KazMunayGas Is the First in Kazakhstan to Purchase Renewable Energy Certificates
In order to reduce its indirect greenhouse gas (GHG) emissions, JSC NC “KazMunayGas” (KMG) has purchased International Renewable Energy Certificates (I-REC) and made a claim for 8.5 million kWh, which corresponds to the expected electricity consumption by KMG’s headquarters in 2022.
GHG emissions are divided into three scopes: Scope 1 includes direct emissions of a company released during its operations. Scope 2 encompasses indirect GHG emissions from consumed energy, for example, by the office of a reporting company (it is important to understand what sources the company receives energy from: coal plants, nuclear power plants, hydro power plants, etc.). Scope 3 includes all other indirect emissions that are related to the operations of a company but are not directly controlled by it.
Voluntary I-RECs confirm information about the electricity generation from a renewable energy source (RES). A certificate is linked to 1 MWh of clean electricity, geographic location of the power plant and time period of electricity generation. Certificates are issued on the basis of an international standard developed by the International REC Foundation and are acknowledged by international organisations, such as GHGP, CDP, RE100, ISO, etc. I-RECs are traded worldwide and are issued in 51 countries.
Companies that purchase I-RECs may, according to international practice, claim the reduction of GHG emissions from the use of electricity within Scope 2. ‘Green’ certificates also enable green electricity producers to get a new market mechanism of financial support through the sale of such certificates.
KazMunayGas purchased certificates issued for a solar power plant in one of the country’s regions. This is the first such experience in Kazakhstan. The international renewable energy certification platform started its work in Kazakhstan this year. The I-REC issuer approved the ECOJER Association that keeps accounts of registrants in the I-REC registry, checks documents confirming the origin of electricity from RESs and issues certificates on request of applicants.
By purchasing ‘green’ certificates, KazMunayGas demonstrates its commitment to sustainable development and ESG principles, consistently implements the corporate carbon footprint reduction programme, while rendering financial support in RES development.
About JSC “National Company “KazMunayGas”
JSC “National Company “KazMunayGas” is a leading vertically integrated oil and gas company in Kazakhstan. KMG manages assets across the entire production cycle from exploration and production of hydrocarbons to transportation, refining and provision of dedicated services. Founded in 2002, the Company represents Kazakhstan’s interests in the national oil and gas industry.
The International REC Foundation (I-REC Standard) is a non-profit organisation that provides a robust standard for tracking green attributes. The I-REC Standard is acknowledged by major reporting frameworks such as the Greenhouse Gas Protocol (GHGP), Carbon Disclosure Project (CDP), and RE100 as a reliable backbone for credible and auditable tracking instruments. Accordingly, I-RECs are issued on the basis of this standard.