PROJECT TITLE
BACKGROUND
Nationally Appropriate Mitigation Actions for Low-carbon Urban Development
Kazakhstan ratified UNFCCC in 1995 as non-Annex I party and already in 1999 committed
to join industrialized nations in their effort to limit GHG emissions and accept a binding and
quantified emission limitation of 100% over a 1992 baseline. Further, in 2010 Kazakhstan
announced and communicated to the Parties its additional voluntary commitments to reduce
GHG emissions by 15% by 2020 and by 25% by 2050. As part of its national efforts to meet
voluntary GHG emission reduction obligation, the Government of Kazakhstan introduced as
of January 2013 the domestic emission trading scheme (ETS). Under ETS, all industrial
entities with annual emissions above 20,000 tCO2 will be subject to mandatory emission
reduction targets, which they can meet either by implementing mitigation measures
internally or by buying the respective amount of emission reduction certificates domestically
or internationally. Because of the substantial internal demand that it will create, ETS is seen
as a major opportunity to stimulate investment in cost-effective emission reduction actions
nation-wide. However, many small-scale, but cumulatively significant opportunities for
urban emission reductions will remain outside of ETS scope and won’t be able to benefit
from the demand that it will create.
With this project, the Government of Kazakhstan is requesting GEF support to help identify,
develop and leverage financing for Nationally Appropriate Mitigation Actions (NAMAs) in
its urban sector. Urban GHG emission reductions are prioritized in this proposal because a)
it is the sector with significant and cost-effective abatement potential; b) it is the only sector
not explicitly covered by domestic ETS; and c) it is the sector where reduction of GHG
emissions will directly result in tangible socio-economic and local environmental benefits.
OBJECTIVE
CONTRACTING
AUTHORITY
BUDGET
PROJECT START
COMPLETION
DATE
IMPLEMENTING
COPMANY
BENEFICIARIES
ACTIVITIES
To support the government of Kazakhstan in the development and implementation of
National Appropriate Mitigation Actions (NAMAs) in urban sector to achieve voluntary
national GHG emission reduction target
GEF
5,930,000 USD (GEF), 60,000,000 (cofinancing)
2013
2018
UNDP
Kazakhstan
Component 1: National GHG Inventory, Abatement Potential and Emission Reduction
Target
Component 2: Institutional framework for private investment in low-carbon urban
development
Component 3: Financial framework for private investment in low-carbon urban development
Component 4: Pilot investment in urban mitigation actions
Component 5: Domestic Emission Trading Scheme
EXPECTED
OUTCOME
Component 1 will enable cities to undertake their urban GHG inventories, assess abatement
potential and establish relevant city-wide emission reduction targets
Component 2 will put in place enabling institutional framework for implementation
urban mitigation actions based on public-private partnership model
Component 3 will establish revolving financing scheme under the National Fund for
Urban Modernization to provide start-up financing for selected urban NAMAs
Component 4 will identify and finance pilot urban mitigation actions in one of Astana’s
district
OUTPUTS
Component 5 will establish monitoring, reporting and verification (MRV) system to
track the achievement of urban emission reduction targets and link urban NAMAs with
domestic ETS
Component 1:
1.1 Urban GHG Inventories and baseline in 15 cities
1.2 Abatement potential and cost curves for 15 cities (including for pilot district in Astana
to be implemented under Component 4)
1.3.Priority urban NAMAs identified, fact-sheets prepared and discussed with main
stakeholders
1.4. Urban GHG reduction targets established and officially adopted
1.5 National quality assurance system and data-base for urban inventories and NAMAs set
up
Component 2:
2.1. 15 Municipal Management Companies (MMCs) established based on PPP model
2.2. Business plans developed and adopted
2.3. Portfolio of bankable emission reduction projects developed based on priority urban
NAMAs
2.4. Public contracts signed/tariffs negotiated and adopted
Component 3:
3.1. Fund for Urban Modernization capitalized
3.2 Portfolio of bankable emission reduction projects financed and implemented
3.3. Funding terms and eligibility criteria defined and adopted
3.4. Fund Management and Administration structure established and staff trained
3.5. Fund's operations independently evaluated at least twice during project cycle
3.6. Funding diversification strategy and mechanisms to leverage additional financing from
public, private and international sources of funding developed
Component 4:
4.1. Complex modernization program for district “Prigorodnoye” of Astana designed with a
view of achieving 50% reduction in district GHG emissions below baseline (co-financed)
4.2. Modernization program implemented (BAU requirements - co-financed), including
additional emission reduction measures to reach 50% target (GEF financed)
Component 5:
5.1. Developed national MRV guideline and standard methodologies for urban NAMAs
5.2. Rules and procedures allowing for certification of emission reduction credits from urban
NAMAs and their import into domestic ETS adopted and enforced
5.3. Monitoring plan and data collection protocols developed and implemented for pilot
credited NAMAs
5.4. National data-base and registry for urban GHG emission and NAMA is set up and
operation at MEP
5.5. Emission reduction purchase agreement signed between domestic entities under ETS
and municipalities
5.6. Local staff assigned and trained in implementing MRV systems
5.7. Analyzed, published and disseminated lessons learned from the implementation of
the pilot urban NAMAs and MRVs
5.8. On-line knowledge platform and city-to-city exchange scheme.
PERFORMANCE
INDICATORS
CONTACTS
PROJECT
WEBSITE
Marina Olshanskaya
UNDP-GEF Regional Technical Advisor
Tel. +421-907-840-152
E-mail: marina.olshanskaya@undp.org