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Kazakhstan - Establishing a Financing Facility for SLCP Mitigation in Waste Sector

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RATIONALE

This project responds to a request made by the Ministry of Ecology, Geology and Natural Resources of Kazakhstan to support the design and piloting of a national financing facility dedicated to short-lived climate pollutants (SLCP) mitigation in the waste sector. Despite available funding sources such as Extended Producer Responsibility (EPR) schemes, Emissions Trading System (ETS) revenues, and potential Article 6 carbon finance, investments in SLCP-reducing waste projects (e.g., methane capture, landfill gas-to-energy, composting) remain limited.

The proposed project will deliver a structured approach to evaluate Kazakhstan’s SLCP mitigation potential in the waste sector and establish a blended finance mechanism to unlock public and private capital. This project will also identify regulatory and policy barriers, explore institutional options, and develop a roadmap to scale investment through supportive policy action.  

This project should align with and contribute to the implementation of the following policies:  

It will help operationalize SLCP priorities under the Global Methane Pledge and foster synergies with the ETS and EPR systems.  

This project will build on the ongoing CCAC-supported project:  Kazakhstan - Develop a national SLCP plan to mainstream SLCP mitigation into existing policy and methane roadmap, which focuses on MRV systems and a national methane strategy aligned with NDC 3.0; and further aligned with activities by development institutions including the Kazakhstan Wastewater Biogas Recovery Initiative, the Central Asian Capacity Building for Methane Emission Reduction, Bilim Barine’s Educational Program on Methane Reduction and Biogas, IFC’s Technological Solutions for Methane Emission Reduction, and the SECCA Methane Emissions Analysis (2023). 


 

Activities


Outcome 1: The Government of Kazakhstan adopts the recommendations of the national financial landscape assessment to guide SLCP investment planning by the end of the project.

Indicator: Amount of external funding (“catalysed funding”) for SLCP actions

  • Output 1.1: Financial landscape assessment report identifying available and potential funding sources (e.g., EPR, ETS, Article 6) for SLCP mitigation in the waste sector.
  • Output 1.2: SLCP mitigation potential analysis, including prioritization of investment-ready technologies and interventions
  • Output 1.3: Stakeholder engagement report summarizing private sector, municipal, and investor perspectives on financing needs and market conditions.

Outcome 2: The Government of Kazakhstan is ready to pilot a blended finance mechanism to support SLCP mitigation in the waste sector by the end of the project or soon after.  

Indicator: Amount of co-funding secured to support SLCP projects

  • Output 2.1: Governance model and operational structure for a national SLCP financing facility.
  • Output 2.2: Implementation framework to integrate funding from EPR, ETS, and international carbon finance instruments.
  • Output 2.3: Investment pipeline and business model for public-private co-financing of methane mitigation solutions.
  • Output 2.4: Recommendations for institutional coordination and operational oversight of SLCP financing mechanisms developed and validated.

Outcome 3: The Government of Kazakhstan demonstrates improved capacity to design and manage SLCP financing instruments by the end of the project.

Indicator: Number of government entities with a demonstrated improved capacity for SLCP action

  • Output 3.1: Needs assessment to identify technical assistance requirements for SLCP investment design and implementation, covering municipal authorities, project developers, and relevant public and private stakeholders to inform tailored support measures for structuring and scaling SLCP-aligned investments.
  • Output 3.2: Capacity-building workshops for relevant government bodies, financial institutions, and regulators on designing SLCP-aligned financing instruments, focusing on integrating SLCP mitigation into project pipelines, accessing climate finance, and aligning with national climate goals.
  • Output 3.3: Targeted technical assistance for municipal authorities and project developers on structuring and scaling SLCP investments, based on findings from the needs assessment (Output 3.1), including hands-on support for preparing bankable project proposals, developing public-private partnerships, and leveraging blended finance.

Outcome 4: The Government of Kazakhstan endorses a national roadmap to scale SLCP mitigation finance in the waste sector by the end of the project.

Indicator: Number of action plans, roadmaps, strategies, or other future plans with SLCP targets or mitigation measures formally adopted, endorsed and/or implemented

  • Output 4.1: Feasibility study and risk assessment of the pilot finance mechanism, identifying priority investment opportunities.
  • Output 4.2: National roadmap for scaling SLCP mitigation finance in the waste sector finalized and endorsed by relevant ministries.
  • Output 4.3: Policy brief with regulatory and financial recommendations disseminated to integrate SLCP financing into Kazakhstan’s broader climate strategies. 


 


Reference number: [KZ-25-004] Kazakhstan - Establishing a Financing Facility for SLCP Mitigation in Waste Sector