure review, nine international organizations and NGOs submitted their data.

Between 2015 and 2022, UNDP in Kazakhstan implemented ten biodiversity projects totaling US$16.2 million, demonstrating how partnerships and donor support help advance national initiatives and introduce modern approaches to nature conservation.

BIOFIN as a Navigator for Reforms

BIOFIN is supporting Kazakhstan build a new model in which nature is not just an external environment, but a key asset on which the economy directly depends. BIOFIN is helping to build a model where biodiversity conservation is not seen as a cost, but as an investment in the future.

By bringing together insights from three key studies: the Political and Institutional Review, the Biodiversity Expenditure Review, and the Natural Capital Disclosure Readiness Assessment - BIOFIN has charted a roadmap for reforms that will transform how Kazakhstan values and manages nature. These reforms span legal, budgetary, institutional, and market dimensions, setting the stage for a future where nature is recognized as a core economic asset.

1. Adopt the National Biodiversity Strategy and Action Plan (NBSAP).

Kazakhstan is taking steps to ensure that biodiversity is no longer an afterthought. A legally binding National Biodiversity Strategy and Action Plan will connect nature conservation goals with budget planning and the country’s broader development programs.

2. Embed the concept of natural capital in national legislation.

Clear definitions are key to making decisions about nature that are both effective and transparent. Terms like “natural capital,” “nature-positive outcomes,” and “disclosure” will be embedded across Environmental, Forest, Land, Water, and Business Codes. Meanwhile, the concept of “biodiversity” will be updated to reflect Kazakhstan’s socio-economic realities, giving it a concrete legal foundation in the Environmental Code.

3. Integrate biodiversity into strategic development documents.

Biodiversity goals will be fully integrated into the Kazakhstan-2050 Strategy, the Environmental and Budget Codes, the updated Green Economy Concept, and other national programs. Importantly, this integration will cascade from high-level strategies to sectoral plans, regional programs, and local projects, ensuring a coherent approach from top to bottom.

4. Engage the private sector.

Sustainable development requires active participation from businesses. Tax and investment incentives, payments for ecosystem services (PES), and support for green and ESG-oriented products will encourage companies to align with nature-positive practices. At the same time, corporate disclosure of natural capital impacts will follow international sustainability standards like TNFD, ISSB, and GRI, making business decisions more transparent and effective.

5. Establish a National Knowledge Center on Natural Capital.

The proposed National Knowledge Center on Natural Capital will serve as a hub for sharing expertise, training, and supporting government agencies in assessing, accounting for, and disclosing natural capital. It will also help integrate biodiversity loss compensation and restoration tools into sectoral laws, ensuring that environmental protection is practical, measurable, and aligned with Kazakhstan’s legal framework.

BIOFIN provides Kazakhstan with a systemic framework for tracking and mobilizing biodiversity finance, serving as a guide for both budget and policy.

 Nature as an Investment in the Future

Kazakhstan is home to unique natural capital — from mountain ecosystems to forests, steppes, and semi-deserts. Yet despite significant progress, nature remains in the “budgetary shadow.” According to BIOFIN projections, by 2028 the country’s biodiversity financing needs could reach 2.4 trillion tenge. Mobilizing these resources will only be possible through coordinated action by the government, private sector, international partners, and society.

When nature becomes visible to the economy, it transforms into an asset for sustainable development, food and climate security, and the well-being of future generations.

Investing in nature is investing in life.