COP31: Transforming Kazakhstan’s Emissions Trading System Through Digitalization

From Nov. 9 to 20, Antalya, Türkiye, is hosting the 31st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP31). Its main themes are climate finance, adaptation, the energy transition, reducing the energy intensity of buildings and reporting on commitments made.

Bakhyt Yessekina. Photo credit: personal archive.

Since the first days of its independence, Kazakhstan has been an active and responsible participant in global processes on sustainable development and climate change: it signed and ratified the Kyoto Protocol in 2009 and subsequently joined the Paris Agreement in 2016. 

This was preceded by extensive expert and analytical work by the Ministry of Environmental Protection, renamed the Ministry of Ecology and Natural Resources in 2021, with support from the World Bank, the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB), the Organization for Economic Co-operation and Development (OECD), the United Nations Development Program (UNDP), national experts and the National Chamber of Entrepreneurs of Kazakhstan. 

Today, Kazakhstan positions itself as a leader in advancing the green energy transition not only in Central Asia but also across the Commonwealth of Independent States (CIS).  Kazakhstan was the first country in the region to adopt a Strategy for Achieving Carbon Neutrality by 2060. This year, by Sept. 1 order of the Prime Minister, a Plan of Organizational Measures for implementing the Strategy was approved. 

The plan will help integrate decarbonization principles into all areas of the national economy, including sectoral planning systems and the monitoring, reporting and accounting of greenhouse gas emissions on an innovative, digital basis.

The National Pavilion of Kazakhstan at COP31. Photo credit: Yessekina’s personal archive.

The initiative of President Kassym-Jomart Tokayev to harness the potential of artificial intelligence (AI) is especially relevant to resetting the country’s national emissions trading system. Speaking at the BRICS+ summit on Sept. 13, he again underlined the role of AI in global development and noted that “Kazakhstan regards AI as a strategic priority and is ready to use its advanced computing infrastructure, as well as national and UN digital centers, to expand effective cooperation” for the country’s sustainable development.

COP31 experts note a revival of global carbon trading, particularly in the submission of projects to the voluntary carbon market, which undergo a multi-stage review by  the Integrity Council for the Voluntary Carbon Market (ICVCM). As regards the regulated greenhouse gas market – existing national emissions trading systems and their participation in global carbon trading – discussions continue on avoiding double counting and on building the necessary carbon infrastructure.

Among Asian countries, Kazakhstan was one of the first to launch an emissions trading system (KazETS). It covers 220 installations in the six basic sectors of the economy and is now undergoing a transformation through the development and introduction of auctioning and of production benchmarks drawing on EU and OECD experience. At the same time, full participation of Kazakh enterprises in global carbon trading and access to the carbon markets of other countries require, first and foremost: a gradual phase-out of free allowances; a higher price per tonne of greenhouse gases; the transfer of the existing MRV (monitoring, reporting and verification) system to a digital platform.

For Kazakh exporters, the absence of a modern, internationally recognised infrastructure for monitoring, reporting and verifying CO₂ emissions, and of verifiers accredited in line with international requirements, is currently a serious challenge. At the same time, the experience of leading carbon market players and platforms such as Sylvera, BeZero Carbon, Isometric and Calyx Global shows that AI makes it possible to assess the integrity and risks of carbon projects, to evaluate the carbon footprint and the contribution of enterprises and sectors to the Sustainable Development Goals, and to build digital solutions, including under Article 6 of the Paris Agreement.

At COP31, the National Pavilion of Kazakhstan will also present a number of digital solutions for resetting the national ETS and creating a regional digital climate hub with the support of the UNFCCC. We hope that this initiative, developed by experts of Astana Hub together with Green Academy, the University of Central Asia and the Kunayev Institute of Mining, with the support of the Swedish company Planboo and SagtaAI, will be supported by the delegations of the Central Asian countries and included in the outcome document of COP31.      

The author is Professor Dr. Bakhyt Yessekina, a member of the Green Council under the President of Kazakhstan. Yessekina is the head of the Green Academy Scientific Research and Education Center.  

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of The Astana Times. 


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