Emissions Benchmarking for the Cement Industry in Kazakhstan

With significant economic growth expected in the construction sector, emissions from the cement industry are expected to increase, compromising Kazakhstan’s commitment to reduce its emissions by 15% below the 1990 level by 2020. Climate Focus, together with Greenstream, Eneco and Whitehopleman, have developed a low-carbon development roadmap that describes a range of technologies that can greatly reduce the carbon impact of emissions in the cement sector and policies which can incentivize their adoption.

The different technological options were assessed at plant level. An economic analysis of their financial returns has helped the government to create policy incentives aimed at attracting investments from the cement industry. The cornerstone of the climate change policy in Kazakhstan is its emissions trading scheme. Currently suspended, the scheme will resume operations in 2018. During its first commitment period, the allocation of emission allowances was based on historical emissions (“grandfathering”). The policy roadmap recommended shifting to benchmarking as the preferred underlying allocation principle.