Enhancing Carbon Market in Kazakhstan: Suggested Major Changes Proposed by AIFC
Astana, Kazakhstan — The Astana International Financial Centre (AIFC) has proposed a series of reforms to bolster Kazakhstan's carbon regulation system, aiming to enhance its carbon market and decarbonization efforts. The recommendations, detailed in a report published on February 17, focus on updating regulations, boosting the emissions trading system, and fostering green finance.
The AIFC highlights the need to modernize regulations and align them with international standards, such as OECD principles, to increase transparency for investors and market participants. This step aims to reinforce the carbon trading system's functioning.
Key reforms target the Emissions Trading System (ETS) in Kazakhstan, which has been operational since 2013. The suggested improvements aim to expand the system's scope and effectiveness, enabling Kazakhstan to achieve its national targets of reducing greenhouse gas emissions by 15% by 2030 and reaching carbon neutrality by 2060.
The AIFC aims to play a significant role in facilitating green finance and attracting international investments in Kazakhstan's decarbonization projects. The AIFC serves as a hub for sustainable infrastructure financing and green energy initiatives, providing an appealing legal framework for investors.
The proposed reforms also involve developing Kazakhstan's carbon market as part of a broader green economy strategy. This approach targets vital sectors including energy, transport, industry, and agriculture, with a focus on innovative climate action mechanisms and mobilizing finance for sustainable infrastructure.
Regional collaboration is another crucial aspect of the AIFC's role. The organization plans to host key regional climate forums, such as the Regional Climate Summit 2026, fostering cooperation on low-carbon transition strategies, climate finance, and integrated decarbonization projects across Central Asia. This regional coordination strengthens Kazakhstan's domestic reforms and carbon market development.
The reforms proposed by the AIFC are designed to make Kazakhstan's carbon market more efficient, transparent, and attractive to investors, thereby speeding up the country's progress toward carbon neutrality and sustainable development goals.
- The AIFC emphasizes the importance of environmental science in aligning Kazakhstan's regulations with OECD principles, aiming to enhance the transparency of the carbon trading system.
- To achieve Kazakhstan's national targets of climate-change mitigation, the proposed reforms focus on expanding the Emissions Trading System's scope and effectiveness, particularly in sectors like energy, transport, industry, and agriculture.
- As part of the broader green economy strategy, the AIFC is planning to develop Kazakhstan's carbon market, attracting finance for sustainable infrastructure and green energy initiatives, while fostering regional collaboration on low-carbon transition strategies across Central Asia.
