Valor Carbon Advocates for Renewable Energy Certificates and Climate Finance in Kazakhstan
Astana International Exchange Launches Trading of International Renewable Energy Certificates
ASTANA – The Astana International Exchange (AIX) has taken a significant step in Kazakhstan’s green finance efforts by launching the trading of International Renewable Energy Certificates (I-REC) in February. This milestone was marked with a transaction involving Valor Carbon, a London-based climate finance firm, purchasing 1,000 I-RECs from Samruk Green Energy, a state-owned company.
In an interview with The Astana Times, Valor Carbon shared the reasoning behind this purchase, its outlook on carbon markets, and long-term plans for Kazakhstan and Central Asia. The company, based in London, has offices in both Astana and Bishkek.
Valor Carbon CEO Rocco Huesch emphasized the importance of moving carbon market deals from private transactions to exchanges for better transparency and liquidity. The trading of I-RECs on AIX sets a precedent for other environmental commodities to be traded in Kazakhstan, according to Regional Director Nurzhan Aspandiyar.
Kazakhstan’s Emissions Trading System (ETS) covers 47% of emissions from 135 companies in the energy, mining, and manufacturing sectors, all of which are currently allocated allowances for free. Valor Carbon acknowledges the need for reform and improvements to the ETS, balancing environmental goals with economic growth.
One area for potential growth in Kazakhstan’s carbon market is the role of carbon credits. Valor Carbon highlighted the importance of domestic projects producing domestic carbon credits and suggested allowing these credits into the ETS for revenue flow.
Article 6 of the Paris Agreement, which allows countries to transfer carbon credits earned from reducing greenhouse gas emissions, was also discussed. Valor Carbon sees the carbon market as a strategic entry point for Kazakhstan and Central Asia to tap into global climate finance flows.
The company is ready to support Kazakhstan in aligning its systems with global standards and focusing on projects that deliver measurable carbon removal outcomes, such as nature-based solutions for carbon removal. Valor Carbon aims to contribute to Kazakhstan’s green finance efforts and attract climate finance for environmental projects in the region.
