Program Overview
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Kazakhstan has been a pioneer in carbon market development in Central Asia, launching its national Emissions Trading Scheme (ETS) in 2013. Now in its fifth National Allocation Plan (2022–2025), the ETS covers approximately 40% of national Greenhouse Gas (GHG) emissions. The design of the current system provides an economic signal for decarbonization, but it is uncertain whether the resulting price incentive is strong enough to shift investment and retire high-carbon generation.
In alignment with its updated climate commitments, or Nationally Determined Contribution (NDC)—which sets an unconditional target of 15% GHG emissions reduction by 2030 (from 1990 levels)—Kazakhstan is actively working to enhance the impact of its carbon pricing instruments. The country also has an ambitious long-term goal of achieving carbon neutrality by 2060.
To support these national commitments, the PMI Program in Kazakhstan was extended to June 2028, with updated implementation arrangements and an expanded focus on ETS reform, stakeholder engagement, and just transition. A formal program launch took place in Astana in March 2025, reinforcing Kazakhstan's commitment to advancing low-carbon development pathways.
Objectives & Activities
The PMI Program in Kazakhstan aims to strengthen the national carbon pricing framework to contribute to the country’s 2030 and 2060 climate goals, with a focus on ETS effectiveness, carbon pricing expansion, and stakeholder readiness. Key activities include:
- Strengthening the Emissions Trading Scheme (ETS): Support technical and policy reforms to enhance emissions reductions, particularly in the energy sector, by improving allocation rules, price signals, and market functioning.
- Supporting Expansion of Carbon Pricing Instruments: Explore options for broadening the scope of carbon pricing to new sectors or mechanisms, including carbon taxes or crediting frameworks, in line with Kazakhstan’s evolving policy context.
- Contributing to NDC and Carbon Neutrality Roadmaps: Provide technical inputs and modeling support to align ETS development and carbon pricing reforms with Kazakhstan’s updated 2030 NDC and 2060 carbon neutrality target.
- Stakeholder Engagement and Just Transition: Facilitate inclusive dialogue on the social and economic dimensions of carbon pricing and provide capacity building for managing distributional impacts in high-emitting sectors.
Regional Knowledge Sharing and Capacity Building: Lead and participate in regional workshops on emerging tools for financing low-carbon development, including workshops delivered in October 2024 and June 2025, contributing to knowledge transfer within Central Asia.
Additional Resources:
Country Market Based Approach
Capacity Building & Stakeholder Engagement
International Carbon Markets
