The Agency for Strategic Planning and Reforms of the Republic of Kazakhstan initiated a discussion of the development of carbon trading in Kazakhstan

Under the auspices of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan the AIFC Green Finance Centre (hereinafter – GFC) hosted a two-part webinar on August 25 and 27, 2021, on the development of carbon trading in Kazakhstan as an important component of the decarbonization strategy of the economy.

This webinar, where active players in the emission trading market shared their experience and expertise, was held by the Agency to increase expert cooperation in discussing the next steps for the industry in the country and the region.

Specifically, the webinar focused on the following 2 topics: “Prospects for the development of the carbon trading system”, “Offset policy and the role of monitoring, reporting and verification in the development of the carbon market”.

Seminar participants, including the representatives of the Ministry of Ecology, Geology and Natural Resources of the Republic of Kazakhstan, Kaspy commodity exchange, AIFC, World Bank, emission verifier companies, representatives of business associations, real sector companies and experts discussed a wide range of issues to understand how the market works: characteristics of the emission accounting system, regulation, verification, information disclosure, the main directions for the emission trading reform and regulation of the process, historical information and research done so far.

To note, during the webinar, a GFC representative talked about the work currently being done by AIFC to explore the possibility of carbon units and derivatives trading on its site along with related contracting based on the AIFC law. The discussion also touched upon the role of various agents in the development of emissions trading, the possibility of linking KazETS with the EU ETS, given the international experience, as well as the problems and prospects of the primary and secondary exchange trading market.

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The Astana International Financial Centre (AIFC) was created by the initiative of the First President of the Republic of Kazakhstan, Leader of the Nation, Nur-Sultan Nazarbayev as part of the “100 steps to implement five institutional reforms” national program. The Management council of the AIFC during the council’s meeting on July 2, 2020 approved the Centre’s development strategy until 2025. In accordance with the strategy, the vision of AIFC is in becoming the leading financial centre in the region that includes Central Asia, the Caucasus, EAEU countries, western China, Mongolia, and Eastern Europe.

The mission of the AIFC is in assisting the sustainable and long-term development of the region. As the head of state Tokayev noted, “AIFC, with its unique opportunities, can act as a universal platform that connects the countries in the region.” The strategic directions for the sustainable development of the AIFC include the development of a circular economy, financial technologies, and “digital financial centre.”

For more information about the AIFC, follow the link www.aifc.kz

The AIFC Green Finance Centre is an AIFC Organisation created to enable the development of green finance in Kazakhstan and Central Asia. The main goal is to bring investments to sustainable economy through trending financial instruments, such as green and social bonds. In addition to that, the AIFC Green Finance Centre, being a regional think-tank, provides strategic and business consulting in green finance and sustainable development to Governments, quasi-state organisations and entrepreneurs. The Centre provides initial assistance to potential issuers, investors and market players on preparations for the issuance of green bonds on the AIFC Exchange (Astana International Exchange).