Towards the integration of the carbon units trading system of the Republic of Kazakhstan and the European Union
The EU was one of the first in the world to achieve the development of ETS. Major progress in the development of ETS has been achieved in the EU, with the EU Emissions Trading System (EU ETS) launched in 2005 as a key element of its strategy to reduce greenhouse gas emissions. The EU ETS is the world's largest carbon units trading market. The trading scheme creates conditions for the efficient allocation of carbon credits, which, in turn, are reduced annually, forcing the economy to decarbonize.
NJSC "International Green Technologies and Investment Projects Center" (hereinafter - the Center), within the framework of the ongoing reform, is the operator of the State Register of carbon units of the Republic of Kazakhstan. Realizing the need to integrate the ETS of the Republic of Kazakhstan with similar international systems, with an assessment of the risks resulting from such integration, a cooperation mechanism and integration is being is worked out.
With this purpose, on December 6, 2021, a bilateral meeting of the Center with the Institute for Environmental Protection - National Research Institute under the Ministry of Climate and Environment of the Republic of Poland was held in the city of Warsaw (Republic of Poland) in a hybrid format. During the meeting Daniyar Yerenchinov, Chairman of the Board of Directors of NJSC “IGTIPC: signed a Memorandum of understanding and cooperation. The National Centre for Emissions Management (KOBiZE), which administers the European Union Emissions Trading System (EU ETS) in Poland, including maintaining the Polish part of the register of EU emissions permits, has been identified as a partner of the Center for the work on forming the ETS of the Republic of Kazakhstan.
Cooperation in this area will make it possible to implement the ETS of the Republic of Kazakhstan in accordance with the best world practices and minimize the risks of the Republic of Kazakhstan from the introduction of the EU cross-border carbon regulation mechanism (CBAM).
The Polish side, represented by Krystian Szczepański, Director of the Institute for Environmental Protection - National Research Institute, expressed its readiness to exchange experience, expert support, scientific and methodological support in the framework of the integration of the ETS of the Republic of Kazakhstan with the similar EU system. The Polish side proposed to discuss several cooperation issues at the next meeting at the level of the expert community. According to Krystian Szczepański, this is the first such international cooperation in the field of carbon regulation for them, which will serve as an example for other countries.
In turn, Daniyar Yerenchinov said about the need for partnership assistance from the Polish side in building the ETS of the Republic of Kazakhstan by analogy with the ETS of the EU.
Coal generation in Poland's energy balance is the largest among all EU countries - about 80%. Thus, the issues of abandoning coal generation are acutely on the agenda for this country. In this context cooperation between Kazakhstan and Poland on the decarbonization of the economy is relevant with similar tasks.
