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ORDER OF THE MINISTER OF ECOLOGY, GEOLOGY AND NATURAL RESOURCES OF THE REPUBLIC OF KAZAKHSTAN

of March 28, 2022 No. 91

About approval of Rules of state regulation in the sphere of emissions and absorption of greenhouse gases

According to Item 3 of article 284 of the Ecological code of the Republic of Kazakhstan and with the subitem 2) Item 3 of article 16 of the Law of the Republic of Kazakhstan "About the state statistics", PRIKAZYVAYU:

1. Approve the enclosed Rules of state regulation in the sphere of emissions and absorption of greenhouse gases.

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 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 after ten calendar days after day of its first official publication.

Minister of ecology, geology and natural resources of the Republic of Kazakhstan

S. Brekeshev

It is approved

Ministry of the industry and infrastructure development of the Republic of Kazakhstan

 

It is approved

Ministry of Finance of the Republic of Kazakhstan

 

It is approved

Bureau of national statistics of the Agency on strategic planning and reforms of the Republic of Kazakhstan

 

 

It is approved

Ministry of national economy of the Republic of Kazakhstan

 

 

It is approved

Department of Energy of the Republic of Kazakhstan

 

Approved by the Order of the Minister of ecology, geology and natural resources of the Republic of Kazakhstan of March 28, 2022 No. 91

Rules of state regulation in the sphere of emissions and absorption of greenhouse gases

Chapter 1. General provisions

1. These rules of state regulation in the sphere of emissions and absorption of greenhouse gases (further – Rules) are developed according to Item 3 of article 284 of the Ecological code of the Republic of Kazakhstan (further – the Code) and determine procedure for state regulation in the sphere of emissions and absorption of greenhouse gases.

2. In these rules the following concepts and determinations are used:

1) benchmark – specific amount of emissions of the quota greenhouse gases per unit of products;

2) monitoring of emissions of greenhouse gases – continuous or periodic assessment of amounts of emissions and removal of greenhouse gases or the accompanying data on greenhouse gases;

3) coefficient of emissions of greenhouse gases – the multiplier necessary for scoping of emissions of greenhouse gases, on the basis of data on installation activities;

4) new installation – the quota installation put into operation during the corresponding period of action of the National plan;

5) increase in capacity of installation – increase in annual amount of production, production, conversion and (or) transportation of products;

6) deceleration of power of installation – decrease in annual amount of production, production, conversion and (or) transportation of products;

7) carbon quota – the quantitative amount of the quota emissions of greenhouse gases established for the quota installation for action of the National plan of carbon quotas according to item 4 of article 290 of this Code and enlisted into the corresponding account of operator of the quota installation in the state register of carbon units;

8) carbon offset – the emission reduction of greenhouse gases and (or) increase in absorption of greenhouse gases reached as a result of implementation of activities or types of activity in any sectors of economy in the Republic of Kazakhstan directed to emission reduction of greenhouse gases and (or) increase in absorption of greenhouse gases;

9) offset units – the carbon unit applied for the purpose of calculation of carbon offset;

10) authorized body in the field of environmental protection – the central executive body performing management and cross-industry coordination in the field of environmental protection, meteorological and hydrological monitoring (further – authorized body).

11) the carbon budget – established according to the procedure, provided by the Code, maximum permissible amount for carbon balance of the Republic of Kazakhstan for carbon budgeting;

12) the State register of carbon units (further – the Register) – electronic system of accounting of the transactions connected with issuance, storage, transfer, acquisition, reservation, blocking, repayment, cancellation, retirement of carbon units.

3. State regulation in the sphere of emissions and absorption of greenhouse gases is performed with use of the following tools:

1) establishment of the carbon budget;

2) carbon quoting;

3) administration of operators of installations.

Chapter 2. Establishment of the carbon budget

4. The carbon balance of the Republic of Kazakhstan for the period of carbon budgeting shall not exceed the carbon budget established concerning such period.

5. The period of carbon budgeting constitutes five consecutive calendar years according to Item 3 of Article 286 of the Code.

6. The carbon budget determines amounts of the quota and not quoted emissions of greenhouse gases.

7. The carbon budget is developed and affirms the representative for each consecutive period of carbon budgeting not later than six months prior to the beginning of the corresponding period of carbon budgeting according to Item 5 of Article 286 of the Code.

8. The carbon budget is drafted taking into account need of observance of national deposits according to international treaties of the Republic of Kazakhstan so that:

1) for the period of carbon budgeting from 2021 to 2025 the carbon budget for 2021 was at least 1,5 percent lower than the level of carbon balance of 1990, in the years ahead – was reduced by percent 1,5 at least annually from the level of the carbon budget of previous year;

2) for the period of carbon budgeting from 2026 to 2030 the carbon budget for each calendar year was reduced by percent 1,5 at least from the level of the carbon budget of previous year;

3) for the further periods of carbon budgeting the carbon budget for each calendar year was at least than fifteen percent lower than the level of carbon balance of 1990.

