Doing Business: Environment
Introduction
The Environmental Code regulates the environmental relations in the Republic of Kazakhstan. It is generally believed to be close to international standards of environmental regulation.
General Environmental Requirements
Individuals and legal entities which are involved in the use of the environment are subject to state environmental control. The Ministry of Environmental Protection of Republic of Kazakhstan (MEP) carries out such control through the performance of state environmental inspections. Various aspects of business activities are subject to environmental requirements. For example, a positive state environmental expert evaluation should be obtained in relation to projects involving an environmental impact before such projects may begin. For example, enterprises engaged in environmentally hazardous business activities are subject to the mandatory requirement of obtaining environmental insurance covering potential damage as a result of environmental contamination. For the violation of environmental requirements, legal entities and individuals may be subject to civil, administrative and criminal liability.
Regulatory Bodies
The principal state authority in the sphere of environmental protection is the Ministry of Environmental Protection of Republic of Kazakhstan (MEP). It issues environmental permits and licenses and establishes the limits for environmental emissions, whereas the tax authorities are responsible for collecting environmental contamination and emissions payments .
Environmental Authorizations
All individuals and legal entities that produce air discharges, sewage and any solid consumption or industrial waste should obtain environmental permission from their local subdivisions of the MEP. There are two types of environmental permits according to the Environmental Code:
(i) Permits for environmental emissions; and
(ii) Complex environmental permits.
The common forms of permission are emissions permits. They are issued for a specific term (three to five years). The environmental user will need to re-apply to the MEP for renewal when a permit for environmental emissions expires.
In place of an emission permit, a complex environmental permit may be issued for an indefinite term to those environmental users that comply with the best available environmental technologies. A complex environmental permit is valid until the technologies applied or conditions of environmental use specified in the environmental permit change. On 12 March 2008 the government approved the list of technologies eligible for the complex permit. Individuals and legal entities are required to have separate environmental licenses if they are involved in:
- Environmental design;
- Environmental expertise; and
- Environmental audit.
The permits mentioned above are subject to certain qualification requirements set out by the legislation of Kazakhstan.
Greenhouse gases
Greenhouse gases emissions are regulated under the Kazakhstan Environmental Code and additional legislative acts and regulations. Legal entities with sources of greenhouse gases emissions and ozone-depleting substances should conduct an inventory report of greenhouse gases and ozone-depleting substances. Reports must be submitted on an annual basis to the state agency with authority in the field of environmental protection, no later than April 1 following the reporting year.
The Government setup payments for environmental pollution in accordance with the Environmental Code. For example payments for emission from stationary sources is KZT 2600 per conditional ton. The payments for natural gas burning resulting in greenhouse gases and COx emissions are KZT 61,134 per conditional ton.
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