Carbon Emission - The Times Of Central Asia

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Kazakhstan, with China’s Help, Plans to Export Green Energy to Europe

Although Kazakhstan is a major producer of all fossil fuels – coal, crude oil, and natural gas – it also has the capacity to secure its energy future by prioritizing renewable energy. Fully aware of that, the European Union – one of the former Soviet republic’s most significant trade partners – aims to strengthen its energy ties with Astana, hoping to begin importing not only “green electricity” from the Central Asian nation, but also green hydrogen. On November 25, at Nazarbayev University in Astana, the “Energy in Transition – Powering Tomorrow” traveling exhibition was held, and one of the major topics discussed by energy experts was green hydrogen – hydrogen produced using renewable energy sources such as solar and wind power. It is unlikely a pure coincidence that the German Federal Foreign Office initiated the event. Over the past few years, Germany has shown interest in the development of the Kazakh green hydrogen sector. The most prominent green hydrogen project in Kazakhstan is currently being developed by Hyrasia One, a subsidiary of the German-Swedish energy company, Svevind. In 2021, the company announced its plans for €50 billion ($55 billion) green hydrogen project in the Mangystau Region in western Kazakhstan. It is expected that Hyrasia One will begin the production of green hydrogen in 2030, and the power plant will reach full capacity by 2032. Meanwhile, the authorities in Astana will need to find a way to export this form of renewable energy to Europe, a major energy market for Kazakhstan. Although Astana and Brussels signed a strategic partnership on the production of green hydrogen in November 2022, several challenges remain in the implementation of the deal. Issues such as the high cost, water scarcity in the largest Central Asian state (with water being the key component of green hydrogen production), and a lack of transport infrastructure, are significant barriers to exporting hydrogen from Kazakhstan to Europe. Using Russian gas pipeline systems for transportation of the Kazakh green hydrogen to Europe is not an option given current geopolitical circumstances. To resolve this transportation issue, the Kazakh authorities and their European partners could build hydrogen pipelines across the Caspian Sea, the Caucasus and Turkey to reach southern European countries. The problem is that building such a pipeline infrastructure is very expensive, and it remains uncertain who would be willing to fund such a project. That, however, does not mean that Kazakhstan cannot become Europe’s major green hydrogen supplier. What Astana would have to do, according to experts, is to convert the green hydrogen into green ammonia and then export it to Europe via the Middle Corridor – running through Kazakhstan, the Caspian Sea, Azerbaijan, and Georgia. On the Black Sea coast, ammonia would be loaded onto ships and transported past the Bosphorus to EU members such as Greece, Romania, and Bulgaria. From there, it would be sent further north, where green hydrogen would eventually be extracted from the ammonia. This is a rather complex process, and it is unclear how feasible and...

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Kazakhstan to Plant Forests to Reduce Carbon Dioxide Emissions

On November 18, the British company SEFE Marketing & Trading Ltd. and Kazakhstan’s SAFC LLP signed an emission removal purchase agreement, marking the launch of the country’s first forest climate project. The project aims to plant 3.3 million trees across 1,500 hectares in the Almaty region. According to forecasts, the initiative will achieve an average annual reduction of 26 tons of CO₂ per hectare. Over the 30-year project period, this is expected to remove 1.2 million tons of carbon dioxide from the atmosphere. Additionally, the project is designed to promote agroforestry, ecotourism, and job creation in the region. During a meeting with one of SEFE's Vice-Presidents, Alexander Demidov, and SAFC's CEO Yuri Kim, Kazakhstan’s Prime Minister Olzhas Bektenov emphasized the government’s commitment to supporting environmental initiatives. “We strive to create favorable conditions for attracting foreign investment in environmental projects. The government supports projects aimed at restoring ecosystems, reducing carbon footprint, and developing a green economy,” he stated. Kim added: “This project was supported by the President of Kazakhstan and the Atameken National Chamber of Entrepreneurs, and now we are starting its practical implementation. By combining the competencies of SEFE and SAFC, we will demonstrate Kazakhstan's broad capabilities for attracting foreign investment.” According to Atameken, the project not only lays the groundwork for others to follow suit but also leads the way for new investment opportunities in carbon farming. This approach marks a new stage in diversifying Kazakhstan’s economy, creating potential revenue streams from agricultural production and greenhouse gas emission trading. Kazakhstan’s forest climate initiative demonstrates the country’s commitment to sustainability while attracting foreign investment to bolster its green economy.

