The Department of Ecology of the Atyrau Region v. Karabatan Utility Solutions LLP

On May 10, 2023, the Specialized Interdistrict Economic Court of the Atyrau Region decided a case filed by the Department of Ecology for the Atyrau Region (part of the Committee for Environmental Regulation and Control of the Ministry of Ecology, Geology and Natural Resources of Kazakhstan) against Karabatan Utility Solutions LLP (KUS). The Department sought an injunction prohibiting the operation of KUS’s quota-bound installations—gas turbine units Nos. 1–4 and water bath SPGG Nos. 1–2—until the company obtained carbon quotas. The case originated from a preventive control inspection conducted on Oct. 3, 2022. The inspection revealed that KUS’s verified greenhouse gas inventory report for 2021 recorded CO2 emissions of 35,482 tons, exceeding the 20,000-ton threshold that classifies an installation as quota-bound under Kazakh law. The Department concluded that KUS was required to hold carbon quotas to lawfully operate its installations. Despite being instructed to obtain quotas by an order of Oct. 26, 2022, KUS continued operations without them. On Mar. 15, 2023, the company was fined 1,725,000 KZT for non-compliance with this order. The Court found that KUS had violated Article 289(6) of the Environmental Code, which prohibits operating quota-bound installations without carbon quotas. It granted the Department’s claim, issuing an injunction prohibiting KUS from operating the installations until it secured the required quotas. The Court also ordered KUS to pay a state fee of 1,725 KZT.