This report is a contribution to a chapter on environmental regulation within OECD’s multidimensional country review of Kazakhstan. We examine strategic challenges for the Kazakh economy, the economic impact of a potential national Emission Trading System, electricity pricing and the impact of the Green Economy concept. Emission reduction and an improvement of energy efficiency are crucial for a sustainable development of the Kazakh economy since its economic success is highly dependent on finite resources. This dependency might in future be harmful to innovative economic growth.