Kazakhstan has launched the Partnership for Market Implementation Project (PMI), backed by the World Bank, to advance its carbon market and support the country’s transition to sustainable growth.
The initiative is led by the Ministry of Ecology and Natural Resources in collaboration with Zhasyl Damu JSC.
It aims to refine Kazakhstan’s Emissions Trading System (ETS), encourage emissions reductions, and develop a domestic carbon credit market while positioning the country for international carbon trading.
The World Bank’s PMI Trust Fund has allocated a $4.8 million grant to support the project, which will run until June 30, 2028, according to a statement last week.
As the first Central Asian country to establish an ETS, Kazakhstan has been a regional leader in carbon pricing, the World Bank said.
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Strengthening its ETS is key to improving efficiency, aligning with global standards, and enhancing its impact on emissions reductions.
According to Kirtan Sahoo, Senior Climate Change Specialist and World Bank who is responsible for PMI engagement in Kazakhstan, enhancing the ETS will help Kazakhstan efficiently mobilize resources to meet its climate commitments while fostering long-term economic growth.
At the project’s launch event in Astana, the capital of Kazakhstan, government officials, businesses, international organizations, and technical experts discussed key aspects of strengthening the ETS.
Topics included quota auctioning, expanding coverage, and refining benchmarks. The event also provided a platform for exploring additional carbon regulation tools, such as emissions taxes and carbon credits.
