Proceedings of 3rd European Business Research Conference
4 - 5 September 2014, Sheraton Roma, Rome, Italy, ISBN: 978-1-922069-59-7
Investments in Environmental Protection under Conditions of A
"Green Economy" (Comparative Legal Analysis on the Example
of Kazakhstan)
Yerkinbayeva Lazzat* and Nurmukhankyzy Daniya**
This article discusses some of the legal issues of RK investment policy in the
environmental protection and rational use of natural resources under the
conditions of transition to a “green economy”, taking into account
international law norms. Ecological and legal problems of supporting the
renewable energy sources are considered in details, showing the author's
point of view on the issue of correlation between international and national,
environmental, investment and energy branches of law. The article provides
a detailed analysis of national legislation and practice in the studied sphere
and proposes concrete ways for their improvement.
JEL Codes: Investment Law
1. Introduction
Considerable achievements have been made in measuring progress towards a green
economy in the field of sustainable development indicators over the past two decades.
Series of international initiatives to monitor indicators of stability were created. However,
serious problems, associated with development of basic indicators and ways of measuring
progress towards the “green economy”, are left for national governments. Different needs
and different ways of the countries to move towards the green economy require flexibility;
at the same time, development and coordination of permitting conditions at the international
level requires some degree of standardization and comparability. The green economy is,
first of all, a change in the direction of economic growth. Currently, growth is usually formed
by investments in activities, which have a high level of emissions, severe environmental
pollution, waste generation, resource intensity and destruction of ecosystems. The green
economy needs to shift investments into such activities, which are characterized by low
carbon emissions, cleanliness, waste minimization, effective use of resources and
ecosystem improvement. Consequently, the main indicators of economic transformation
include changes, and, over time, resulting increase in production of environmentally friendly
goods and services and related employment.
2. Literature Review
The legal science is urged to provide research of a complex of problems to legal
investment activity as a whole, taking into account the accumulated knowledge and
experience, and to offer effective ways of their solution, taking into account participants’
interests of these relationships at a certain stage of activities of the state and society. Some
questions of investment law were considered in the scientific works of Moroz S.P. [see in
details Thesis on competition of an academic degree Doctor of Law “Theoretical problems
*
Doctor of Law Yerkinbayeva Lazzat, Faculty of Law, Zhetysu State University named after I.Zhansugurov,
Kazakhstan, email: daniyafmo@bk.ru
**
PhD student Nurmukhankyzy Daniya, Faculty of Law, Zhetysu State University named after I.Zhansugurov,
Kazakhstan
Proceedings of 3rd European Business Research Conference
4 - 5 September 2014, Sheraton Roma, Rome, Italy, ISBN: 978-1-922069-59-7
of investment law (civil law aspect)], Baydeldinov D.L. [To a question of correlation
between the ecological and investment laws on the example of Kazakhstan legislation\"A
ratio of the law of foreign investments and ecological law: Collection of articles" (edited by
A. Aliyev, S. Krupko, A. Trunk) (“Norm”, 2012)].
Noting the contribution of the above mentioned developments in the field of legal science, it
is still possible to state the fact of absence of comprehensive work so far in the special
study of legal problems in supporting investment activities within transition to the green
economy in Kazakhstan. It is necessary to pay attention to the fact that Kazakhstan legal
model of supporting alternative power engineering causes researching and practical
interest and requires theoretical interpretation [see in details Shchepanskiy I.S. Ecological
and legal problems of ensuring energy security in Russia: abstract of dissertation on
competition of an academic degree Candidate of Law, M., 2013; Bekisheva S.D. Use of
renewables as the direction of ecological business in the Republic of
Kazakhstan/Spirituality and Economy: problems of human capital formation: Materials of
international scientific theoretical conference, March 15, 2010 - Karaganda:
Kazpotrebsoyuz KEU, 2010. pp. 454- 458].
3.
