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2-5 September 2003,Miyazaki,JapanThe 13-th Asia-Pacific Seminar on Climate Change

KKAZAKHSTAN’S RESPONSEAZAKHSTAN’S RESPONSETO CLIMATE CHANGE:TO CLIMATE CHANGE:

experienceexperience in preparation for CDM/JIin preparation for CDM/JI

Lyubov Inyutina,Senior Expert on Environment Policy and Regulation

Climate Change Coordination Center, Kazakhstan

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Countries-leaders in GHG Emissions and Kazakhstan

0

1000

2000

3000

4000

5000

6000

USDChin

aRus

siaJa

pan

IndiaGerm

an UKCan

ada

Korea

Italya

France

Mexico

Austra

liaBras

ilUkra

inKaza

khsta

n

t. m

ln

1990

2000

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Some indicators of Kazakhstan in comparison with other countries

Mal

aysi

a

Saud

i Ara

bia

Ger

man

y

Japa

n

USA

Vene

zuel

a

Mex

ico

Wor

ld

Kaz

akhs

tan

(199

2)

Kaz

akhs

tan

(199

8)

0

5

10

15

20

25to

n pe

r cap

ita

CO2 emissions per capita

0

2000

4000

6000

8000

10000

USAM

alaysi

aChin

aNeth

erlan

dsTor

keySau

di Ara

biaVen

rzuela

Mex

icoW

orld

Kazak

hstan

Energy consumption per capita

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

USA China Torkey Kazakhstan Venezuela

Energy Intensity of GDP

0

0,5

1

1,5

2

2,5

kg/$

USA Malaysia China Netherlands Turkey Saudi Arabia Venezuela Mexico World Kazakhstan

CO 2 emissions per GDP

Toe

per

$ 1

000

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Supply-and-demand on the carbon market

-400 -200 0 200 400 600 800 1000 1200

European Council

Japan

Canada

Australia

USA

Russia

Ukraina

Kazakhstanm

ln.t

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Key steps: progress achieved1995 UNFCCC is ratified

Decision to join Annex 1, COP-5 – 2000.Voluntary obligation on Art. 4.2gUNFCCC. Government Decree on IACCC, Climate Change Coordination Center-working body of IACCC.GHG Inventory for 1992 and Identification of 1992 as a base year

2000

Searching of international partners, MoUsSituation scenarios of macroeconomic modeling and GHG emissions, developing regulation of KP mechanisms in KazakhstanAnalysis of benefits/disadvantages in KP participation for the decision makersParticipation in the development of Energy Development Strategy up to 2030

2003

IAC:Launched the model of national procedures for approval of JI/CDM projects ; approved 2 GHG reduction pilot projects.

MoU with WB 2002

National System for CDM/JI projects review and approval, GHG projects registry. Inventory 1994, 1999,2000. COP 7 decision on Kazakhstan status: Upon ratification of the KP by Kazakhstan and its entry into force, Kazakhstan becomes a Party in Annex1 for purpose of this Protocol in accordance with Ar.,pr.7 of the KP. The COP recognized that Kazakhstan will continue to be a Party not included in Annex1 for purposes of the Convention.

2001

Kyoto Protocol is signed.First National Communication, GHG Inventory - 1990 and 1994. 1999

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Institutional framework: Inter-Agency Commission on Climate Change (Government Decree #590, 2000)

Government of the Republic of Kazakhstan

Interagency Commission on Ratification of the Kyoto Protocol andInteragency Commission on Ratification of the Kyoto Protocol and Implementation of RK’s Obligations Implementation of RK’s Obligations Under UNFCCC (IAC)Under UNFCCC (IAC)

Ministry of Economy and Budget PlanningMinistry of Industry and Trade Ministry of Foreign AffairesMinistry of Environment Protection Ministry of AgricultureMinistry of Energy and Mineral Resources Ministry of Transport & Comm.Ministry of Justice Ministry of Defense Ministry of Finance Ministry of State Revenue

Extreme AgencyObserversObservers:

NGO and Parliament Representatives, Representatives of Donor Countries and Organizations, Representatives of Business

Climate Change Coordination Center(Executive Body of IAC)

Phase-out Ozone Depleting Substances

in Kazakhstan

Support for strengthening of national system for implementation of

UNFCCC, Kyoto Protocol and GHG emissions reductions projects in

Kazakhstan

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National Priorities in Climate ChangeΘThe KP ratification in three stages:

1.2003-2004: without commitments. Anticipated investments $ 50-70mln.2. 2003 – 2005: determination of GHG quantitative obligations and negotiations with world community. Anticipated investments $150-300 mln.3.2005-2007: undertake commitments as Annex 1 Party, at the same time acceding Annex B. Anticipated investments $500-600 mln.

