Kazakhstan

Kazakhstan’s stated national priority is to focus on low-carbon development following the models of Denmark and Norway. This is showcased in the two-decade national strategic plan of sustainable development. An “ecological” perspective across all sectors of the economy has been adopted, and various national ministries and government programmes have incorporated climate change and sustainability into their strategic frameworks.

The majority of legislation on energy efficiency and renewable energy has been passed in the past 10 years. From 1985 to 2005, production of hydrocarbons rose 225%. GHG emissions stand to rise significantly as national exploitation of natural gas, petroleum and coal increase. Inefficient technology and practices have resulted in significant energy losses and higher GHG emissions. As the government considers the exploitation of the country’s oil, natural gas and coal reserves essential to economic development and the quality of life of its citizens, much emphasis has been placed on modernising the energy industry, maximising efficiency as well diversifying the industry through incentivising exploitation of renewable sources. Legislative action in this arena culminated in the introduction of a pilot Emissions Trading Scheme in 2013.

In 2013 the Ministry of Environment and Protection published a document titled “Transition of the Republic of Kazakhstan to Green Economy,” which identified regulatory priorities as well as legislative opportunities for green growth. The recommendations include adjusting existing laws and regulations to coincide with a “green economy”, including tax breaks and investment incentives for priority sectors. The document also points to the “Green Bridge” initiative as a means to transfer technology and best practices within the Eurasian and Central Asian regions.

Desertification is a major concern, with two thirds of the country vulnerable to it. Reduced water levels in the Aral Sea lead to the salinification of inland soils. Climate conditions lower crop yields and are predicted to worsen as a result of climate change. Reversing the degradation of land through reforestation and restoration of abandoned farmlands is a priority. Likewise, water scarcity is major concern, complicated by the geopolitics of the region, since much of Kazakhstan’s water flows from neighbouring countries. Adapting to a harsher climate and water scarcity, especially as it relates to agricultural production and to the sheep rearing industry, has been the focus of the adaptation debate.

Carbon pricing

Kazakhstan began trading carbon in 2013 for a pilot period of one year. Should the trading scheme be successful, a second trading period will be enacted to continue trading until 2020. Carbon trading on the Kazakh Emission Trading Scheme (ETS) was codified through an amendment to the Ecological Code law on 3 December 2011 and is further regulated by 17 government decrees and 14 ministerial decrees. Six sectors trade on the market: agriculture, transportation, oil and gas, mining and metallurgy, chemical industry, and the energy industry.

At the start of year one, 178 companies from these six sectors were expected to participate in the scheme, all with annual CO₂ emissions estimated to exceed 20,000 tons per year. An offset scheme is also in development, with some details about which types of projects would be considered to offset carbon emissions, but incomplete details as to whether any limits would be applied to offsets claimed by operators. The ETS was developed with a close eye towards EU policies regulating carbon trading, with the aim of linking the national scheme to the larger market in the future.

Energy supply

Kazakhstan has made significant legislative progress over the past decade to diversify its energy production with renewable sources as well as through regulation to incentivise and require more efficient energy technologies on the supply side. The Law on Power Industry of 2004 established a list of policy directives for regulating the power industry, including greater efficiency and the development of renewable energy sources. In 2006, The Concept of Transition of the Republic of Kazakhstan to Sustainable Development for the Period 2007-2024 further strengthened the policy framework for energy efficiency and renewable energy by tying them to the cross-sectoral and cross-ministerial strategic plans for economic and social development. It states an objective of raising the national sustainability index to 25% by 2024, through the use of energy technology and efficiency. Parliament in 2007 incorporated global warming as an explicit reason for pursuing energy efficiency and renewable energy. A 2011 amendment established the regulatory authority to establish emissions quotas and to plan the ETS.

Energy Demand

In 2011, the Law on Energy Saving reinforced the government’s legal authority to regulate the energy markets based on principles of energy savings and efficiencies and authorised a government commission to require certain minimum standards of energy efficiency for mechanical equipment, buildings, and other energy consuming structures.

REDD+ and LULUCF

Over two thirds of the country is prone to desertification, a vulnerability that, along with water scarcity, the government has prioritised in recent years. In 2013 the government announced it would establish a National Centre to Combat Desertification, for which it hopes to attract international investments and collaboration. It has been working to combat desertification by preserving the water level of the Aral Sea, successfully reversing its shrinking and reducing the amount of salt that has been blown inland. The World Bank has financed reforestation projects for some 25,000 ha of land as well as the restoration of over 150,000 ha of either abandoned or degraded farmlands.

Adaptation

Kazakhstan’s 2005 Second National Report to the UNFCCC presents climate change scenarios and possible adaption measures. The report says the agricultural sector stands to suffer the most from changes in climate due to soil degradation, desertification, higher temperatures and decreased fresh water resources. As 50% of the water that Kazakhstan uses flows from China and other neighbouring countries, the government has repeatedly expressed concern for water security in long-term risk assessments.

Kazakhstan has incorporated adaptation measures into its long-term ecological and economic plans. The Concept of Transition of the Republic of Kazakhstan to Sustainable Development for the Period 2007-2024 incorporates many of the priorities of the Concept of Ecological Security of the Republic of Kazakhstan 2004-2015. Ministerial programmes to combat desertification, secure and preserve potable water, and sustainably develop rural lands for agricultural use may be considered adaptation programming.

The Ministry of Environment is reported to be drafting a national strategic plan specific to adaptation. No drafts had been released at time of publication.