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Article 92. Restrictions on Conduct of Environmental Audits

Environmental audit firms or environmental auditors shall be prohibited from conducting an environmental audit:

1) in respect of customers, of which such environmental audit firm or environmental auditor is a member or creditor;

2) if persons conducting the audit are employed by, or close relatives or relatives in-law of, the officers of the audited entity, or a shareholder (participant) thereof holding ten per cent or more of shares (interests in the charter capital) in the audited entity;

3) if persons conducting the audit have any property interest in the audited entity; or

4) if the environmental audit firm or environmental auditor have any monetary liabilities to the audited entity, or the audited entity has any monetary liabilities to the environmental audit firm or environmental auditor, other than the liability to conduct the environmental audit.

Article 93. Rights and Obligations of an Audited Entity

1. An audited entity may:

1) independently select an environmental auditor or environmental audit firm;

2) receive from the environmental auditor or environmental audit firm full information about the requirements of the environmental laws of the Republic of Kazakhstan in regards to the environmental audit;

3) get acquainted with laws and regulations, on which the conclusions or comments of the environmental auditor or environmental audit firm rely;

4) receive from the environmental auditor or environmental audit firm recommendations, information about any revealed non-compliance of the environmental reports and other documents with laws of the Republic of Kazakhstan; and

5) to terminate the engagement of the environmental auditor or environmental audit firm if they violate the terms and conditions of the environmental audit agreement.

2. An audited entity shall:

1) arrange for mandatory environmental audit;

2) create conditions for the environmental auditor or environmental audit firm to enable them to conduct the environmental audit properly and in a timely manner;

3) provide full and reliable documentation and other information, whether in writing or orally, as may be required by the environmental auditor or environmental audit firm in connection with the environmental audit;

4) provide reliable environmental impact reports and other documents required for the environmental audit;

5) not to restrict the activities of the environmental auditor or environmental audit firm, unless otherwise is provided for by the environmental audit agreement;

6) send written inquiries in its own name, at request of the environmental auditor or environmental audit firm, to third parties in order to obtain necessary information;

7) make payments to the environmental auditor or environmental audit firm for its services; and

8) fulfil other requirements arising out of contract obligations under an environmental audit agreement.

Article 94. Audit of Environmental Management Systems

1. An audit of environmental management systems shall be conducted on an initiative basis.

2. Based on the results of the audit of environmental management systems, individuals and legal persons may obtain a document certifying compliance of the applied environmental management system with the international standards, in accordance with the laws of the Republic of Kazakhstan on technical regulation.

Section 3. Economic Regulation of Environmental Protection and Nature Use

Chapter 10. Mechanisms of Economic Regulation of Environmental Protection and Nature Use

Article 95. Types of Mechanisms of Economic Regulation of Environmental Protection and Nature Use

There shall be the following types of mechanisms of economic regulation of environmental protection and nature use:

1) planning and financing of environmental protection measures;

2) emissions charge;

3) charge for use of certain types of natural resources;

4) economic incentives for environmental protection;

5) market mechanisms and emissions trading;

6) environmental insurance; and

7) economic evaluation of damage to the environment.

Article 96. Environmental Protection Measures

1. An environmental protection measure shall be understood as a complex of technological, technical, organisational, social and economic actions aimed at environmental protection and improvement of environmental quality.

2. Environmental protection measures shall include the measures:

1) aimed at ensuring the environmental safety;

2) improving the state of components of the environment by increasing quality characteristics of the environment;

3) contributing to stabilisation and improvement of the state of the environmental systems, preservation of biological diversity, rational use and restoration of natural resources;

4) preventing damage to the environment and human health;

5) improving the methods and technologies aimed at environmental protection, rational nature use and introduction of the international standards in the environmental management;

6) developing the production environmental control;

7) forming environmental information systems and contributing to the provision of environmental information; and

8) contributing to propaganda of environmental knowledge, environmental education and awareness-building for the purpose of sustainable development.

3. Environmental protection measures may include investment environmental projects, which incorporate measures listed in paragraph 2 of this Article.

4. The standard list of the environmental protection measures shall be approved by the environment protection authority.

Article 97. Financing of Environmental Protection Measures

Environmental protection measures shall be carried out at the expense of:

1) budget funds;

2) own funds of nature users; and

3) other sources not prohibited by laws of the Republic of Kazakhstan.

Article 98. Planning of Budget-funded Environmental Protection Measures

1. Environmental protection measures funded by budgets of different levels shall be determined in accordance with the directions established in the national, industry (sectoral) and regional programmes, as well as Decrees of the President of the Republic of Kazakhstan, Resolutions of the Government of the Republic of Kazakhstan and local representative bodies.

2. The procedures for developing environmental programmes and plans to be financed from the budget funds shall be established by the budget laws of the Republic of Kazakhstan.