Methodology
The following data and research methods were used to carry out the paper: modern
knowledge of a state and law, studies of nature and society interacting, dialectic method as
a main way of objective and comprehensive knowledge of reality, as well as historical and
formally logical methods, including methods of deduction and induction, analysis and
synthesis. Among special research methods there are logical, legal systemic, functional,
methodological methods, comparative legal methodology, and also methods of legal
sociology.
Investments in environmental protection under conditions of a
"green economy"
4.
The decree of the President of the Republic of Kazakhstan, dated May 30, 2013,
approved the Concept on transition to the green economy, which establish the
foundation for deep system transformations for the purpose of transition to the “green
economy” by means of increasing welfare, life quality of the population of Kazakhstan
and entry of the country into 30 most developed countries of the world, minimizing
degradation of natural resources and loading on environment.
The accepted Strategy “Kazakhstan-2050”: new political course of the established
state" sets clear guidelines on promoting sustainable and effective economic model,
based on the country's transition to a "green" way of development. The “green
economy" is defined as economy with a high level of life quality of the population,
careful and rational use of natural resources for the benefit of present and future
generations and functions according to the international ecological commitments,
accepted by the country, including Rio de Janeiro Principles, Agenda for the XXI
century, Johannesburg Plan and Millennium Declaration.
Speaking about positive influence of transition to the "green economy", it should be
noted that this strategy will have effect on creating material benefits, employment,
eradication of poverty and long-term economic prosperity.
In solving the above mentioned environmental problems, in our opinions, there has to
be the purposeful policy, allowing to make attractive investing resources into
environmental protection and rational use of natural resources. This circumstance is
Proceedings of 3rd European Business Research Conference
4 - 5 September 2014, Sheraton Roma, Rome, Italy, ISBN: 978-1-922069-59-7
confirmed by the point 1 of the Article 11 in the RK Law “On Investments”, in which it is
told that: "The purpose of state investment supporting is creation of favorable
investment climate for developing economy and stimulating investments into creation of
the new ones, expansion and updating of operating productions with application of
modern technologies, professional development of Kazakhstan staff, and also
environmental protection".
The analysis of the RK law “On Investments” shows that environmental protection
investing is one of the priority directions, but, at the same time, it does not contain
mechanisms of this norm implementing; therefore, regulation of these procedures is
carried out within the ecological legislation, the basic regulatory legal act of which is
Ecological Code of RK (RK EC), adopted on January 9, 2007.
In the plan of measures on environmental protection a user of nature should provide the
resources, allocated for implementing a complex of technological, technical,
organizational, social and economic measures, directed on environmental protection
and improvement of its quality. As we know, a user of nature pays for environmental
pollution and use of natural resources. In this case he also pays, but for what? As this
duty to pay is regulated by the RK EC, it is difficult to explain. In the law, invalid
nowadays, “On Environmental Protection”, dated July 15, 1997, this type of payment
was, and it was called a “payment for protection and reproduction of natural resources”.
In the Article 30 of this law it was specified that “as compensation of the budgetary
expenses for implementing protection and reproduction of natural resources payments
are raised from users of nature according to the Tax Code of the Republic of
Kazakhstan”. Otherwise stated, a legislator accurately explained its position that the
state did not intend to invest money in environmental protection on a gratuitous basis,
and users of nature, i.e. we are, are obliged to compensate these expenses to it.
Currently, this norm is absent; moreover, a legislator does not burden himself with this
question, imputing the responsibility to carry out environmental protection measures by
consumers themselves at their own expenses, without stating the amounts of financing.
Previously, this was done in the framework of tax legislation, and now the Ministry of
Environmental Protection of the Republic of Kazakhstan and its territorial bodies shall
define independently the amounts and terms of financing. How is correct this legislative
trick and setting?
