Enhancing the Emissions Trading System for Kazakhstan’s Decarbonization

Kazakhstan, a fossil-fuel-dependent economy, faces growing pressure to reduce greenhouse gas emissions while maintaining industrial competitiveness. Carbon Capture, Utilization, and Storage (CCS/CCUS) technologies offer a viable pathway for decarbonizing hard-to-abate sectors, particularly in power generation, metallurgy, and oil and gas processing. This paper provides a comprehensive review of the state of CCS/CCUS technologies globally and examines their applicability within Kazakhstan. The study also explores long-term CO2 storage mechanisms and monitoring frameworks, with attention to carbon leakage risks and the importance of addressing methane emissions. A critical part of the analysis is dedicated to Kazakhstan’s Emissions Trading System, identifying its current limitations such as low carbon prices, and limited sectoral coverage, and outlining practical reforms to enhance its role in supporting CCS/CCUS and broader decarbonization efforts. The integration of CCS/CCUS with a strengthened ETS, combined with access to international climate finance instruments and voluntary carbon markets, is proposed as a key strategy for Kazakhstan’s transition to a low-carbon economy. By linking engineering innovation with targeted policy interventions, this study offers a dual-perspective contribution. It not only provides technical insights into CCS/CCUS technologies but also presents policy recommendations that are specifically tailored to Kazakhstan’s context. The findings reinforce the role of CCS/CCUS as a crucial component of national climate strategy and industrial transformation.