Chapter 3. Carbon quoting

9. Are understood establishment by the state for carbon budgeting of quantitative restriction of total volume of the quota emissions of the greenhouse gases performed by the quota installations in the sectors of economy specified in Item 10 of these rules and distribution of carbon quotas to subjects of quoting according to these rules as carbon quoting.

The quota emissions of greenhouse gases are understood as carbon dioxide emissions.

10. The electrical power, oil and gas, mining, metallurgical and chemical industry, and also processing industry regarding production of cement, lime, plaster and brick are subject to carbon quoting (further – regulated sectors of economy).

11. Operation of the quota installation by the subject of quoting without receipt of carbon quotas according to Item 6 of Article 289 of the Code is forbidden.

The quota installation installation which amount of the quota emissions of greenhouse gases exceeds twenty thousand tons of carbon dioxide a year in regulated sectors of economy is recognized.

The subject of quoting the operator of the quota installation is recognized.

Paragraph 1. Procedure for distribution of units of carbon quota

12. Distribution of units of carbon quota among subjects of quoting is performed on the terms of their free distribution and sale by means of auction within the amounts determined by the National plan of carbon quotas (further – the National plan).

13. Distribution of units of carbon quota on installations is performed on the basis of application of benchmarks according to the List of benchmarks in the regulated sectors of economy approved by the order of the acting minister of ecology, geology and natural resources of the Republic of Kazakhstan of July 19, 2021 No. 260 (further – the List) (it is registered in the Register of state registration of regulatory legal acts of the Republic of Kazakhstan for No. 23621).

In the absence of benchmarks in the List, distribution of units of carbon quota on installations is performed on the basis of application of the basic line.

14. The total amount of the carbon quotas which are subject to distribution on installations according to Item 13 of these rules is calculated minus reserve of the National plan.

15. For the purpose of distribution of carbon quotas for the National plan for the corresponding period the authorized body no later than April 1 of the year preceding enforcement of the National plan sends to subjects of quoting inquiry of the data necessary for calculation of quotas for emissions of greenhouse gases.

The subject of quoting represents to authorized body no later than May 1 of the year preceding enforcement of the National plan, the reply to the request specified in the first part of this Item.

In case of non-presentation of data from installation, distribution of quotas for emissions of greenhouse gases is performed on the basis of data on emissions of carbon dioxide and (or) types, volumes of production for 2013 - 2015.

16. The carbon quotas for installations distributed on the basis of application of benchmarks in the National plan for one year are calculated by multiplication of average value of amount of products in the years determined by the National plan on the corresponding benchmark.

17. The carbon quotas for installations distributed on the basis of application of the basic line in the National plan for one year are calculated taking into account the average size of amounts of emissions of carbon dioxide of installations in the years determined by the National plan.

18. The carbon quotas distributed on the basis of application of benchmarks for the installations which were not performing production in the years determined by the National plan are calculated by multiplication of amount of the planned production during action of the National plan for the corresponding period on benchmark according to the List.

The amount of the planned production during action of the National plan for the corresponding period is confirmed by data of production plans, engineering designs and other manufacturing documentation of the subject of quoting.

19. The national plan affirms no later than December 15 of the year preceding the period of its action.

Paragraph 2. Procedure for forming of reserve of the National plan

20. The reserve of the National plan is created according to the carbon budget for the corresponding period and reduces the total amount of the carbon quotas which are subject to distribution on installations according to Item 13 of these rules by the size.

21. The reserve of the National plan is created for action of the National plan and determined for every year of action of the National plan.

22. The amount of reserve of the National plan is calculated based on average value of the predicted annual growth rate of gross internal national product for the corresponding period according to information of authorized body in the field of state planning according to Item 6 of Article 290 of the Code.

23. The reserve of the National plan contains categories with the carbon quotas intended for:

1) free distribution of units of carbon quota for the new quota installations put into operation during the corresponding period of action of the National plan;

2) free distribution of units of carbon quota for earlier not considered quota installations revealed during the corresponding period of action of the National plan;

3) free distribution of additional units of carbon quota in case of increase in capacity of the quota installations during the corresponding period of action of the National plan;

4) free distribution of units of carbon quota for installations of the subjects of administration turning into category of the quota installations during the corresponding period of action of the National plan;

5) sales of units of carbon quota on the terms of auction.

24. The amount of carbon quotas from reserve of the National plan is distributed by equal parts between its categories on formula:

Vi = V/n; where:

Vi – amount of carbon quotas in reserve for its one category;

V – reserve amount;

n – amount of categories of reserve.

25. If as of the year following after the period of action of the National plan in one of categories of reserve the amount of carbon quotas will make less than one heel from the provided amount of quotas for this category of reserve, the operator of system of trade in carbon units (further – the Operator of system) according to the notification of authorized body redistributes amount of quotas from the categories of reserve specified in Item 23 of these rules.

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