Experience of the developed countries shows that the priority of state investments and
expenses in the areas, stimulating “gardening” of economic sectors, and subsidies,
provided in the interests of society or having a positive outer effect, can be strong
incentives for transition to "green" economy. "Green" subsidies, such as measures for
supporting prices, tax incentives, direct grants and guarantees on loans, can be applied
for various purposes: (a) for taking measures fast in order to avoid freezing of means in
“unstable” assets and systems or losses of the valuable natural capital, on which
existence of people depends; (b) for ensuring creation of "green" infrastructure and
introduction of "green" technologies, which, especially, provide essential financial or
non-financial advantages, hard-hitting for private companies; (c) for support of being in
an initial stage of development of "green" branches within strategy of accumulating
comparative advantages and stimulating long-term employment and growth. Tax
incentives can promote investments into “green” economy and mobilization of the
private capital. Similar incentives can be focused both on consumption and production
of goods or rendering services. For example, a number of municipalities in India
introduced discounts for the property tax for users of solar water heaters.
Other type of tax privileges, which is quite often applied for the purpose of stimulating
energy production from renewable sources, is the accelerated depreciation. It allows an
investor to amortize quicker the cost of fixed assets falling, and by that to reduce
Proceedings of 3rd European Business Research Conference
4 - 5 September 2014, Sheraton Roma, Rome, Italy, ISBN: 978-1-922069-59-7
taxable profit. In Mexico the accelerated depreciation is allowed to investors, making
investments in infrastructure, not having negative impact on ecology, since 2005.
Introducing the production of technologies of energy from renewable sources is
successfully promoted by the measures for supporting prices and methods of electric
power net - accounting. Measures for supporting prices, usually by granting subsidies or
price control, guarantee market price of certain goods or services and provide long-term
definiteness, necessary for private investors. The most widespread and known among
these measures, as it is noted in the report key conclusions, is application of stimulating
tariffs for introducing and improving production of technologies of the electric power
from renewable sources.
Many countries also use the method of net - accounting for stimulating the small-scale power
generation, based on the use of renewable sources. When using this method, a consumer
receives a deduction from the future accounts for electric power if the quantity of electric
power, arriving in a national power system from the generator of a consumer, working at
renewable raw materials, exceeds the quantity of energy, which is taken away by a consumer
from the system. Net - accounting is widespread in the USA, and also it is introduced in
Mexico and Thailand.
Public expenditures have to be limited in time. Once entered subsidies can be difficult to
abolish because recipients are financially interested in lobbying their preservation. As a rule,
a state tries to minimize its expenses and, developing program of granting subsidies,
considers various control methods.
For example, sometimes conditions of the program are regularly reconsidered, and the
coordinated adjustments are carried out, restrictions on the general expenses are sometimes
set, and it is defined accurately when implementation of the program comes to an end. The
analysis of subsidizing the energy production from renewable sources, carried out by the
International Power Agency, showed that in a situation when a state wants to increase
private investments into this or that sector, it is important that supporting is stable and
predictable, gives definiteness to investors and can be cancelled for stimulating innovations
in due time.
In the “green” economy the growth of income and employment is provided by state and
private investments, reducing emissions of carbon and pollution, increasing efficiency of the
use of energy and resources and preventing biodiversity loss. These investments need to be
catalyzed and supported by means of target public expenditures, reforms in the field of policy
and regulation change. Such way of development has to keep, increase and, where it is
necessary, restore the natural capital as a major economic asset and source of public
benefits, especially for poor segments of the population, income sources and security of
whom depend on nature.
Recently the governments of many countries in the world started to use active economic
policy by means of introducing program packages of economic recovery. It is rather heavy to
compare “green” components of these programs of restoration because there is no
consensus, concerning what elements of programs can really be referred to “green”. Creation
of the thought-over system of economy regulation can define the rights and create incentives,
which, in turn, intensify transition to the “green” economy, and also to eliminate existing
barriers to “green” investment. By means of the regulating system it is possible to regulate
the most harmful kinds of activities, incompatible with sustainable development, or establish
minimum standards or completely forbid some kinds of activities. Besides, appropriate
regulating system will reduce risks of changing national legislation, which will promote
increase of investors’ trust to the markets. Positive addition to the state standard and legal
system can be self-regulation of branches and voluntary agreements between the
government and companies. Within voluntary agreements companies assume commitments
Proceedings of 3rd European Business Research Conference
4 - 5 September 2014, Sheraton Roma, Rome, Italy, ISBN: 978-1-922069-59-7
for increasing efficiency of using energy resources and introducing energy saving projects in
production.
