KAZAKHSTAN'S ENERGY TRANSITION

Abstract

A country with abundant coal, oil and natural gas resources, Kazakhstan was producing on average 2.3 times more energy than it needed domestically each year over the past two decades. Not surprisingly, more than 95% of the country’s domestic energy needs came from fossil fuels, primarily coal and, increasingly gas in recent years. This heavy reliance on fossil fuels meant that energy-related emissions are high – around 80% of the country’s total greenhouse gas (GHG) emissions in 2020, excluding effects of land use change. Amid the public controversy, Kazakhstan President Kassym-Jomart Tokayev announced that a national referendum would be held to decide the fate of the proposed nuclear power plant. Nuclear energy was only one prong of Kazakhstan’s energy transition strategy, but it underscored some of the challenges the country faced. For a country used to tapping its vast store of hydrocarbons, how could Kazakhstan decarbonise its energy value chain for a more sustainable future?