In general, the Emissions Trading System is a market-based policy tool, which is aimed at creating incentives for carbon dioxide (CO2) emissions reduction. Different countries operate ETSs to encourage companies to implement decarbonisation projects. 
Kazakhstan’s ETS (KAZ ETS) was launched in 2013. As of 2024, KAZ ETS covers 135 companies and 212 installations. The companies covered are major producers of C02 emissions (emitting more than 20 000 tonnes of CO2 emissions per year). 
Industries covered: power sector and centralised heating, extractive industries and manufacturing (including oil and gas, mining, metallurgy, chemicals industry), processing industry (production of building materials: cement, lime, gypsum, and brick).
KAZ ETS is regulated by the Ministry of Ecology and Natural Resources and operated by JSC “Zhassyl Damu” (subsidiary of the MENR).

In Kazakhstan, there is a national plan, which defines the general amount C02 emissions quotas (carbon quotas) for a 5-year period. Based on the national plan, carbon quotas are distributed to the companies, with consideration of their production level and product type. Currently, in Kazakhstan, 100% of allowances are allocated on a free basis. In other countries, paid allocation of carbon quotas on an auction basis is a general practice. Paid allocation of carbon quotas incentivises companies to seek ways to reduce their CO2 emissions. 
How the market works: 
Companies receive/buy carbon quotas from the operator. The initial allocation of quotas at the beginning of the period is a primary market. Then, if companies need more quotas, they could buy the required amount on the secondary market. Those companies that have an excess of quotas (for example, they implemented some emissions reduction projects on their facilities, which reduced the emissions level) could sell excess quotas on the secondary market.

Currently, KAZ ETS is in operation. However, there have been no exchange trading activities since 2023 due to legislative constraints, so only OTC transactions maintain the ETS market.
This year, regulatory changes are expected, including those that provide opportunities for stock exchanges to offer trading services for ETS.  This will help relaunch exchange trading activities within the ETS.
Apart from that, since 2023, AIFC has been working on establishing a platform for environmental instruments trading. We have the necessary regulations in place, AIX Business rules have been amended accordingly, so that AIX can provide its platform for ETS exchange trading starting from 2026.

Yes, such an opportunity exists. Companies can implement offset projects – projects that reduce or absorb C02 emissions.  
Based on Kazakhstan’s regulations, domestic offset projects can be implemented in all economic sectors outside the scope of the ETS. Offset projects that verify CO2 emissions absorption/reduction can receive carbon offset credits, which can be sold within the ETS system. Compliance entities (135 enterprises) can buy carbon offsets to meet their compliance obligations.

As you may know, in February 2025, AIFC launched the trading of International Renewable Energy Certificates (I-REC) on the AIFC Carbon Platform.
AIFC is planning to expand the range of environmental instruments to be traded by including ETS carbon quotas, VCM carbon credits, etc. 
Considering the growing trend and demand for ESG-reporting and climate action, companies can buy environmental instruments (I-RECs, VCM carbon credits, etc.) to cover their Scope 1, 2, 3 emissions. This will enhance companies’ ESG reporting and help them to achieve sustainability goals and carbon neutrality targets.
More details in the Report “Emissions Trading Systems and Voluntary Carbon Market: global overview and prospects for Kazakhstan”