In practice of the EU there are two approaches to implement voluntary agreements in the
sphere of improving energy efficiency: Obligatory approach is used in the countries for the
purpose of justifying tax exemption on CO2 emissions of power-intensive production
branches; Voluntary approach is applied in the countries where there are programs for
carrying out an energy audit of enterprises, which, in turn, gives the chance to enterprises to
create more effective projects for achieving the objectives in the energy saving sphere. It is
necessary to distinguish from advantages of voluntary agreements for a company: reduction
of production expenses, receiving subsidies or reduction of tax pressure, obtaining image of
the company which cares of environment. At the same time, conclusion of voluntary
agreements gives the chance, considering features of each company, to choose the
purposes and ways of energy saving and terms of realization of them. Despite efficiency of
market tools, in some situations it is necessary to use commands and administrative
measures, which sometimes happen easier to introduce. In short-term perspective it is
simpler to establish new standards of efficiency and to eliminate obstacles when planning
and obtaining permissions for projects in the sphere of renewables than to create the market
of carbon emissions and to cancel subsidies for purchasing fossil fuel. Norms and
requirement standards, which can be shown to a design or concrete properties of production
or to their performance data, can become effective instruments of achieving the objectives in
the field of ecology and formation of the markets for steady goods and services. In particular,
obligatory standards for observance can be effective for achieving set results.
Introduction or improvement of the ecological legislation is an important area, in which
governments can gain benefit for themselves if they think of carrying out internal reform in
addition to fiscal and other measures, aimed at transition to the "green" economy. The
national legislation in the field of environmental protection, transport, construction and power
supply, and others can create strong market incentives and encourage investments into
"green" economy.
Reduction of deforestation and restoration of the woods are economically expedient, and also
they positively influence agriculture and living standard of country people. There are
economic mechanisms, such as programs of producing the certified wood out of rain forests,
introduction of payments for ecosystem services, sharing programs. In this context changes
in the legislation and public administration are required to pass to steady forestry. The
"green" agriculture is characterized by transition of high-commodity and subsistence
economy to the use of ecologically safe methods of work, such as effective use of water,
wide use of organic and natural fertilizers, optimum processing of soil. In this sphere changes
of policy have to be directed, first of all, on reduction and, eventually, termination of granting
subsidies, which harm ecology, and also on carrying out such reforms of pricing and
regulation, as a result of which the expenses, connected with deterioration of ecology, would
be included into prices of foodstuff and raw materials is.
Growing shortage of water can be reduced by means of the policy, directed on increase in
investments into improving water supplies and increasing the efficiency of water use.
Granting fresh water in necessary amounts and of rather high quality is a major ecosystem
service. Without transition to the “green” economy there will be a big gap between world
water supplies and water consumption. The solution of this problem is possible only by
means of investment in infrastructure and reforms in the field of water policy, which is by
means of “gardening” of water sector. In this regard, adoption of the program, dealing with
priority directions of investment activities in environmental protection and rational use of
natural resources is necessary. These reforms can be directed on improving institutional
mechanisms, and also systems of providing the assistance and assignment, on more active
collection of payment for ecosystem services, and also on changes of financial schemes of a
Proceedings of 3rd European Business Research Conference
4 - 5 September 2014, Sheraton Roma, Rome, Italy, ISBN: 978-1-922069-59-7
payment for water supplies. It confirms once again that it is necessary to register accurately
investments in green economy at the legislative level.
4.1 Ecological and legal problems of alternative energy in the Republic of
Kazakhstan: experience and perspectives
In solving the problem of reducing greenhouse gas emissions, renewable energy sources
play a significant role, where the EU policy demonstrates its leadership. The directive of the
European Union on renewable power (RED 2009/28/EC) set the task to reduce consumption
of primary energy resources on 20% by 2020. The Republic of Kazakhstan, as the owner of
large stocks of hydrocarbonic raw materials, did not stand aside from the EU initiatives, and
keeps up-to-date developing production of alternative types of energy. Strategy of
Kazakhstan 2050 outlined Kazakhstan's commitments in this field, namely to provide not less
than half of total energy consumption in the form of alternative and renewable energy.
