The Ministry of Ecology and Natural Resources of the Republic of Kazakhstan, alongside Zhasyl Damu JSC, has partnered with the World Bank to launch the Partnership for Market Implementation Project (PMI). Announced on March 27, 2025, in Astana, this initiative focuses on advancing Kazakhstan's carbon market as part of its move towards green and resilient growth.
Kazakhstan is recognized as the first nation in Central Asia to establish an Emissions Trading System (ETS). The project seeks to enhance the ETS's effectiveness, efficiency, and alignment with international practices. To support this effort, the World Bank's Partnership for Market Implementation (PMI) Trust Fund has allocated a $4.8 million grant, with project implementation expected to conclude by June 30, 2028. The trust fund assists countries in developing and applying pricing instruments aligned with their development goals.
The PMI Project aims to fortify Kazakhstan's ETS, encouraging reductions in greenhouse gas emissions. Additionally, it aims to foster the domestic carbon credits market and develop a strategy for engaging in the international carbon market.
"Strengthening the emissions trading system would allow Kazakhstan to mobilize domestic resources efficiently, helping the country to meet its international commitments, while delivering sustainable, long-term economic growth," stated Kirtan Sahoo, Senior Climate Change Specialist and World Bank Task Team Leader for PMI engagement in Kazakhstan.
During the launch event, representatives from various sectors including government, business, international organizations, and technical experts gathered to discuss enhancing the national ETS. Topics discussed included quota auctioning, ETS coverage expansion, and enhancements in benchmarking. The event also provided a forum for exchanging experiences and exploring new carbon regulation solutions, such as taxes and emission credits.