Θ Establishment of normative and legal basisfor realization of financial mechanisms for natural resources management based on the new law on atmospheric air protection:

Θ Development of “national system” under art.5 KP and a national registry functional in accordance with Article 7.4 of the Protocol;

ΘΘApproval of internal procedures on JICDMApproval of internal procedures on JICDMfor consideration, evaluation, verification, monitoring and valifor consideration, evaluation, verification, monitoring and validation of GHG dation of GHG reduction projects under JI/CDMreduction projects under JI/CDM

Θ Development of NSS on greenhouse gas emissions reduction

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1000

2000

3000

4000

5000

6000

7000

8000

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

2025

2027

2029

$ U

SD

Optimistic Realistic Basic variant

Dynamics of GDP per capita

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GHG emissions levels by three scenarios of the economy development for 2008-2012 ,

million tonnes

80

180

280

380

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

1 basis variant 2 realistic variant 3 optimistic variant

264 (105%)

235 (93%)

207 (82%)E

G

C

A

K

F

D

B

Baseline - 252.9 (100%)

ssc

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The Scheme of GHG Project Approval by GoK

Preliminary Project Review by JI/CDM Board

Development of project feasibility

Approved but not financingPreliminary approval

Project submittal and screening

Project approved awaiting financing

Financing found

Project Verification & Certification for UNFCCC ERU’s

Project Submitted for official GOK Review

Review of feasibility Study.s Adherence to Official GOK Law

Project Implementation & Associated MRVP

GOK approved

Circles = Project Developers

Responsibility

Boxes = Government or NGO responsibility

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Project screening criteria in Kazakhstan1. Consistency with the UNFCCC and/or the Kyoto Protocol

2. Consistency with relevant national criteria (project implementation in identified priority sectors under the prevailing legislation)

3. National and local environmental benefits

4. Consistency with the strategic objectives and operating principles of Kazakhstan

5. Measurability of project greenhouse gas emissions

6. Contribution то sustainable development

7. Provision of long-term benefits

8. Potential for significant amounts of greenhouse gas reductions

9. Acceptable Monitoring plan complying with relevant monitoring rules

10. Additional (other) project criteria ( minimized implementation and duplication risks, allow objective evaluation and comparison, replication)

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Japan/Kazakhstan first potential JI/CDM project"Installation of a gas turbine with 25 MW utilizing boiler at the

Uralsk Heat Power Plant"

On 31 January 2002 in Uralsk working meeting on implementation of the energy efficiency project was held to launch joint efforts to address global warming under the Kyoto Protocol and to present UPDD on the project. Participants:Western-Kazakhstan oblast's Akimat, Ministries( of Natural Resources andEnvironmental Protection, of Economy and Trade, Energy and Mineral Resources), Japanese companies (Mitsubishi, Hitachi, Tohoku electrics, NEDO organization), Zhaiykteploenergo, Uralsk Heat Power Plant, Western-Kazakhstan regional electrical company and the Climate Change Coordination Center.

On 20 June 2002 in Astana the MoU between Japan (NEDO) and Kazakhstan(the Ministry of Energy and Mineral Resources, Ministry of Natural Resources and Environmental Protection and the Government of the West-Kazakhstan oblast) was signed. The parties started implementing the project on construction of a gas turbine cogeneration system with the capacity of 25 MW.

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Japan/Kazakhstan first potential JI/CDM projectImportance for several priority activity directions of Kazakhstan:• A gas turbine facility to be installed according to the latest Japan

technology, will significantly increase energy efficiency of the Ural Heat Station and will ensure its environmental safety, conforms to the concerns of the national energy sector development;

• The project will allow both countries to develop internal legal and regulatory mechanisms for implementation of GHG reduction projects, will significantly increase investment attractiveness of Kazakhstan for foreign donors, and will improve economic feasibility of environmental projects;

• Kazakhstan and Japan are becoming leaders in the process of addressing global warming, and they will start taking relevant practical steps well before the World Summit on Sustainable Development in Johannesburg;

• The project cost is US$ 15 million, the Japan party will fund it, and during 2008-2012 Kazakhstan will annually transfer its quota of 62 thousand tons of СО2, generated as a result of the gas turbine facility operation, to Japan.

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Kazakhstan’s potential in energy efficiency and renewable energy resources use

•The Kazakhstan GDP energy intensity is 1,73 toe/ thousand USD, the energy intensity (average) of OECD is 0,19 toe/ thousand USD(2000). If achieving the energy intensity of the developed countries the absolute potential of energy saving of the Republic of Kazakhstan will be 61,51 mln. t.c.e. (tones of coal equivalent or 166,08 mln. t. СО2)

•Hydro potential:about 170GWh/yr, only 8 GWh/yr is in use

•Wind potential: 8m/sec in Jungar Gates

• Solar energy potential: 2,200-3,000 h/yr; 1,300-1,800 kWh/m2

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Next Steps in Kazakhstan

national level business level civil level

• Turn procedures into regulations (legislation)-clear, rationale system:

• Creation of National CDM(JI) Board;

• Start regular Business Forum for outreach;

• Initiate public education campaign w/NGOs.

• Start of GHG inventories at enterprises;

• Business strategy development in the framework of UNFCCC and Kyoto Protocol;

• Development of baselines;

• Identification of list of projects and GHG projects preparation;

• CB Development and rising understanding of benefits of Kyoto mechanisms.

• Information / awareness raising and developing of transparency of GHG project process;

• Showing of economic benefits for small/medium business of Kyoto mechanisms;

• Adaptation of measures and issues of global environment;

• Involvement of into active participation in the process of combating global warming – the way to sustainable development.

1) Create national carbon management structure --institutions, policies, authorities;

2) Design and institutionalize transparent procedures for offset projects;

3) Establish a project pipeline; pre-screen;

4) Мmarket the pipeline to potential investors;

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Kazakhstan Carbon FundTg $Tg $

Council of Fund

JI/CDM National Board

Secretariat(CCCC)

National companies;

Industrial organizations;

NGOs

Government of RK; KP Parties;

IFO; Large business companies

Investment projects:With participation of the government (MIT, MF, MEBP, MEMR, MEP, MA, MTC) and private sector via (MEBP Investment Committee)

Projects portfolio without investor Projects with grant support:Ministries and NGOs

CО2 CО2

GHG emissions reduction

CО2

Tg

$