This document discusses the need for green innovation to transition to a low carbon future and green economy. It argues that innovation must be supported by policies like carbon pricing in addition to technology and funding. The Paris Climate Agreement opened opportunities for low carbon innovation and green energy to drive future competitiveness. While Kazakhstan currently relies on high carbon competitiveness, it could transition to low carbon competitiveness through ambitious emission targets, green energy investments, and incentives that close the gap between short-term costs and long-term economic growth through a green innovation-driven paradigm. Success stories from China, Denmark, and the UAE demonstrate this approach. The document suggests Kazakhstan design a long-term low carbon vision and eco-city projects, and introduce carbon pricing

1. Green Innovation for
Future Competitiveness
Raekwon Chung
Former Climate Change Advisor to the SG of the UN
Advisor, UN SG Panel on Water & Disaster

2. New Energy-Ecology-Economy (3E) Paradigm
• Current Negative 3E Paradigm: Fossil Energy
 Ecological Climate Crisis  undermining
Economic dynamism
• New win-win 3E paradigm: Low Carbon
Green Energy  reduce ecological/climate
crisis  promote Economic Growth & Jobs
• New 3 E: strategy for transition towards
Low Carbon Future & Green Economy

3. Innovation
• Critical for new 3E paradigm
• But is not just a matter of Money & Technology
• Has to be supported by Economic, Industrial &
Fiscal POLICY
• Not just technological Innovation
• But Innovation in POLICIES<economic & fiscal>
• Policy Innovation for 3 E:
consistent, long term strategy
to build Future Low Carbon Competitiveness,
while moving away
from High Carbon Energy

4. Paris Climate Agreement 2015
• Transition towards Low Carbon Future
• Opened New Opportunity for Low Carbon
Innovation
• Low Carbon Green Energy: key driving
force for future industrial competitiveness
• Kazakhstan enjoys High carbon
competitiveness based on fossil fuel
• But How to turn High carbon
competitiveness into Low Carbon/Green
Competitiveness ?

5. Green Energy Innovation
• Not just an issue of technical R&D
• Has to be a part of Economic System Change
towards Low Carbon Green Growth
• Driver of Win-Win 3E paradigm for
Economic Growth and Jobs
• Re-design Physical Structure: Urban Plan,
Transport & Energy System, Building
• Set ambitious Emission Mitigation Target
& Energy Efficiency Standards:

6. Closing Time Gap
• Long Term: Higher Economic Growth & Jobs
through Win-Win 3E based on Green innovation
• Short Term: Cost & Burden (mitigation/energy
efficiency/green energy)
• Government Role: close the time gap
by Providing incentives for Green Energy
& discouraging High Carbon fossil fuel
• Carbon Pricing: Fiscal Reform, powerful tool
for raising Money & encouraging Innovation

7. Carbon Pricing
• Powerful tool for Low Carbon Green Innovation
• In the short run; Incentive for ambitious
mitigation action & Innovation,
mobilize money for R&D
• In the long run: Create new market for low carbon
products and services,
Stimulate economic growth & jobs

8. SUCCESS STORIES
• China: ambitious target; To lower carbon dioxide
emissions per unit of GDP by 60% to 65% from 2005
levels by 2030; Emission Trading, Carbon Tax; Export
solar cell, wind power turbine; electric scooter, electric
taxi, bus,
• Denmark: Vestas, wind turbine technology
• UAE, Iran, Abu Dhabi: investing in Solar energy and
low carbon sustainable eco-city, Masdar, strategy to
pioneer future competitiveness in the low carbon future
& prepare for “Beyond Oil Era” (depletion of oil reserve)

9. Suggestions for Kazakhstan
• Design long term vision for Transformation
towards Low Carbon Green Economy with
ambitious mitigation target
• Invest in pioneering central Asian style eco-
city: low carbon transport, energy, building,
urban planning  can be exported to many
other central Asian countries with similar
climate
• Introduce Carbon Tax and Pricing to
stimulate green innovation, economic
growth & jobs: gradual consistent long term
push critical