Republic of Kazakhstan: Status of Climate Change Activities

1. Republic of Kazakhstan: Status of Climate Change Activities • Population 15,8 million • GDP 24,22 billion $ • Energy Prod. 64,78 Mtoe • Net Imports -26,73 Mtoe • TPES. 38,42 Mtoe 2,43toe/capita 1,59 toe/1000 $ • Power Consumption. 50,66 Twh 3206 kWh/capita • CO2 Emissions 1126,65 Mt of CO2 8,02 t CO2/capita 5,23 kg CO2/$ Kanat Baigarin, Head of the Climate Change Coordination Center

2. Steps of Kazakhstan on UNFCCC Status Development 1995 UNFCCC is ratified Kyoto Protocol is signed 1999 First National Communication, GHG Inventory - 1990 and 1994 Decision to join Annex 1, COP-5 - 2000 2000 Voluntary obligation on Art. 4.2g UNFCCC Government Decree on IACCC Climate Change Coordination Center GHG Inventory for 1992 and Identification of 1992 as a base year 2001 National System for CDM/JI projects review and approval. GHG Registry.

3. Republic of Kazakhstan: Inter-Agency Coordination on Climate Change Government Interagency Commission on Ratification of the Kyoto Protocol and Implementation of Rk’s Obligations Under UNFCCC (IACCC) Ministry of Economy and Trade Ministry of Foreign Affaires Ministry of Natural Resources and Environment Protection Ministry of Agriculture Ministry of Energy and Mineral Resources Ministry of Transport and Communications Ministry of Justice Ministry of Finance Agency on Strategic Planning, Observers: NGO Representatives, Parliament Representatives, Representatives of Donor Countries and Organizations, Representatives of Business Climate Change Coordination Center (Executive Body of IACCC) Inventory and Monitoring of GHG Sinks and Sources Climate Change Mitigation and Adaptation Measures Transfer and Introduction of Technologies Development of Regulatory Basis International Negotiation Process WORKING GROUPS Energy Sector (Energy-saving and Efficiency, Alternative Energy Sources) Non-energy Sector (Industry, Land-use, Etc.) Introduction of Flexible Market Mechanisms and JI Projects Strategy, Microeconomic Analyses and GHG Emissions Forecast

4. Climate Change Coordination Center www.climate.kz Web - Site Project Pipeline National System for CDM/JI Projects Review and Approval Climate Change Coordination Center Project Development: Unified Project Design Document (UPDD) Launch of Pilot Projects Prototype National GHG Registry GHG Emissions Inventory

5. Functions of CCCC • Functions of the Center as executive body of the Interagency Commission: • The Center is responsible for oversight of greenhouse gas (GHG) reduction projects • The Center advises the Government of Kazakhstan on development of mechanisms for registration and approval of GHG emission allowances (credits). • Creation of the national system for evaluation of potential GHG reduction projects on the basis of environmental, national development, and financial considerations. • The Center creates the basis of a national system for legal and institutional regulation of environmental activities taking into account flexible market mechanisms. • To promote development of the national process the Center should: • Consolidate activities on climate change abatement within the country and at the international level • Develop a National Strategy for GHG reduction • Facilitate promotion of public activities and interest in implementation of the UNFCCC. • Initiate involvement of environmental NGOs and business in the process • Compile a library of international experience on climate change topics • Inform the public on the challenges of climate change and its impacts on environment, health and economic development

6. Accomplishments in Kazakhstan (1) • IAC and CCC functioning & widely recognized • Contacts w/JI&CDM offices around world • Draft MOUs with Dutch, World Bank, others • Training/seminars in project prep, JI/CDM methodologies • Project Developer’s Manual Distributed • CDM/JI Baseline Assessment, Validation, Monitoring, Verification and Certification procedures accepted as basis for official standards

7. Accomplishments in Kazakhstan (2) • Draft registry designed and accepted • Extensive networking with project developers and potential investors -- 40 projects and 8 UPDDs • Web site www.climate.kz up in 2 weeks • project pipeline, database of developers, registry, hot links, general info. • Draft laws “On Air Protection” and “On Ozone Layer Protection and Climate” • CCC to coordinate inter-agency task force on energy efficiency (prepare strategy in 2001, begin implementation in 2002)

8. Legislation Development Existing laws Laws under development Environment Protection Law, 1997 Atmospheric Air Protection Law Energy-saving Law, 1997 Climate and Ozone Layer Protection Law Normative and sub-law acts

9. National Priorities • Creation of legal basis for realization of economic mechanisms for natural resources management using the new law on atmospheric air protection; • Approval and introduction of internal procedures for consideration, assessment, verification, monitoring and validation of CDM/JI projects on GHG reduction; • Integration of GHG inventory in the national statistical reporting system and the national system of environmental monitoring; • Development of the National Strategy on greenhouse gas emission reduction and improvement of energy-efficiency. • It is also needed: • 1.To develop a target short-term program on energy-saving and greenhouse gas emission reduction; • 2.To develop Feasibility Studies and to launch pilot projects on GHG emission reduction, the top priority directions for projects are: • Energy-efficiency and energy-savingin cities both in the sector of energy production and in the sector of energy consumption; • Energy supply in rural areasthroughintroduction ofautonomous systems using small energy resources: mini hydropower stations, wind stations, small diesel plants, etc.; • Construction of large wind power stations; • Utilization of associate gas on oil fields; • Utilization of mine methane;

10. Short-term outlook To start in 2001 developing legal and institutional infrastructure for creation of market for carbon credits. To introduce the act regulating the National Registry of GHG emissions from GHG sources and of GHG sequestration by sinks; To introduce the new law «On atmospheric air protection», providing for legal regulation of emissions through use of economic mechanisms, that also allows to regulate GHG emission reduction according to the ultimate goals of the UNFCCC, ratified by Kazakhstan. To conclude a relevant agreement and to launch pilot JI projects with external investors for development of normative and legal mechanisms and for technical adjustment of CDM/JI projects to the country’s economy; To begin establishing legal and technical basis and system of voluntary reduction, limitation and emission trade for enterprises and firms of the country with further distribution of the resulting credits among them at the internal market, as well as at the external market; To establish Kazakhstan’s Carbon Fund as a mechanism of governmental participation in realization and financing of CDM/JI projects.