RBC: First Deputy Prime Minister Belousov discussed cross-border carbon regulation in Russia
Andrey Belousov. Photo: Ilya Pitalev / RIA Novosti
The Russian government has identified a carbon “fundamental fork” for the country in a cross-border carbon settlement. First Deputy Prime Minister Andrey Belousov at a meeting on February 11 discussed the plan prepared by the Ministry of Economic Development for the implementation of the Low-Carbon Development Strategy until 2050, RBC reports.
The plan must be approved by March 1, in the future the document is expected to be updated annually. Belousov said that in the future Russia should introduce the circulation of emission quotas through tax regulation. “We need to decide for ourselves what is more acceptable, more profitable for us,” he said.
The head of the Ministry of Economic Development Maxim Reshetnikov during the meeting said that Russia does not perceive the carbon tax of the European Union (EU) as a factor in the “trade war”. This suggests that Moscow is not going to bet on challenging it in the World Trade Organization or introducing its own protectionist measures.
Alexei Mordashov, Chairman of the Board of Directors of Severstal, noted that a radical reduction in carbon dioxide emissions in steel production, compared with the usual development of technology, could double the cost of the product. Belousov pointed out that Russia will not gain anything from rising prices, so it should fit into the strategy and figure out how to minimize losses and maximize the effect.
Deputy Finance Minister Aleksey Sazonov said that the department was negotiating with the European Commission regarding which instruments the European Union could accept for offset. According to him, Russia can only use a direct verifiable carbon payment for exemption from paying the EU carbon tax.
The goal of achieving net zero greenhouse gas emissions by 2060 was set by Russian President Vladimir Putin in October 2021, after which the country's low-carbon development strategy was prepared. Reducing emissions implies the need to transform the energy sector using low emission sources.