3. Environmental protection measures shall be included in the programmes and plans of social and economic development of the Republic of Kazakhstan, administrative territorial units, environmental programmes, and plans for certain areas.

4. Prior to approval, regional environmental programmes, plans and programmes, plans of social and economical development of certain areas shall be agreed with the environment protection authority.

5. The local executive agencies of oblasts (of the city of national significance, and of the capital) shall develop and submit to the environment protection authority investment environmental projects (programmes), in accordance with the budget laws of the Republic of Kazakhstan.

6. For the development of environmental programmes, an open tender of environmental projects may be conducted in accordance with the procedure defined by the Government of the Republic of Kazakhstan.

Article 99. Planning of Environmental Protection Measures Financed by Nature Users at their Cost

1. Environmental protection measures financed by nature users at their cost shall be planned by nature users independently.

2. Environmental protection measures shall be included in the plan of environmental protection measures developed by nature users with a view to obtaining environmental permits.

Article 100. Planning of Environmental Protection Measures Financed from Other Sources Not Prohibited by Laws of the Republic of Kazakhstan

Environmental protection measures financed from other sources shall be planned in the procedure established by laws of the Republic of Kazakhstan.

Article 101. Emission Charge

1. The emission charge shall be established by the tax laws of the Republic of Kazakhstan.

2. The charge for emissions produced by nature users within the limits determined in the environmental permit shall be collected according to the list of pollutants and types of waste, as approved by the Government of the Republic of Kazakhstan.

3. The method of calculation of emission charge shall be approved by the environment protection authority.

4. Rates of emission charge shall be established by the local representative bodies of oblasts (city of national significance, and of the capital), however, such rates shall not be below base rate and not higher than the maximum rates approved by the Government of the Republic of Kazakhstan.

5. The fulfilment of tax liabilities as to payment of emission charge shall not relieve a nature user from the liability to compensate the damage caused by such nature user to the environment.

Article 102. Compulsory Payments to the Budget for the Use of Certain Types of Natural Resources

The compulsory payments to the budget for the use of certain types of natural resources shall be established by the tax laws of the Republic of Kazakhstan.

Article 103. Economic Incentives for Environmental Protection

The Government of the Republic of Kazakhstan may approve the maximum rates of emission charge for the purpose of an economic incentive for efficient implementation by nature users of the environmental protection measures.

Article 104. Sovereign Guarantee in Respect of Private Loans

The Government of the Republic of Kazakhstan may grant a sovereign guarantee in respect of private loans borrowed for the implementation of the environmental protection measures, in the procedure established by the budget laws of the Republic of Kazakhstan.

Article 105. Market Mechanisms of Emission Management

1. In order to reduce emissions the Government of the Republic of Kazakhstan may introduce market mechanisms by setting limits and quotas on emissions and approving the procedure for trading of quotas and commitments to reduce emissions.

2. Should such quota be established, a nature user shall be entitled to an annual emission quota.

Article 106. International Quota Trading

1. If the international treaties ratified by the Republic of Kazakhstan provide for the participation by Kazakhstan in trading emissions, nature users may enter into appropriate agreements with foreign individuals and legal entities in the procedure established by the Government of the Republic of Kazakhstan.

2. An emission trading agreement concluded between a resident of the Republic of Kazakhstan and a foreign individual or legal entity shall be registered with the authorised agency designated by the Government of the Republic of Kazakhstan.

Article 107. Environmental Insurance

1. The purpose of the environmental insurance shall be to compensate against damage caused to life, health, property of third parties and/or the environment as a result of an emergency pollution.

2. Mandatory environmental insurance shall be procured in accordance with the laws of the Republic of Kazakhstan on mandatory environmental insurance. The environmentally-hazardous types of business and other activities shall be determined by this Code and the Government of the Republic of Kazakhstan.

3. Voluntary environmental insurance shall be procured by individuals and legal entities at their option. The types, terms and conditions of voluntary environmental insurance shall be determined by agreement between insurers and insurants.

Chapter 11. Economic Evaluation of Environmental Damage

Article 108. Procedures for Economic Evaluation of Environmental Damage

1. The economic evaluation of the damage caused to the environment shall mean value terms of costs required for the rehabilitation of the environment and useful properties of natural resources.

2. Within one month from the date on which the fact of the damage to the environment has been ascertained, officials of the environment protection authority shall gather and analyse necessary materials and give economic evaluation of the damage caused.

3. The economic evaluation of the damage caused by the pollution of the air and water resources in excess of the established standards, as well as by placement of industrial and consumption waste, including the radioactive waste, in excess of the established limits, shall be made using direct or indirect methods in accordance with the rules approved by the Government of the Republic of Kazakhstan.

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