Transition to low-carbon production can promote economic growth thanks to innovations and
investments into “pure” technologies and low-carbon power. Within the plan of the EU to
reduce harmful effects for the atmosphere the role of alternative power engineering will
increase every year. To achieve this transition of the EU it is required to invest annually €270
billion or 1,5% of gross domestic product on the average within several years.
The directive on renewable power provides a number of the obligatory national purposes on
a share of renewable power. The first is 10% of a biofuel share by 2020 (Articles 3 and 5)
and creation of a steady mode for biofuel (Article 15-18). The second demands existence of
the national plans of actions in scales of the country (Article 4). The third establishes
standardization to “origin guarantee” (certificate that the electricity or heats are received from
a renewable source) (Articles 6, 7, 8 and 10). The fourth allows transferring origin guarantees
of member countries for flexibility in achieving their purposes and development of cheaper
renewable sources beyond the country (Article 9). The fifth suggests to reform administrative
and regulating restrictions for growth of renewable power (Article 12). The sixth, this is
strengthening of providing information and trainings in the field of renewable power (Article
13). The seventh, it is creating favorable conditions for access of renewables to transferring
power supply networks (Article 14).
As we see, new tendencies of ecological and power policy of the EU required the review of
Kazakhstan power policy principles and maintenance of the relations with the EU. Since 1996
Kazakhstan began preparing for accession for the Kyoto Protocol; on March 26, 2009
Kazakhstan ratified it, within which measures for creating national system of monitoring and
reporting on greenhouse gas emissions, state register of carbon units, national plan of quota
distribution, and also creation of the market of trade by quotas are taken.
Kazakhstan was included in the list of the countries of the Kyoto Protocol Appendix B with
quantitative obligations for reducing emissions of greenhouse gases on 5% of 1990 basic
level for the second test period, which has begun since January 1, 2013, lasts 8 years and
will end on December 31, 2020. At the same time, according to articles 20 and 21 of the
Kyoto Protocol, this amendment comes into force for those Parties which accepted it, for the
ninetieth day from the date of receiving the document by Depositary on acceptance, at least,
from three quarters of the Parties of the present Protocol. The amendment comes into force
for those countries which ratified it.
Now Kazakhstan starts implementation of “green” development policy, which has received
the justification in the Concept of RK of transition to the green economy.
The need of developing new industries and “green clusters” that will allow to lower an
inequality in development of regions, and to use their potential in renewable power,
agriculture, water resources management, recycling and other sectors.
Proceedings of 3rd European Business Research Conference
4 - 5 September 2014, Sheraton Roma, Rome, Italy, ISBN: 978-1-922069-59-7
According to this program RK Government plans to develop renewable power through
construction of wind and solar power stations: with achievement of 3% share of wind power
station (WPS) and solar power station (SPS) in electric power total production by 2020; with
achievement of 10% share of WPS and SPS in electric power total production by 2030;
transition to full-scale introduction of renewable energy sources (RES) after achievement of
acceptable level of competitiveness by them in comparison with traditional sources, which is
expected during the period between 2020 and 2030; achievement of 50% share of alternative
sources and renewables, including wind, solar, hydro-and nuclear power plants in electric
power total production.
After signing of the Kyoto Protocol, Kazakhstan started creation of a standard basis for
supporting the renewables.
