I.O.'S ORDER OF THE MINISTER OF ECOLOGY, GEOLOGY AND NATURAL RESOURCES OF THE REPUBLIC OF KAZAKHSTAN

of June 29, 2021 No. 221

About approval of Rules of trade in carbon units

According to Item 5 of article 299 of the Ecological code of the Republic of Kazakhstan, PRIKAZYVAYU:

1. Approve the enclosed Rules of trade in carbon units.

2. To provide to department of climatic policy and green technologies of the Ministry of ecology, geology and natural resources of the Republic of Kazakhstan in the procedure established by the legislation:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this order on Internet resource of the Ministry of ecology, geology and natural resources of the Republic of Kazakhstan after its official publication;

3) within ten working days after state registration in the Ministry of Justice of the Republic of Kazakhstan of this order submission to Department of legal service of the Ministry of ecology, geology and natural resources of the Republic of Kazakhstan of data on execution of the actions provided by subitems 1) and 2) of this Item.

3. To impose control of execution of this order on the supervising vice-minister of ecology, geology and natural resources of the Republic of Kazakhstan.

4. This order becomes effective from the date of its first official publication and extends to the legal relationship which arose since July 1, 2021.

Approved by the Order of the Acting Minister of ecology, geology and natural resources of the Republic of Kazakhstan of June 29, 2021 No. 221

Rules of trade in carbon units

Chapter 1. General provisions

1. These rules of trade in carbon units (further - Rules) are developed according to Item 5 of article 299 of the Ecological code of the Republic of Kazakhstan (further - the Code) and determine procedure for the trade in carbon units performed by participants of the carbon market in the Republic of Kazakhstan.

2. In Rules the following concepts and determinations are used:

1) the secondary carbon market - the purchase and sale of carbon units at the initiative of the subjects of quoting or physical persons and legal entities participating in realization of carbon offsets performed by means of the direct transaction or through commodity exchange;

2) lot - the batch of units of carbon quota or offset units sold or delivered under the agreement and offered for sale by auction;

3) the operator of system of trade in carbon units - the subordinated organization for regulation of emissions of greenhouse gases of authorized body in the field of environmental protection providing technical and expert maintenance of state regulation and international cooperation in the field of emissions and absorption of greenhouse gases;

4) primary carbon market - sale of units of carbon quota from the corresponding category of reserve of the National plan of carbon quotas the operator of system of trade in carbon units to subjects (participants) of the carbon market on the terms of auction;

5) trading day - day of work of the organizer of the biddings during which it holds the exchange auction;

6) carbon unit - the accounting unit of carbon quota or carbon offset equal to one ton of equivalent of carbon dioxide;

7) participants of the carbon market are the subjects of quoting, physical persons and legal entities participating in realization of carbon offsets, the operator of system of trade in carbon units.

3. These rules, released in the Republic of Kazakhstan, in the carbon market of foreign state, and also trade in the carbon units released in foreign state in the carbon market of the Republic of Kazakhstan are determined by international treaties of the Republic of Kazakhstan.

Chapter 2. Procedure for trade in carbon units

4. Carbon unit is the goods permitted for turnover between subjects of the carbon market in the Republic of Kazakhstan according to article 299 of the Code.

5. Subjects of the carbon market are:

1) subjects of quoting;

2) the physical persons and legal entities participating in realization of carbon offsets;

3) operator of system of trade in carbon units.

6. The system of trade in carbon units in the Republic of Kazakhstan consists of primary and secondary carbon markets:

1) in primary carbon market the operator of system of trade in carbon units performs sale of units of carbon quota from the corresponding category of reserve of the National plan of carbon quotas to subjects of the carbon market on the terms of auction;

2) in the secondary carbon market subjects of the carbon market perform among themselves purchase and sale of carbon units by means of the direct transaction or through commodity exchange.

7. Carbon units which are cancelled, extinguished, withdrawn from circulation or are withdrawn from circulation according to the decision of authorized body in the field of environmental protection, are not object of trade according to these rules and the Code.

8. Sale and purchase of carbon units by the operator of system of trade in carbon units are performed through commodity exchange. Carbon unit is the exchange goods allowed to turnover by commodity exchange.

9. Trade in carbon units in the Republic of Kazakhstan is made by means of their write-off from the account of the seller and transfer into the account of the buyer in the state register of carbon units of the Republic of Kazakhstan.

10. The commodity exchange at which trade in carbon units is performed is determined by authorized body in the field of environmental protection on competitive basis from among the applicants capable to provide stock exchange trading with carbon units according to article 299 of the Code and these rules.

11. The procedure for trade in carbon units at commodity exchange is determined according to the order of the acting minister of national economy of the Republic of Kazakhstan of March 30, 2015 No. 280 "About approval of standard rules of stock exchange trading" (further - Standard rules).

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