Law On The Transition To A Green Economy Presented In Kazakhstan
On 1 July 2016, the Law of the Republic of Kazakhstan On Amendments and Additions to Some Legislative Acts of the Republic of Kazakhstan on the transition of the Republic of Kazakhstan to a “green economy” (hereinafter – Green Economy Law) came into force. This law has been drafted as one of the measures within the framework of the concept of a green economy and is aimed at the efficient use of resources and waste treatment/recycling. The main areas of application of the Green Economy Law are waste, electric power industry and water resources.
- The Law introduces a more precise regulation of removal and storage of waste, which, in particular, is expressed in the following:
- Adoption of mandatory national standards to market participants and market items is provided for;
- Disposal of solid waste without primary treatment is prohibited;
- The list of waste prohibited from storage on landfills is expanded;
- New requirements for newly constructed landfills are established.
- Separate collections of waste products (Akimats will be required to develop a waste collection system, providing for separate collections of waste products).
- Priority to public procurement of goods produced with the use of secondary raw materials obtained from waste products on the territory of the Republic of Kazakhstan.
Electric power industry
- Annual indexation of approved fixed tariffs subject to changes in the exchange rate of the national currency against foreign currencies in the procedure established by the Government of the Republic of Kazakhstan. However, this procedure has not yet been approved.
- The costs of contingent consumer (producer of electricity from conventional sources) for purchase of electricity produced by facilities using renewable energy sources (RES) from the Financial Settlement Centre (FSC) are to be taken into account when determining the maximum tariff.
- A reserve fund of the FSC is introduced to cover cash deficiencies and debts of the FSC to RES organizations, which result from non-payment or delayed payment by contingent consumers for the electricity produced by RES organizations and supplied to them.
- The deadline for filing applications for concluding a sale and purchase agreement with the FSC is changed from “no later than thirty days prior to the supply of electric power” to 60 calendar days from the date of inclusion in the RES list.1
- The agreement on connection of RES facilities to power grids between power transmission companies and companies which plan to construct (expand, reconstruct) RES facilities shall include liability of the latter for the failure to fulfill its obligations under the agreement on connection.
- Hydroelectric power plants commissioned after 1 January 2016 are subject to the Law On Support of Renewable Energy Sources, though they are not contingent consumers (i.e., do not have the obligation to purchase electricity produced from RES.)
- Regulation of water quality management, standards of consumption and wastewater disposal has been made more precise, in particular:
- The general allotments of water use are established by the authorized agency for 10 years and by regional agencies on an annual basis.
- Priority on water supply (after supply of drinking water) to industrial enterprises in dry years, to irrigated agriculture in medium dry years and to liman irrigation in average water years has been established.
- Relevant state bodies’ powers have been demarcated with simplifications to the procedures.
- Planning and rationing of water consumption—both at the state level and at the level of water users—have been detalized.
- The right of the regional authority to limit or suspend water intake in dry years has been introduced.
- The requirement for water management facilities to have their own water protection zone has been abolished.
1 Conclusion of a sale and purchase agreement with the FSC for purchase of electricity produced by the RES facilities is possible only after their inclusion in the list of energy-producing companies that use RES.