Positive result of state regulation in this area is creating favorable conditions for construction
and operation of objects on the use of renewables and stimulating production of electric and
(or) thermal energy with the use of renewables. Along with it, in Kazakhstan legal entities,
who are carrying out design, construction and operation of objects on use of renewables, are
provided with investment preferences, and creating favorable conditions is carried out for
effective integration of objects on the use of renewables in unified electrical power, thermal
system and market of electric and thermal energy. Following the policy of "green"
development, in 2013 Kazakhstan introduced serious innovations in the Ecological Code
[Republic of Kazakhstan. Ecological Code: 2007. //adilet.zan.kz]. We are talking, first of all,
about the system of state regulation in the sphere of emissions and absorption of greenhouse
gases. It includes, firstly, distribution of quotas to nature users for greenhouse gas emissions;
secondly, establishment of market mechanisms to reduce emissions and absorption of
greenhouse gases; thirdly, administration of nature users.
Statistics shows that by the volume of greenhouse gas emissions in the atmosphere is the
main polluter is the country's energy sector. Environmental legislation of the Republic of
Kazakhstan heads towards the toughening of environmental requirements in this field. In
particular, activity implementation without receiving quotas for greenhouse gas emissions is
forbidden to nature users, carrying out activity in oil and gas, power, mining and metallurgical,
chemical branches of economy, in agriculture and transport, greenhouse gas emissions of
which exceed the equivalent of twenty thousand tons of carbon dioxide a year. Every
company should have the certificate on greenhouse gas emissions, which is issued by the
Ministry of Environment protection and water resources of the Republic of Kazakhstan. This
is the document which sets the volume of allowed greenhouse gas emissions, issued to the
company in order to comply with its commitments to reduce greenhouse gas emissions and
participation in the trading of carbon units.
As the main way of reducing the emissions more than 20%, Emissions Trade System was
offered in the EU, allowing “to urge” energy market participants by the market methods to
introduce innovations and widely use possibilities of alternative power engineering.
Introduction of taxes on CO2 emissions in the sectors, which have not been included in the
Emissions Trade System, represents a simple market tool for stimulating the decrease in
emissions at national or all-European level. Adaptation of fuel or products taxation system to
repel the CO2 component is one of the options to change power policy. Some member states
have already applied this system, for example, in using bigger potential of reduction in the
systems of heating, decrease in intensity of carbon emissions and increase of transport
efficiency.
Kazakhstan successfully adopts positive European experience and introduces the trade
market in quotas for greenhouse gas emissions and other market mechanisms, directed on
reducing greenhouse emissions. For example, National Plan of distributing quotas for
greenhouse gas emissions for 2014-2015 is, in which the total amount of quotas for
Proceedings of 3rd European Business Research Conference
4 - 5 September 2014, Sheraton Roma, Rome, Italy, ISBN: 978-1-922069-59-7
greenhouse gas emissions economic branches and volumes of quotas for nature users are
established.
One more innovation is investing projects within the mechanism of ecological (green)
investments. It represents investment of the means, received from unit transfer of established
quantity, management of a reserve of the volume quotas within national plan distribution of
quotas for greenhouse gas emissions in projects, programs and actions, directed on reducing
emissions or increase in absorbing greenhouse gases.
As we see, the solution of many environmental problems of the energy sector is carried out
by means of ecological requirements and introducing market economic instruments of
regulation. The ecological legislation has serious impact on development of power branch.
First, it concretizes ecological requirements to activity of the power sector of economy.
Secondly, establishing rigid requirements of ecological character, it “urges on” to develop
environmentally friendly technologies in power branch and introduce innovative solutions in
technological process of production. Thirdly, implementation of ecological requirements in
power branch compels to use market mechanisms of regulation.
“In the short term absence of viable power alternative can affect extremely negatively on a
global scale: fast exhaustion of traditional energy carriers (according to separate forecasts,
oil can already end by 2050) and toughening of ecological requirements will lead to rise in
prices of specific capital investments into construction of traditional generating capacities,
etc. As the result, traditional power will become not just very expensive, but it will not be
affordable even for the richest countries".
