Addressing Industrial Air Pollution in Kazakhstan

Reforming Environmental Payments Policy Guidelines

Kazakhstan has recorded impressive economic growth rates since its independence, driven mainly by export of commodities and high rate of energy use. These rates are not sustainable and are generating significant air pollution, in particular from industrial stationary sources. This is putting at risk the country’s development ambitions to become one of the top global economies by 2050 and converge towards OECD living standards. Building on OECD previous analysis, this publication shows that Kazakhstan’s environmental payments (environmentally related taxes, non-compliance penalties and compensation for damage regulation) for industrial air pollutants, as currently applied, impede energy efficiency and pollution abatement with heavy-handed non-compliance responses and focus on rising revenues. They also add to the cost of doing businesses in the country with limited environmental benefit. In the spirit of the Polluter-Pays Principle, much more reforms of regulation of environmental payments are needed. This report provides guidelines for reform drawing from air pollution regulations in OECD member countries and the results of the analysis of the system in Kazakhstan carried out by the OECD in close co-operation with the Government of Kazakhstan.

Published on July 30, 2019Also available in: Russian

In series:OECD Green Growth Studiesview more titles


List of abbreviations
Executive summary
What are the issues?
How to charge taxes for air pollutants from stationary sources?
Moving to a broader and more effective range of non-compliance responses
What to do about monetary damages for industrial air pollutants?
Conclusions and ways forward
Annexes6 chapters available
Historical overview of the evolution of payments for emission
Environment Agency (England): Interventions available for enforcement
Illustration of a penalty calculation with a gravity component
Natural Resource Damage Assessment (NRDA) using equivalency analysis
Means of evidencing financial provision
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