Dear CAREC member countries, development partners, and colleagues,
Greetings!
The year 2023 was marked by significant milestones and achievements for the CAREC Program. Close to a hundred events were held, and impactful activities were implemented across clusters, sectors, and cross-cutting themes under the CAREC 2030 Strategy. As of 30 June 2023, CAREC's cumulative investments since 2001 reached $47.27 billion, covering 257 projects. (You may read the "CAREC Program Progress Report" here).
The CAREC Climate Change Vision was endorsed at the 22nd CAREC Ministerial Conference (MC) held on 30 November 2023 in Tbilisi. This was also the first physical or onsite MC held since 2019.
This newsletter looks back at the highlights of the CAREC Program in 2023 and gives a preview of what is forthcoming in 2024. We reiterate our firm commitment to reinvigorating regional cooperation in these times of change.
We look forward to continuously engaging with you in 2024 and beyond!
Sincerely yours,
CAREC Secretariat
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The organizing committee from the Government of Georgia and CAREC Secretariat at the 22nd CAREC Ministerial Conference in Tbilisi in November 2023
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Highlights of the 22nd CAREC Ministerial Conference
(November 2023)
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Member countries of the CAREC Program endorsed the Regional Action on Climate Change: A Vision for CAREC, recognizing the need for collective action in addressing the impacts of climate change in the CAREC region. The vision aims to help countries implement their commitments under the Paris Agreement and the Sustainable Development Goals by promoting regional actions for energy transition, decarbonization, innovative financing solutions, and climate-resilient infrastructure and policies.
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Read the joint statement of the 22nd CAREC Ministerial Conference, the message from the 2023 CAREC Country Chair, the Prime Minister of Georgia, Mr. Irakli Garibashvili, and the statements from other CAREC member countries.
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Deepening cooperation and accelerating efforts toward CAREC 2030
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Six years since the endorsement of the CAREC 2030 Strategy, the rapidly evolving global landscape continues to present economic and geopolitical uncertainties for the region, combined with the intensifying challenges from climate change and health risks. While noting the CAREC Program’s significant progress in enhancing connectivity and its effective role as a platform for dialogue and coordination, an independent evaluation of ADB support for the CAREC Program (2011–2021) suggested the need to improve regional economic competitiveness and expand regional public goods, among others. CAREC's crucial role in enhancing international value chains was also highlighted at the Tbilisi Silk Road Forum in October 2023.
Against this backdrop, a Midterm Review of CAREC Strategy 2030 will be undertaken in 2024 to assess how well the Strategy remains fit-for-purpose in the context of CAREC members’ evolving development context, needs, and priorities, including a low-carbon, climate-resilient future for the CAREC region and beyond.
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In January, the SPS working group met in Tbilisi, Georgia, and discussed the emerging issues and opportunities to protect agri-food value chains through enhanced regional collaboration and deepened coordination among agriculture, health, environment, and trade agencies under a One-Health approach.
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In February, senior representatives from CAREC countries, the ADB, International Monetary Fund, and World Bank gathered in Tbilisi to share experiences and lessons learned in mobilizing domestic revenues, designing efficient and equitable tax policies, and implementing carbon taxation.
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In April, the CAREC University Startup Generator 2023 awarded the winners of its competition among 580 students from 10 CAREC countries on innovative solutions, namely the NIP (on public transportation), GSL (artificial intelligence-based office productivity), and Goddard-Discovery (research assistance).
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In May, a high-level session in Seoul underscored the need to diversify CAREC members’ economic ties for improved resilience amidst regional external shocks and climate change. The session focused on changing dynamics in labour migration, remittances, and capital flows and measures, alternative trade routes, and new investment sources.
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In May, Georgian authorities shared insights and policies to streamline border crossings and enhance food safety and showcased simplified procedures at the Sarp-Sarpi border crossing point between Georgia and Türkiye. Stakeholders from Kazakhstan, Uzbekistan, and Tajikistan recognized the need to modernize border points, including policy reforms for Shymkent-Tashkent-Khujand Economic Corridor development.
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In May in Tbilisi, the meeting considered the progress and challenges of each transport pillar under the CAREC Transport Strategy 2030, namely railways, road asset management, road safety, cross-border transport and logistics, and aviation. Decarbonization and digitalization in transport were highlighted.
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In June, a policy dialogue in Tbilisi discussed the risks faced by the region’s financial sector due to climate change and highlighted the need for climate risk assessment, private green finance, and improved understanding and disclosure of climate risks by financial institutions.
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In June, the workshop in Tbilisi deliberated on the investment priorities for sustainable tourism development across the CAREC region and the contents of the tourism portal that will support the countries and private sector in stimulating tourism growth.
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In July in Islamabad, Pakistan, delegates from CAREC countries agreed on a roadmap for the development of a disaster risk transfer facility for the CAREC region and discussed a proposal for an ADB-sponsored Disaster Relief Bond. A joint statement was drafted and further endorsed at the 22nd Ministerial Conference expressing countries’ interest to further advance the design and implementation of the proposed regional risk financing solutions.
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In August, the forum held in Urumqi, the People’s Republic of China (PRC), underscored the role of digital technology in driving sustainable economic growth, and discussed the readiness of the CAREC region for digital adoption, investment needs in key digital infrastructure, and opportunities in e-commerce, digital governance, and the CAREC start-up ecosystem.
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In September, the conference in Tashkent, Uzbekistan, shared lessons and plans for digitalizing phytosanitary certificates to ensure safe and efficient trade. CAREC members and development partners expressed their commitment to coordinate and build synergies in supporting countries’ efforts to digitalize and facilitate trade, including the adoption of ePhyto.