Along with it, it should be noted that many provisions of the law "On supporting the use of
renewables" were justified at the initial stage, but now to make "RES sector more attractive to
potential investors, RK government prepared the bill, providing introduction of the fixed tariffs
system for delivering energy, made by the RES objects. Establishment of the fixed tariffs will
be as a guarantee for investors on recoverability of invested funds, help to clear up the size
of necessary capital investments for separate objects and types of RES. Advantages of such
system: equal conditions for all investors, necessary for making decision on investing,
indicators of profitability clearer for bank structures when financing projects on RES in the
view of fixing a tariff for the payback period, which is defined by the law. Besides, there is a
decrease in risk of corruption actions, more significant social and economic validity and
validity of the projects, submitted to the relevant state agencies for tariff statement, etc.”
In 2013, taking into account the opinions of business community, the law "On supporting the
use of renewables" was seriously amended. The following changes should be noted, in our
opinion: introduction of a fixed tariff for the delivery of energy, i.e. the tariff, at which the
estimated financial center performs centralized purchase and sale of electric energy,
produced by the units of renewable energy sources and delivered to electric network of the
unified power system of the Republic of Kazakhstan.
These rules apply only to objects on the use of renewable energy, put into operation after the
introduction of these changes, as well as on reconstruction with replacement of the existing
main generating equipment. The cost of the new equipment input on the reconstructed object
must be at least fifty percent of the balance cost of the reconstruction project at the beginning
of works on reconstructing this object. The carrying values of the reconstruction object at the
beginning of work on its reconstruction should be confirmed by an audit institution.
From the aforesaid it is clear that Kazakhstan is on the path of searching the optimum ways,
including legal, solutions of problems in effective supporting renewables.
In solving the identified problems, a lot of things depend on international cooperation.
Kazakhstan ratified the Charter of the International Renewable Energy Agency (IRENA) .
This organization is the expert center in the field of renewable energy technologies, providing
necessary assistance, offers experience for development and practical introduction of policy
Proceedings of 3rd European Business Research Conference
4 - 5 September 2014, Sheraton Roma, Rome, Italy, ISBN: 978-1-922069-59-7
in the field of using renewable energy, and helps the states to gain benefit from effective
development, exchange of experience and technologies.
Consolidation of experience and knowledge of the world community in the solution of
problems of alternative power engineering represents interesting work, and will have, in our
opinion, a big demand and popularity. “Kazakhstan as a new market, causes considerable
interest in potential investors. There are not so many existing renewable energy objects. As
an example, we can call the recently constructed in Zhambyl region Kordai wind power plant
with an expected capacity of up to 10 MW or commissioned solar power plant with capacity
of over 52 kW in Almaty region. There are still a number of projects (about 20) with different
stage of coordination of tariffs, technical and economic justification, land use permits, etc.
Besides, Kazakhstan experience in compiling the only on the post-Soviet space wind atlas is
of great interest one of the main results of large-scale joint project of the RK government and
UNDP on wind power (www.windenergy.kz). "
5. Summary and Conclusions
As we see, international law had serious impact on development of the national legislation of
RK in the studied sphere. Considering that modern problems of ensuring ecological and
energy security go beyond national borders more actively, experience of the EU has
invaluable importance for developing legal regulation of ecological and other relations under
the conditions of transition to the “green” economy. As the conducted analysis shows, the
national legislation of RK, including ecological and tax laws, laws on supporting the use of
renewables, on investments, requires further improvement. Effective involvement of
investments into all the spheres of nature protection activities will allow to make the market
active in this sphere, introducing many innovative solutions in technological process of
production. Many European countries passed through this way.
Unfortunately, the existing investment legislation does not contain special legal instruments
of supporting "green" economy, and their existence would allow to make an investment field
more attractive and procedures of its realization transparent as this sphere demands a
flexible system of preferences, as well as taxes, duties and dues. It is necessary to adopt the
program, dealing with the priority directions of investment activities in the environmental
protection and rational use of natural resources; thus, it will allow investors to see better this
sector of investments, as primary one.
In spite of the fact that in the Republic of Kazakhstan the Law “On supporting the use of
renewables” works, we believe that it is necessary to make amendments in it. In particular, it
is offered to regulate the principles and priorities of supporting, rights and duties of
participants, forms and directions of international cooperation, economic mechanism of
regulation and legal responsibility.
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