Carbon prices will be formed in market conditions - Zhasyl Damu
"An important factor is pricing. Exchange trade will be carried out by means of optional sales through auctions on a commodity exchange. Thus, the companies will be able to determine the optimal price for emission permits," Tsoy said.
"In order to prevent speculation, we will let the market to determine the price for permits, but according to international experts, if the price is lower than 10 U.S. dollars per ton, the system will not be effective enough, so we (Ministry of Environmental Protection), as regulators, will take measures to fix the starting price," he noted.
At the same time the price will not be put on paper, this approach should be formed by the market.
Speaking about the formation of the market, the expert stressed that "the market will definitely produce the economic effect because due to the start of trading and introduction of this system Kazakhstan will receive "green" investments."
Besides, the markets of developed countries do not accept production of the countries, which are not implementing emission control systems.
"By introducing a cap and trade system we give our industry another chance to enter the world markets. If the system works, enterprises take into account these restrictions, their products will be much more competitive than of those countries where this system is not implemented," the head of the company emphasized.
According to him, the enterprises will get permits for about 147 million tons of carbon dioxide emissions.
"We think that the initial trade on the stock exchange in 2014-2015 will cover about 10%, or 14-15 million tons. They can be bought and sold," Tsoy concluded.