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ADB to Help Kazakhstan Move Away from Coal Power Generation

Kazakhstan’s Ministry of Energy and the Asian Development Bank (ADB) have signed a memorandum of understanding, moving closer to the possible early retirement of a coal plant in Kazakhstan under the bank’s Energy Transition Mechanism (ETM) program. Under the memorandum, the ministry and ADB will work toward a pilot transaction that will demonstrate a pathway to significantly reduce Kazakhstan’s greenhouse gas emissions by decommissioning pilot coal plants for renewables or other low-c or repurposing carbon energy technologies. A feasibility study will determine which of the country’s coal-fired power generation, combined heat and power plants and heat-only boilers could be the most viable for early retirement. ADB and Kazakhstan have also agreed to analyze the potential impact of early decommissioning or repurposing of a plant on the country’s power and heat supply, develop the country’s renewable energy generation capacity, and promote regional energy trade. ADB Director General for Central and West Asia Yevgeniy Zhukov commented: “Keeping 1.5 degrees alive means moving away from fossil fuels and toward clean energy as quickly as possible—and ADB’s ETM program aims to do that in a way that considers each country’s energy and socioeconomic development needs. As Asia and the Pacific’s climate bank, we are committed to helping Kazakhstan inclusively decarbonize its economy, and we aim to demonstrate how the clean energy transition can be accelerated in Central Asia.” Minister of Energy of Kazakhstan Almassadam Satkaliyev added, “Kazakhstan will need to develop a new approach in the power, heating, and water sectors as a single technological system, and we rely on ADB’s support and experience. I hope this program will demonstrate new systems' technological shift and reliability through ETM, which can then be replicated in other plants and regions.” Kazakhstan is a major consumer of coal, with 25 billion tons of coal reserves estimated to be the eighth largest worldwide. About 70% of the country’s electricity is produced from coal, while energy-related activity, including heat and electricity production, accounts for more than 80% of the country’s total greenhouse gas emissions. Kazakhstan’s long-term strategy for achieving carbon neutrality by 2060 involves reducing its use of fossil fuels and increasing its renewable power generation capacity.

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Only Half of Kazakhstan’s CO2 Emissions are Subject to State Regulation

Environmentalists say that Kazakhstan's quota system for greenhouse gas emissions covers only half of the country's emissions. This means that the state only has real leverage over large industrial polluters. Experts say that the state needs to pay further attention in the near future to emissions in three sectors: agriculture, forestry, and waste management systems. These sectors currently remain virtually uncontrolled in terms of environmental emissions. Kazakhstan ratified the UN Framework Convention on Climate Change in 1995 and, in 2016, presented its plan to the world community for transitioning to a green economy and achieving carbon neutrality. The carbon neutrality strategy envisages a 15% reduction in the 1990 level of emissions by 2030 (from 386.3 to 328.4 million tons of CO2) and achieving a net zero balance of greenhouse gases by 2060. The country has implemented a quota system for greenhouse gas emissions, and any industrial facility with emissions exceeding 20,000 tons of carbon dioxide per year is subject to quotas. However, those “polluters” whose activities result in emissions of 10 to 20 thousand tons of CO2 are subject to regulation and must report to the state for their emissions, but they are not subject to quotas. Finally, economic entities that do not even reach 10,000 tons of emissions are not obliged to notify the state about the environmental damage they cause. As a result, the state can regulate only half of emissions. Aigul Malikova, coordinator of the Central Asia Regional Environmental Network in Kazakhstan, explained to The Times of Central Asia: “In 2021, according to the national inventory, the actual volume of emissions across Kazakhstan amounted to 340 million tons, and quotas, including even additional ones, were issued for only 176 million, which means that only half of all greenhouse gas emissions fall under regulation, and in fact, we can affect only half of all emissions now. The situation is aggravated by the fact that in 2021, Kazakhstan produced one-third more emissions than the quotas granted; in 2022, this excess was 3%; that is, even regulated enterprises emit more than they are allowed under the quotas.” Malikova also noted there is no data for 2023. Still, it is already clear that the government needs to control not only major industrial polluters but also other sectors of the economy that need to be more accountable in terms of emissions regulation to achieve carbon neutrality. However, assessing their contribution to total emissions is difficult since they are not even legally required to submit reports. Paradoxically, such sectors include agriculture and forestry, which by definition should be environmentally “clean,” as well as the waste management system and housing and communal services. “For these three sectors - agriculture and forestry, waste management and housing, and communal services - data on greenhouse gas emissions could not be assessed at all. In the national reporting, this data is absent in the context of regions. In the reporting of the carbon cadastre, this data is also absent, and because they are not subject to quotas, no...