Comment
US and Israeli military strikes on Iran have caused one of the most significant periods of turbulence in energy markets since the start of the war in Ukraine. Supply disruptions have affected key infrastructure in the region: LNG export facilities in Qatar have been shut down, oil refineries in Saudi Arabia have been temporarily suspended, and tanker traffic through the Strait of Hormuz has declined, leading to a sharp rise in oil and gas prices.

The energy crisis has once again strengthened the case for accelerating the energy transition, as renewable energy sources are less vulnerable to geopolitical risks and can enhance countries' energy security. However, rising energy prices can also increase inflationary pressure and financing costs, potentially slowing the development of capital-intensive renewable energy projects.

Comment
EU countries have approved the relaxation of the requirements of the Corporate Sustainability Due Diligence Directive (CSDDD), which regulates the management of environmental and social risks in supply chains. The rules will now only apply to the largest companies — those with more than 5,000 employees and a turnover of more than €1.5 billion, including foreign corporations operating in the EU market — and their application has been postponed until mid-2029. The directive also excludes the requirement to develop plans for the transition to a low-carbon economy. However, companies are still required to identify environmental and human rights risks in their supply chains, and fines of up to 3% of global turnover may be imposed for non-compliance.

Comment
The European Union has approved a new legally binding target to reduce greenhouse gas emissions by 90% by 2040 compared to 1990 levels. This is one of the most ambitious climate targets among the major economies and an important step towards achieving EU climate neutrality by 2050. According to the compromise reached, about 85% of the reductions should be achieved through domestic measures and up to 5% through international carbon credits. The new target will form the basis for reforming EU climate policy and modernising industry.

Comment
The World Bank is considering investing up to $1 billion annually in Kazakhstan over six years as part of a new Partnership Framework Strategy for 2026-2031. Priority areas for cooperation include the development of transport and digital infrastructure, climate projects, the modernisation of the water and energy sectors, and support for financial markets and private investment. Particular attention will be paid to expanding the use of renewable energy sources and improving infrastructure sustainability. According to the Ministry of Energy of Kazakhstan, new renewable energy facilities with a total capacity of 245 MW are planned to be commissioned in 2026.

Comment
Kyrgyzstan has approved a national system for inventorying, monitoring and trading carbon units, which lays the foundation for the launch of a carbon trading market. The system provides for the accounting, reporting and verification of greenhouse gas emissions, and the proceeds from the sale of quotas are planned to be used for the development of environmental projects and the reduction of emissions. In addition, the first phase of a 100 MW wind farm near the city of Balykchy has been commissioned and has begun supplying electricity to the grid. After completion of the two construction phases, the wind farm will be able to generate up to 250 million kWh of electricity per year, fully meeting the electricity needs of the Issyk-Kul region and avoiding GHG emissions from traditional fossil-fuel-based power generation.

Comment
Uzbekistan has joined a regional initiative to develop energy-efficient and climate-friendly cooling technologies, which was discussed at a meeting in Baku attended by Azerbaijan, Kazakhstan and Ukraine. The project is supported by the Global Environment Facility (GEF) and implemented by the United Nations Industrial Development Organisation (UNIDO). The initiative aims to modernize the refrigeration and air conditioning sector through the introduction of energy-efficient technologies, the improvement of refrigerant recycling systems and the development of human resources. At the same time, green energy is actively developing in the country: the total capacity of renewable energy facilities has reached 8 GW (31% of generation), and electricity production from solar and wind power stations has grown to 10.5 bn kWh, thereby reducing gas consumption and greenhouse gas emissions.

Comment
The American company SunHydrogen has signed an agreement with the German company CTF Solar (a subsidiary of CNBM) to scale up the technology of hydrogen modules that produce green hydrogen from sunlight and water. The partnership aims to move from pilot development to the industrialisation of hydrogen module design and industrial production. The project plans to manufacture 1,000 full-size hydrogen modules with an area of 1.92 m², which will be an important step in the commercialisation of the technology. The solution allows hydrogen to be obtained directly from water using solar energy and is considered a promising direction for the development of hydrogen energy. SunHydrogen is developing new technologies for the production of renewable hydrogen in a market that Goldman Sachs estimates will be worth $1 trillion per year by 2050.