WB allocates $4.8M for development of carbon market in Kazakhstan

The Ministry of Ecology and Natural Resources of the Republic of Kazakhstan, in collaboration with Zhasyl Damu JSC, and with the support of the World Bank, has launched the Partnership for Market Implementation Project (PMI), Report informs referring to the World Bank.

This initiative aims to advance Kazakhstan’s carbon market and support the country' transition to green and resilient growth.

Kazakhstan has been a pioneer in carbon pricing in Central Asia, being the first country in the region to establish an Emissions Trading System (ETS). Strengthening Kazakhstan’s ETS is crucial to ensuring its effectiveness, efficiency, and alignment with international best practices.

To support the efforts of the Ministry of Ecology and Natural Resources and Zhasyl Damu JSC, the ETS operator, the World Bank's Partnership for Market Implementation (PMI) Trust Fund has allocated a grant of $4.8 million to Kazakhstan for the project to be implemented by June 30, 2028. The PMI Trust Fund helps countries develop, test, and implement pricing instruments in line with their development priorities.

The PMI Project is expected to strengthen Kazakhstan's ETS and stimulate the reduction of greenhouse gas emissions in the country. The project is also expected to help develop domestic market for carbon credits and a strategy for trading carbon credits 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,” says Kirtan Sahoo, Senior Climate Change Specialist and World Bank Task Team Leader for PMI engagement in Kazakhstan.