Where Does the Recycling Fee Money Go? An In-Depth Interview with the Head of Zhasyl Damu

The recycling fee remains one of the most widely debated issues in Kazakhstan. For some, it is a mandatory payment when importing a vehicle; for others, it is an environmental policy instrument that should support waste recycling, infrastructure development, and the protection of natural areas. After the functions of the Extended Producer Responsibility (EPR) operator were transferred to state control, the main question remains the same: where does the money go, and what is actually changing in practice? We discussed these and other issues with Yerzhan Nurlanovich Sarsenbay, Chairman of the Management Board of Zhasyl Damu JSC.

— Today, Zhasyl Damu performs a wide range of functions, from administering EPR to managing hazardous waste. How do you define the organization’s role?

Our task is to turn environmental policy into concrete, measurable action: waste sorting lines, recycling facilities, specialized equipment, digital services, and nature conservation projects.

Since 2022, Zhasyl Damu JSC has performed the functions of the operator of extended producer and importer responsibility. This mechanism generates the funds commonly referred to as “recycling fee money.” Today, the operator’s functions are assigned to a company that is 100% state-owned, while the areas in which these funds may be used are determined by environmental legislation and the approved investment policy.

In addition to EPR, we manage ownerless hazardous waste and serve as the operator of the greenhouse gas emissions trading system. Therefore, our role extends beyond administering payments: we are involved in building a modern waste management system and developing the green economy.

— Why does the recycling fee continue to generate so much debate? Many people are particularly concerned about the payment required when they import a vehicle themselves.

This reaction is understandable. A person sees a specific amount they are required to pay and wants to know why they have to pay it and what happens to the money. Both the state and the operator have an obligation to answer that question with clear figures and tangible results.

At the same time, it is important to distinguish between different areas of responsibility. Zhasyl Damu JSC does not set the amount of the recycling fee and does not make decisions regarding fee rates. Our responsibility is to administer the funds received and direct them toward purposes established by law: waste collection, sorting, recycling, treatment, and the development of environmental infrastructure. People should be able to see tangible results — recycling plants, sorting lines, specialized equipment, separate waste collection systems, and measures to protect forests from fires.

— How much has been collected in recycling fees from importers of vehicles and self-propelled agricultural machinery in recent years?

More than KZT 134 billion was collected in this category in 2023, over KZT 162 billion in 2024, more than KZT 188 billion in 2025, and over KZT 65 billion in the first half of 2026.

The areas in which these funds may be used are established by the Environmental Code, while the amount of financing for each year is determined under the Company’s investment policy following coordination with the Ministry of Ecology and Natural Resources. Projects are financed in stages after selection, assessment, and the signing of relevant agreements.

I would also like to highlight the Company’s own payments to the state. From 2023 through the first half of 2026, Zhasyl Damu JSC transferred KZT 214.6 billion to the national budget, including KZT 73.5 billion in dividends and KZT 141.1 billion in corporate income tax.

— Where are the funds directed, and on what terms are waste management projects financed?

Priority is given to projects that develop infrastructure, reduce the amount of waste sent to landfills, and return secondary raw materials to the economy. This includes concessional financing for sorting and recycling facilities, payments to EcoQolday participants for waste actually collected and recycled, environmental projects under the Taza Qazaqstan initiative, hazardous waste management, and specialized infrastructure.

In 2024–2026, the Investment Headquarters under the Ministry of Ecology and Natural Resources approved 68 projects worth a total of KZT 376.8 billion. Thirty projects worth KZT 116 billion have already been financed. These include five municipal solid waste sorting projects with a combined annual capacity of 640,000 tonnes, 16 recycling projects with a capacity of 430,000 tonnes, and nine projects involving the purchase of 128 units of specialized equipment.

Twelve projects have already been commissioned: 122 units of equipment have been purchased, sorting lines with an annual capacity of 140,000 tonnes have been launched, and recycling facilities with an annual capacity of 18,300 tonnes have been put into operation.

