Overview

Description

Kazakhstan launched its ETS (KAZ ETS) in January 2013. It covered around half of Kazakhstan's CO2 emissions in 2024, stemming from 229 installations across the power, centralized heating, extractive industries, and manufacturing sectors. Covered entities must surrender compliance units for all their covered emissions. The cap is based on historical production volumes and established benchmarks, with a reserve available to covered entities that increase production and to new entrants. The system entered Phase 6 in 2026, covering the period through 2030. It was briefly suspended in 2016 and 2017 to address operational issues and reform allocation rules, though MRV obligations continued during the suspension. A domestic offsetting standard, the Qazaq Green Certificate Program, was developed in 2023. Credits certified under this standard are not currently eligible for use in the KAZ ETS.

Recent Developments

In October 2025, a draft National Allocation Plan for Phase 6 (2026–2030) was published, envisaging annual cap reductions of 10.4–23% relative to the 2025 level. The introduction of auctioning remains under development.

Coverage

The Kazakhstan ETS applies to CO2 emissions from the power sector and centralized heating as well as certain industry sectors.

Pricing and Allocation Approaches

Free allocation (Intensity-based)

Compliance Approaches

Annual

Relation to Other Compliance CPIs

The Kazakhstan ETS is not linked with any other system.

Covered Sectors

Electricity and heat

Industry

Mining and extractives