Kazakhstan Emissions Trading System

Kazakhstan launched its ETS (KAZ ETS) in January 2013. It covered around half of Kazakhstan’s emissions in 2020.

The KAZ ETS cap is formed bottom up and the system covers CO2 emissions from 218 installations in the power sector, centralized heating, extracting industries, and manufacturing. Since 2021, all allowances have been allocated through benchmarking. There is no quantitative limit to the offset credits that covered entities can use for compliance. Domestic offset projects in all economic sectors, other than at installations covered by the ETS, can generate credits.

The groundwork for the ETS development was laid out in 2011 through amendments to Kazakhstan’s existing environmental legislation. The system was suspended in 2016-2017 to tackle operational issues and reform allocation rules, although MRV obligations still applied.

The scheme covers the following sectors: Buildings and Industry

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