ETS allowance allocation and Auction Design

REQUEST FOR EXPRESSION OF INTEREST Country: Republic of Kazakhstan Partnership for Market Implementation Project Grant No. TF0B9097 Assignment title: ETS Allowance Allocation and Auction Design Contract No. KZPMI-QCBS-01 (as per the Procurement Plan) The Republic of Kazakhstan has received financing from the International Bank for Reconstruction and Development and the International Development Association (“the World Bank”), acting as agency of the Partnership for Market Implementation Multi Donor Trust Fund, toward the cost of the Partnership for Market Implementation Project (“the Project”), and it intends to apply part of the proceeds to payments for consulting services to be procured under this project. The executive agency is the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan (MENR). Project’s objective is to enhance Kazakhstan’s Emissions Trading System (ETS) through the design of an allowance auctioning mechanism, complementary market-stability and the Carbon Fund. These measures will strengthen Kazakhstan’s carbon pricing architecture, improve price discovery and liquidity. MENR intends to apply a part of the proceeds for consulting services on ETS Allowance Allocation and Auction Design. This assignment aims to support Kazakhstan's authorities in establishing an effective conceptual and regulatory framework for allowance allocation and auctioning under the ETS. The specific objectives include: Design the ETS primary-market auction mechanism concept and prepare expert recommendations for draft regulatory legal acts and/or amendments to existing acts to enable auctioning. Assess options for ETS price management and market stability mechanisms - including, a MSM - and prepare expert recommendations for regulatory legal acts and/or amendments to existing acts to enable the most suitable mechanism. Develop the conceptual design and regulatory framework for the establishment and operation of the Carbon Fund, including its mandate, govern