ECONOMIC MECHANISMS FOR DECARBONIZATION

On March 5, 2021, at 15:00, REC “Green Academy” together with the Almaty University of Energy and Communications named after G. Daukeev and the Ministry of Ecology, Geology and Natural Resources (MEGPR) of the RK  held a Webinar on the topic “ECONOMIC MECHANISMS FOR DECARBONIZATION OF THE ENERGY SECTOR”.

The expert meeting was devoted to the discussion of economic mechanisms for regulating the carbon intensity of the energy sector  in order to develop recommendations for the Strategy (Concept) for low-carbon development of Kazakhstan, which is currently being developed by the MEGPR .

The Webinar were  attended by representatives of the MEGPR, the Embassy of the Federal Republic of Germany in Kazakhstan, academia, business,  international expertsand specialists from Germany, Belgium, Russia and regions of Kazakhstan.

The event was moderated by Member of the Green Council under the President of the Republic of Kazakhstan, Director of REC “Green Academy”, Doctor of Economics Bakhyt Yessekina.

The Permanent Representative of the Ambassador of the Federal Republic of Germany to Kazakhstan Dr. Holgar Kolley made a welcoming speech. He spoked  about the measures taken by the German government for decarbonization. Germany, like the rest of Europe, has declared its clmatic neutrality by 2050. Since 2019, the country has been implementing the Climate Change Adaptation Program until 2030. Since this year, Germany has announced its abandonment of coal, a significant reduction in emissions in a number of sectors.

The Webinar participants were also greeted by the Rector of the Almaty University of Energy and Communications named after G. Daukeev Saule Sagintayeva. In her speech, she noted a number of projects on technological modernization of the energy sector, energy efficiency, energy audit, to determine the factors of environmental pollution, carried out on the basis of the university. Particular emphasis was placed on the need to project the measures taken in the field of emission control and adaptation to climate change on the educational programs of universities.In the greeting of the MEGPR of the RK , on behalf of which the Head of Non-Carbon Development Directorate, Climate Policy and Green Technologies Department Gulmira Galieva spoked, it was said about the urgency of the task of achieving carbon neutrality of the Republic of Kazakhstan by 2060, set by the President of Kazakhstan K.K. Tokayev at the UN Climate Ambitions Summit in January 2021, as well as on legislative measures approved in the new edition of the Environmental Code of the Republic of Kazakhstan, on the National Plan to Reduce Emissions for 2021-2025. Currently, the MEGPR, with the support of GIZ, is preparing a draft Concept for Low-Carbon Development of Kazakhstan, which is expected to be approved by the middle of this year.

Further, the head of the GIZ project “Support to the Green Economy in Kazakhstan and Central Asia” Dr. Johannes Schumann made a presentation on the preliminary results of the development of the Concept of Low-Carbon Development in Kazakhstan. In his speech, he also spoke about the measures and economic instruments of decarbonization in the EU countries, the experience of which would be interesting for Kazakhstan.Director of the Green Finance Center Aidar Kazybayev spoke about measures to stimulate decarbonization projects based on green financing instruments (green bonds, CTB, green taxonomy, etc.). CGF employee Milana Takhanova spoke in more detail about the instruments of green bonds and green taxonomy. In 2020, the Center developed the necessary methodological materials on green finance.International expert on sustainable development, Dr. Yerlik Karazhan, in his speech focused on the principles of environmental and social responsibility (ESG), which are actively used in the field of decarbonization of the oil and gas complex of Kazakhstan. Thus, he spoke about measures for scenario forecasting, development of a global supply model, low-carbon development strategies for companies and action plans for the next decade using the example of Total and Shell companies.Aisha Turebayeva, Director of the Strategic Department of JSC NC KazMunayGas, continued the topic of environmental and social responsibility of oil producing companies. According to the results of 2019, KMG is ranked 40th among 249 companies in the world in this area. Out of 17 sustainable development goals, the company has identified 6 relevant goals for itself. Since 2019, carbon and water footprints have been measured. Projects on energy efficiency, renewable energy sources, and reduction of atmospheric emissions are implemented annually. In 2020, KMG approved its long-term environmental policy.

An interesting speech in terms of efficient use of natural resources and reduction of environmental impact was the speech of Managing Director for Innovation, Deputy Chairman of the Board of the Satbayev University subsidiary, Chingiz Cherniyazdanov.According to the new Subsoil Code, methane is a mineral resource. Unfortunately, coalbed methane still escapes into the atmosphere. In his speech, he presented a project for the extraction of coalbed methane, in particular at the fields of the Arcelor Mittal company, and the possibility of using it as an alternative source of energy.

During the Webinar, detailed answers and comments were given to the participants’ questions. Based on the results of speeches and discussions, recommendations were developed for the future   Strategy (Concept) for low-carbon development of Kazakhstan.

Presentations:  https://yadi.sk/d/GxplYz4QWGV6EA

Draft recommendations:  

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