The changes and transformations experienced in the global energy sector in the 21st century have accelerated under various international environmental and climate agreements, most notably the Paris Climate Agreement, forcing many countries to transition from fossil fuels to renewable energy sources. This phase of transformation is not only economic or technical but also has social, political, and environmental dimensions. As such, the widespread implementation of carbon neutrality targets has continuously highlighted the necessity of substantial structural adjustments for fossil fuel exporting nations.
Kazakhstan, located in the energy hub of Central Asia, is at the center of this wave of change. Kazakhstan is home to the world’s largest reserves of coal, with approximately 170 billion tons. Given that coal accounts for around 70% of the government’s overall electricity generation, this energy source is already vital for both economic growth and the security of the energy supply. These factors emphasize that rather than dumping coal out of the country at short notice, it is necessary to properly manage its energy transition and strategically restructure its coal business.
Experts have differing views about Kazakhstan’s coal reserves. The reserves are expected to last between 250 and 300 years at present consumption rates, according to government-published data. However, according to some experts, this time frame could be as long as 650 years. Owing to its commitments under the Paris Agreement and its objective of becoming carbon neutral by 2060, Kazakhstan aims to gradually reduce its coal consumption. The nation’s economy depends heavily on this industry, not only for energy production but also for employment, the balance of foreign commerce, and regional development. In particular, industrial regions such as Pavlodar and Karaganda are heavily dependent on coal mining. However, the transformation of the coal sector requires not only technical investments but also regional development strategies, social policies, and labor force transformation.[1]
Kazakhstan has more than 40 coal deposits, with the largest and most commercially viable reserves concentrated in the central and northern regions of the country. The Karagandy coal field, which contains the country’s coal reserves, is a key center for the development of coal chemistry. In addition, the country has access to different markets for export. Kazakhstan’s exports to Ukraine, Russia, and European countries are being reshaped due to the carbon border tax imposed by the European Union. In contrast, exports to African and Asian countries such as China, Morocco, and India have increased. Beyond all this, Kazakhstan has shifted its focus from merely producing raw materials in the coal industry to producing high-value-added products. It is collaborating with China on joint projects in the field of “coal chemistry,” a scientific and technological field that aims to convert coal into fuels, chemicals, and valuable materials by studying its chemical structure. In addition, it aims to convert coal into petrochemical products for use in many different areas.[2]
Under the Green Economy Action Plan covering the years 2024 to 2030, it is envisaged that renewable and alternative energy reserves will be increased to 15% of electricity production and that old thermal power plants will be shut down. Additionally, renewable energy reserves account for 6.5% of total energy. From an ecological perspective, coal production, particularly open-pit mining, and carbon emissions pose numerous environmental risks. However, companies such as Bogatyr Komir aim to mitigate these effects by investing $40 million annually in environmental projects in the country.[3]
Kazakhstan’s current multi-sector industrial and investment transformation strategy not only aims to increase the country’s economic diversity but also demonstrates the emergence of a comprehensive development approach that prioritizes environmental sustainability and green transformation objectives. Having relied heavily on coal and other fossil fuels for energy security over the years, the country is now laying the foundations for a transition to a renewable energy-focused economic structure by transforming this traditional framework.
One of the most notable developments in this regard is the gradual increase in the share of renewable reserves in energy production and the strengthening of the domestic production infrastructure at this stage. In addition, the establishment of facilities for the production of basic components for wind power plants demonstrates that Kazakhstan aims to significantly reduce its dependence on foreign renewable energy technologies and has adopted a long-term strategic vision. Furthermore, the planned power plants should be regarded as a positive step toward the widespread adoption of energy production models that embrace carbon emission reduction. Although the coal sector continues to play a very important role in the Kazakh economy, this role is gradually transforming and shifting toward production methods with reduced environmental impacts and chemical processing.
[1] “Kazakhstan Seeks to Unlock Economic Potential of Vast Coal Reserves”, The Astana Times, https://astanatimes.com/2025/02/kazakhstan-seeks-to-unlock-economic-potential-of-vast-coal-reserves/, (Date Accessed: 23.07.2025).
[2] Ibid.
[3] “Kazakhstan joined the CCAC in 2023”, Climate and Clean Air Coalition, https://www.ccacoalition.org/partners/kazakhstan, (Date Accessed: 23.07.2025).
