Best Energy, Environment & ESG Lawyers in Kazakhstan

About Energy, Environment & ESG Law in Kazakhstan

Energy, Environment & ESG (Environmental, Social, and Governance) law in Kazakhstan refers to the collection of legal rules, regulations, and government policies that manage the country’s energy sector, environmental protection, and the evolving standards for corporate responsibility. Kazakhstan is rich in natural resources, making energy production a central part of its economy, while environmental stewardship and sustainable business practices are growing in importance due to international obligations and stakeholder expectations. As Kazakhstan’s industries modernize and engage with global markets, compliance with these laws is vital for both local and foreign companies.

Why You May Need a Lawyer

Legal assistance is often necessary when dealing with Energy, Environment & ESG matters in Kazakhstan for several reasons. Individuals and companies may require a lawyer when:

• Securing permits or licenses for energy exploration, production, or infrastructure development
• Dealing with environmental impact assessments and compliance with environmental regulations
• Facing investigations or enforcement actions regarding pollution, spills, or hazardous waste
• Entering into joint ventures or agreements with state entities or foreign partners in the energy sector
• Pursuing renewable energy projects and navigating subsidies or incentives
• Preparing ESG disclosures and ensuring compliance with new corporate governance standards
• Addressing land use or community rights in the context of resource extraction
• Resolving disputes related to energy supply contracts or environmental liabilities

Given the complexity of the regulatory landscape, an experienced lawyer is critical for protecting your interests and ensuring compliance in these sensitive areas.

Local Laws Overview

Kazakhstan’s legal framework for Energy, Environment & ESG includes a mix of national laws, presidential decrees, and government resolutions. Some of the most relevant statutes and rules include:

• Code on Subsoil and Subsoil Use: Regulates the exploration and use of natural resources, licensing, and contractual agreements in mining and hydrocarbons.
• Environmental Code: Sets obligations for pollution prevention, environmental assessments, and permits for emissions, waste management, and land use. Updated in 2021, it strengthens environmental protection and introduces new standards for monitoring and liability.
• Law on Electric Power Industry: Governs electricity generation, transmission, distribution, and market operations, including incentives for renewable energy development.
• Law on Support for the Use of Renewable Energy Sources: Provides a framework for subsidies, tariffs, and project support for solar, wind, hydro, and other renewables.
• ESG and Corporate Governance Provisions: While not always codified as stand-alone legislation, ESG requirements are increasingly being adopted by regulators, stock exchanges, and international partners, particularly for publicly traded or internationally active companies.

Compliance with all applicable local laws is crucial, especially for foreign investors or large-scale projects. Failure to comply can result in fines, suspension of operations, or loss of permits.

Frequently Asked Questions

What permits are required to start an energy project in Kazakhstan?

You typically need a subsoil use license, environmental permit, and, for renewables, approvals from the relevant energy authorities. Depending on the project, other permits regarding land use, construction, and industry-specific regulations may also apply.

How does Kazakhstan regulate environmental protection?

Through its Environmental Code, Kazakhstan enforces requirements such as environmental impact assessments, emission limits, waste management, and liability for environmental harm. Companies must regularly report their compliance and undertake remediation when needed.

What are the main ESG reporting requirements in Kazakhstan?

Public companies and firms seeking international financing are increasingly required to disclose their ESG practices and performance. While national ESG standards are still evolving, companies often follow international frameworks such as GRI or SASB, especially if they list shares on the stock exchange.

Can foreign companies invest in Kazakhstan’s energy sector?

Yes, Kazakhstan encourages foreign investment, particularly in energy and renewables. There are rules covering investment protection, but foreign investors must comply with licensing, local content, and environmental requirements.

Does Kazakhstan promote renewable energy?

Yes, there are government programs supporting renewable energy through guaranteed tariffs, project auctions, and other incentives. Developers must comply with permitting procedures and grid connection rules.

What are the penalties for violating environmental laws?

Penalties can include fines, suspension of activities, compulsory remediation, and in serious cases, criminal liability. Fines are determined based on the extent of harm and repeat violations.

How are disputes in the energy sector resolved?

Disputes may be resolved in local courts or, in some cases, through international arbitration if the contract provides for it. The Astana International Financial Centre (AIFC) also offers specialized dispute resolution mechanisms.

What is required for an environmental impact assessment?

Projects with potential environmental impact must submit detailed reports analyzing risks and planned mitigation measures. These reports are reviewed by relevant governmental bodies before permits are granted.

Is local community engagement required for projects?

Yes, especially for projects with significant environmental or social impacts. Public hearings and stakeholder consultations may be required as part of the permitting process.

How is corporate governance regulated in Kazakhstan?

The Corporate Governance Code, listing requirements, and recommendations from the Agency for Regulation and Development of the Financial Market set out governance standards, including board responsibilities, shareholder rights, and disclosure obligations.

Additional Resources

If you need more information or assistance in Energy, Environment & ESG matters, the following resources may be helpful:

• Ministry of Energy of the Republic of Kazakhstan - Regulatory authority for the energy sector and renewable projects
• Ministry of Ecology and Natural Resources - Oversees environmental policy, permits, and enforcement
• Atameken National Chamber of Entrepreneurs - Provides business support and legal information
• Astana International Financial Centre (AIFC) - Offers dispute resolution and ESG guidance for international investors
• Kazakhstan Electricity Grid Operating Company (KEGOC) - Key partner for power sector projects
• Kazakh Invest - Government agency supporting foreign investment in Kazakhstan

Next Steps

If you require legal help in the field of Energy, Environment & ESG in Kazakhstan, consider these steps:

• Identify and clearly define the issue or question you face
• Gather all relevant documents, contracts, permits, and correspondence
• Research legal specialists or law firms with experience in the Kazakh energy, environment, or ESG sectors
• Schedule a consultation to discuss your matter, compliance obligations, or possible disputes
• Follow your lawyer’s advice on compliance, filings, or negotiations with authorities or business partners
• Monitor updates to local laws and ESG trends as these areas continue to develop rapidly in Kazakhstan

Seeking timely legal support ensures your interests are protected and helps you navigate the complex legal landscape in Kazakhstan’s energy, environmental, and ESG sectors.