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Biotechnological carbon credit production in Kazakhstan for building a sustainable economy

July 8, 2024

Arbor CS and Alacem LLP have signed a memorandum of cooperation for the first large-scale carbon offset project in Kazakhstan

Arbor CS is implementing the first large-scale biotechnological carbon offset project in Kazakhstan, using Paulownia plantations to absorb CO2. Today, the company signed its first memorandum of cooperation with Alacem LLP, a large cement plant in the Zhetysu region of Kazakhstan, with the support of ICG.

Carbon offsetting is carried out by creating forest-field landscapes. Thus, Arbor CS has invested in biotechnological capabilities, and the Arbor CS team of agronomists has developed a unique species of Paulownia — Arbor Star7, which absorbs CO2, traps dust, and releases ten times more oxygen than common Paulownia.

Arbor Star7 is adapted to the sharply continental climate of Central Asia, which is vital for the survival and future viability of the tree.

Paulownia, also known as the supertree, oxygen factory, and weapon against global warming, stands out among other plants for its ability to clean up radioactive contamination and release a vast amount of oxygen while absorbing CO2. This tree absorbs ten times more carbon dioxide than any other plant.

One mature hybrid Paulownia tree absorbs an average of up to 50 kilograms of carbon dioxide per day. Thus, over twelve months, a Paulownia plantation covering ten hectares will sequester an average of 300 tons of CO2 and trap 1,000 tons of dust, acting as the lungs for the environment. In addition, Paulownia restores soil fertility, removes heavy metals and other toxic compounds, contributing to soil fertility restoration.

The rapidly developing Arbor CS plantation will soon start producing carbon credits. The memorandum with Alacem LLP will significantly increase CO2 and fine dust utilization.

The first memorandum of Arbor CS is timely, considering that from October 1 this year, the European Union is implementing a Carbon Border Adjustment Mechanism (CBAM). This mechanism will create the need for carbon offsets for companies exporting to the EU, especially in carbon-intensive industries.

"Kazakhstan has natural and geographical advantages that allow it to become one of the largest suppliers of carbon credits to the global market. This will provide businesses with the opportunity to fulfill their sustainability obligations under their ESG strategies and achieve net-zero emissions," said Serzhan Shakirov, CEO of Arbor CS.

Arbor CS will continue to invest in Arbor Star 7 Paulownia carbon farms to increase capacity and provide more businesses with the opportunity to offset greenhouse gas emissions.

The initial capacity of the plantation is ten thousand tons of CO2. The maximum planned capacity is five hundred thousand tons of CO2.

Founded in 2023, Arbor CS is rapidly growing as one of the first and most innovative carbon credit companies in Kazakhstan.

About Alacem LLP

Alacem LLP is one of the largest cement producers in Kazakhstan. With the support of ICG, Alacem LLP quickly became a significant supplier of cement and related products in Central Asia. As the company grows, its products will be exported to the APAC regions and Europe.

About Arbor CS

Arbor CS is one of the first carbon credit farms in Kazakhstan. The company cultivates a special breed of trees on its own land for implementation and planting in industrial and manufacturing zones across the republic.
Arbor CS adheres to the latest global standards and can supply carbon credits compatible with key regulatory frameworks, including the EU carbon trading directives. Thus, Arbor CS facilitates the seamless trade of essential goods, allowing companies to achieve their sustainability and environmental protection goals.

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Arbor CS Media Relations Team:
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