ASSESSING CBAM READINESS IN KAZAKHSTAN: SUPPORTING THE COMPLIANCE OF KAZAKHSTAN EXPORTERS IN ALUMINIUM, IRON AND STEEL SECTORS

The EU’s Carbon Border Adjustment Mechanism (CBAM) is part of the European Green Deal and aims to ensure a fair carbon price for certain carbon-intensive goods imported into the EU, while encouraging cleaner industrial production globally. Following a transitional phase from 2023 to 2025, CBAM has already entered into force in January 2026, introducing new reporting and compliance requirements for exporters in six carbon-intensive sectors.

“By the end of 2025, the EU’s share of Kazakhstan’s foreign trade was approximately 31%, and its share of Kazakhstan’s exports was about 44%. It is particularly important to note that more than half of Kazakhstan’s aluminium exports are destined for European Union countries,” said Zhanel Kushukova, Deputy Minister of Trade and Integration of the Republic of Kazakhstan.

The report assesses the potential implications of the EU's CBAM for Kazakhstan's aluminium, iron and steel sectors and provides practical recommendations to support exporters in adapting to evolving international sustainability requirements. It includes a phased compliance roadmap and step-by-step guidance to help exporters strengthen emissions reporting practises, improve engagement with EU partners, and maintain their competitiveness in European markets.

The initiative contributes to Kazakhstan’s broader efforts to support sustainable industrial development and strengthen the resilience of export-oriented sectors in a changing global trade environment.

EUDELKZ

“CBAM forms part of the European Union’s broader climate and trade agenda. Strengthening transparency and sustainability reporting practices can support Kazakhstan’s exporters in remaining competitive in evolving international markets. Continued cooperation between public institutions, businesses, and international partners like ITC remains important in supporting this process,” highlighted Johannes Baur, Head of Cooperation at the EU Delegation to Kazakhstan. 

According to the assessment, Kazakhstan’s aluminium, iron and steel sectors may face increasing reporting and compliance requirements as the CBAM framework evolves, underscoring the importance of early preparation and gradual alignment with international verification and reporting practices.

“We have already begun a systematic process to help industrial exporters adapt to the European Union’s new requirements. This work aims to minimise the financial burden and maintain the competitiveness of Kazakhstani products in one of our most important markets,” emphasised Nurlan Kulbatyr, Deputy Director General of QazTrade JSC.

The report also includes sector-specific guidance for companies on emissions-related data collection, CBAM reporting requirements, and engagement with EU buyers during the adaptation process. The EU remains one of Kazakhstan’s key trading partners, including for sectors covered by CBAM such as aluminium, iron and steel. The introduction of CBAM further underlines the growing importance of sustainable production and transparent reporting practises in international trade.

Joost Pauwelyn, ITC International Expert and Lead Author of the report, commented: “Kazakhstan currently exports over €600 million worth of steel and aluminium to the EU. According to the assessment, the use of default CBAM values could result in over €100 million in annual CBAM-related costs, with 90% of this impact concentrated in steel bars and rods, where the estimated CBAM cost could exceed the value of the product itself (123%). The good news is that Kazakhstan’s producers could significantly reduce these costs through straightforward measures: monitoring and declaring actual emissions to replace default values, accrediting local verifiers, cutting emissions at production sites, and strengthening domestic carbon pricing mechanisms.”

NOTES FOR THE EDITOR 

About Ready4Trade Central Asia: Fostering Prosperity Through the Trans-Caspian Transport Corridor (2024-2028) 

This four-year technical assistance project funded by the European Union (EU) aims to advance the EU-Central Asia connectivity through increasing the operational efficiency of the Trans-Caspian Transport Corridor and internationalisation of Central Asian business. This will be achieved through simplifying cross-border formalities to attract trade and sustainable investment; improving regional coordination to foster trade and transport connectivity; and enhancing the competitiveness of micro, small and medium-sized enterprises to facilitate their access to regional markets and EU markets, including through leveraging the Trans-Caspian Transport Corridor. 

About the European Union 

The European Union is an economic and political union of 27 European countries. It is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. It acts globally to promote sustainable development of societies, environment and economies, so that everyone can benefit. 

About the International Trade Centre 

The International Trade Centre is the joint agency of the World Trade Organization (WTO) and the United Nations. ITC assists small and medium-sized enterprises in developing and transition economies to become more competitive in global markets, thereby contributing to sustainable economic development within the frameworks of the Aid-for-Trade agenda and the United Nations’ Sustainable Development Goals. For more information, visit www.intracen.org.