KAZAKHSTAN Trends and Developments Contributed by: Arman Bigazin, Mikhail Abdulov, Olzhas Abubakirov and Lidiya Sayenko, Haller Lomax LLP
Haller Lomax LLP Office 221, AIFC 55/18 Mangilik El Avenue, C3.3.
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New Environmental Policy In 2021, a new Environmental Code was adopted in Kazakhstan, which introduced significant changes in the regulation of the country’s environmental situa- tion. The development of the new code drew on the experiences of OECD and EU countries. Key changes included: • The Introduction of the “Polluter Pays” Principle: This replaced the old “pay and pollute” principle, to reduce emissions from industrial enterprises. • Mandatory Integrated Permits: These permits require a transition to the best available techniques (BAT). The government has developed BAT refer- ence books (BREFs) based on EU BREFs for the key polluting sectors, with reasonable adjust- ment to the climatic, environmental and economic conditions of the country. To date, 20 BREFs have been issued for key sectors, including metallurgy, chemicals, energy, oil and gas, and mining and processing. • New EIA Procedure: There is a fundamental change in the regulations on environmental impact assessment. • Pollution Monitoring: Starting from 1 January 2023, major industrial enterprises (ie, operators of Category I facilities commissioned before 1 July 2021) must install automated emission monitoring systems (AEMS). These systems measure pollution directly at the source and send data automatically to the National Bank of Data on the State of the Environment and Natural Resources. To date, 77 out of 91 enterprises (about 85%) have installed AEMS, and 71 of them are connected to the data- base. 14 utility and energy companies are still in
the process of installation due to limited funding, but local authorities have created special plans to finance the systems using environmental pay- ments. • Waste: The principles of a 5R waste management hierarchy are introduced. More than four years after the Environmental Code came into effect, certain problems have emerged in practice, primarily related to inconsistencies in the provisions of subordinate legislation, much of which has not been properly adapted to meet the require- ments of the new Environmental Code. As a result, conflicts often arise between enterprises and regula- tory authorities regarding the interpretation of environ- mental requirements. Moreover, the regulatory body is attempting to revert to some questionable regulatory tools that were abolished during the environmental reform in 2021. For example, there are efforts to reintroduce indirect assessments of air pollution damage and manda- tory environmental audits conducted by private audi- tors. Such attempts threaten the effectiveness of the reform, as this approach reflects a desire to return to previous practices of replenishing the state treasury through environmental fees and fines (the “pay and pollute” principle), rather than focusing on preventing violations and ensuring environmental compliance. Nuclear and Alternative Energy The authorities in Kazakhstan are actively promot- ing the agenda for the construction of nuclear power plants (NPPs). At the initiative of the country’s presi- dent, a nationwide referendum was held on 6 October
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