Financing is provided at an annual interest rate of 3% for up to 15 years, with investors generally contributing at least 20% of their own funds. This model does not replace private business; rather, it makes recycling economically viable, particularly in regions where infrastructure has long been insufficient.

Supported areas include the recycling of tyres, wastepaper, paper and cardboard, and food waste; the production of goods from secondary raw materials; and the purchase of equipment for waste collection and transportation. We are gradually moving away from a “collect and landfill” model toward one in which waste becomes a resource.

— What is EcoQolday, and to what extent are ordinary residents involved in the system?

EcoQolday is a digital system that creates a transparent chain connecting those who generate waste, those who collect it, and those who recycle it. Recycling does not begin at the plant: waste must first be collected, sorted, transported, and its entire journey must be documented.

Since August 2024, 159 companies have applied to participate in the system, and 96 contracts have been signed. Approximately 131,000 tonnes of waste have been sent for recycling through the system, including more than 92,000 tonnes of paper, almost 29,000 tonnes of glass, and around 9,000 tonnes of tyres. Participants have received approximately KZT 3.4 billion in payments for actual results.

Residents also participate in the system. Of the 1,081 applications submitted by waste generators, 629 came from individuals. They delivered 2,276 tonnes of waste for recycling, primarily glass, paper, and tyres.

Separate waste collection is also being developed. Under the Taza Ui – Taza El pilot project, containers for paper and plastic have been installed in residential complexes in Astana, while work is being carried out jointly with local authorities and property management organizations across the regions. Our goal is to make separate waste collection a normal part of everyday urban life.

— Under the Taza Qazaqstan initiative, funds are also being directed toward protecting forests and specially protected natural areas. What has already been done?

Since 2024, Zhasyl Damu JSC has allocated KZT 33.1 billion from recycling fee revenues to modernize the material and technical resources of national parks, forest reserves, nature reserves, and forestry institutions.

A total of 1,006 units of specialized equipment have been purchased, including fire engines, off-road vehicles, and tractors. This equipment is already being used to patrol territories, transport firefighting crews, and prevent wildfires.

Separately from the equipment modernization program, KZT 16.9 billion has been allocated for SRO-1 early wildfire detection systems, drones, video surveillance, communications, and data transmission systems. Fourteen SRO-1 systems have been supplied to the regions. They monitor territories around the clock and transmit information about the first signs of fire to dispatch services. Detection systems make it possible to identify threats earlier, while specialized equipment enables crews to reach the source of a fire more quickly and contain it.

— Kazakhstan is currently reforming its waste management system. What is the essence of this reform?

The country needs a unified and manageable system in which the entire life cycle of waste can be traced: where it was generated, who collected it, where it was transported, and whether it was ultimately recycled.

Zhasyl Damu JSC has already been granted the status of the National Waste Management Center. This strengthens coordination between government agencies, regional authorities, and businesses and makes it possible to introduce unified approaches and digital traceability.

One of the key objectives is to create digital waste passports, monitoring systems, a reliable database of waste management infrastructure, and an electronic marketplace for secondary resources. Waste should become a manageable flow and, wherever possible, a raw material for new production.

Rural areas are another important focus, as waste collection and removal services remain unevenly developed there. Together with central and local government authorities, we need to expand access to these services for approximately 7.4 million people, including through digital management models.

— Despite the projects and figures, public trust in the system remains relatively low. What can restore that trust, and why should the recycling fee be viewed as an environmental policy instrument?

Trust is built not through statements, but through consistent work and transparent results. We understand that the public still has questions about the history of the recycling fee. That is why it is important to show how much money has been collected, where it has been allocated, which projects have been financed and commissioned, and how much waste has actually been recycled.

The purpose of the mechanism is not simply to collect money. Once vehicles, machinery, packaging, tyres, batteries, and electrical equipment reach the end of their useful life, the country must have the infrastructure and facilities needed to collect and recycle this waste safely.

Every project goes through a selection process, financial assessment, contract signing, construction, and commissioning. The funds remain within the state system: they are used for environmental purposes established by law and also flow into the national budget through dividends and taxes.

Clear, verifiable results of this kind should form the foundation of public trust.