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In October, customs officials from select CAREC countries signed a memorandum of understanding in Baku, Azerbaijan, to test the CAREC Advanced Transit System and Information Customs Exchange. The initiative will simplify transit documentation and procedures to promote intra-regional trade among participating CAREC countries.
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In November, the meeting in Almaty, Kazakhstan recognized the need to link climate and health actions with regional health security and closer regional cooperation and agreed on joint priorities for health and climate change.
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In November, the event held at the sidelines of the Global Digital Trade Expo 2023 in Hangzhou, PRC, emphasized the importance of knowledge cooperation and business-to-business partnerships for building a robust digital ecosystem, and a well-functioning globally integrated e-commerce network in the CAREC region.
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In November, the forum in Tbilisi with the theme Empowering Sustainable Energy Investments, underscored the need to strengthen collaboration and interconnectivity on climate-resilient projects in renewable energy, energy efficiency, and sustainable heating to address the region’s needs.
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In November, the first ever CAREC Award for Advancing Gender Equality recognized eleven organizations and individuals—Gender Champions— from ten member countries of the CAREC Program in an awarding ceremony held in Tbilisi.
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Indicative Events for 2024
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- 3rd Technical Working Group Meeting on CAREC Advanced Transit System’s Pilot Phase Implementation (February 2024, Tbilisi)
- CAREC University Innovation Exchange Program 2024: Workshop and Korea Showcase Universities as Enablers of Vibrant Startup Ecosystems (February 2024, Seoul)
- Regional Workshop on Fintech Development in the CAREC Region (February 2024, Tbilisi)
- CAREC Skills Development Workshop (April 2024, Tashkent or Almaty)
- Asia Pacific Trade Facilitation Forum and CAREC Session (April 2024, Samarkand)
- 2nd CAREC Digital Trade Forum and Digital Trade Fair (April 2024, Astana)
- CAREC Digital Steering Committee Meeting (April 2024, Astana)
- 21st Transport Sector Coordinating Committee Meeting (April 2024, Almaty)
- CAREC Gender Study Tour for Awardees and the Regional Gender Expert Group (April 2024, Shanghai)
- CAREC Session in ADB Annual General Meeting (May 2024, Tbilisi)
- Senior Officials’ Meeting (May 2024, Astana)
- Inception Workshop on CAREC Agricultural Development and Food Security Cooperation Strategy (3rd Quarter, tbc)
- CAREC University Startup Generator 2024 (June to July 2024, virtual)
- 2nd CAREC Innovation Week (September 2024, Hangzhou)
- 23rd CAREC Ministerial Conference (October/November 2024, Almaty)
- CAREC Infrastructure Investment Forum (October/November 2024, Almaty)
- CAREC Energy Investment Forum (October/November 2024, Almaty)
To view planned CAREC events in 2024, visit this link.
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New Projects and Technical Assistance
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ADB approved the $100 million Border Efficiency for Sustainable Trade (BEST) Project in December 2023, to enhance Mongolia’s trade sector resilience, promote export diversification and improve efficiency in the movement of people and goods through land ports, incorporating climate adaptation measures and improving regional health security by introducing One Health coordination mechanisms.
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The regional technical assistance (TA) will enable CAREC member countries to adopt a systematic and strategic regional approach to advancing the climate change agenda in line with the Paris Agreement and in key thematic areas and sectors under the CAREC Program.
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Approved in December 2023, the $3 million TA aims to strengthen food security in CAREC member countries and operationalize the Cooperation Framework for Agricultural Development and Food Security in the CAREC Region.
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No country can fight climate change alone. The countries of the CAREC program should take coordinated action to combat the increasing impacts of climate change and find sustainable solutions.
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The ability of the economies of the Caucasus and Central Asia to effectively respond to external shocks depends critically on their cooperation in diversifying trade and transport routes. The right policies and development of the Middle Corridor are a key to success.
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Increasing women's presence in green jobs, particularly in technology, improves their livelihoods while helping meet the demand for labor during a green transition.
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The CAREC region’s vulnerability to natural hazards and climate change impacts necessitates regional collaboration to design and implement innovative risk financing solutions. This report outlines key considerations for establishing a CAREC Risk Transfer Facility, drawing lessons and best practices from other regions, and proposes next steps involving country stakeholders and development partners.
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CAREC countries utilize open-sea ports outside their borders for import and export activities. These ports, situated mostly in non-CAREC members, serve as key international trade hubs, linking CAREC freight through various transportation modes. This study pinpoints areas requiring cooperation among member countries and development partners under the CAREC Program framework.
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Expanding low-cost carrier (LCC) operations is crucial for CAREC’s goal of enhancing regional connectivity and boosting tourism. While some CAREC nations have embraced more open aviation policies, this study emphasizes the necessity for additional liberalization to unlock greater growth potential for LCCs in the region.
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Policymakers and the engineering community need to implement resilient yet sustainable designs and construction solutions, considering that climate change will continue exerting considerable pressure on transport infrastructure. This resource provides technical and practical information to support such work.
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This video underscores regional cooperation as key to overcoming challenges from climate change, supply chain disruptions, and economic instability.
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The portal contains information for travelers on key destinations along the historic Silk Road, statistics, and trends for tourism-related institutions and companies.
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This video shows how real-time air quality sensors installed in Almaty and Bishkek enhance air quality based on the data collected. A case study is developed based on this video.
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