Page 4 - FSUOGM Week 37

FSUOGM COMMENTARY FSUOGM

Russia looks to jump-start

gas vehicle market

Russia sees clear economic incentives for expanding the NGV market

RUSSIA RUSSIA has rolled out a number of subsidies countries. And while the government appears to
over the past year as it looks to kick-start devel- be taking climate change much more seriously in
WHAT: opment of a market for natural gas-powered recent years, especially in light of Siberian wild-
Russia has introduced vehicles (NGVs). fires and the melting of Russia’s permafrost, its
subsidies for the NGV NGVs have been have been touted an alter- commitments under the Paris Agreement are so
sector. native for lowering transport sector emissions modest that it has already almost met them.
to electric vehicles (EVs). Where there is some As such, Russia is interested in NGVs pri-
WHY: interest in electric cars in Russia, the government marily for economic gains. Gazprom, which is
Supporters say gas as a sees NGVs as the better choice and is setting pol- unsurprisingly the sector’s main advocate, points
vehicle fuel is not only icy accordingly. to the lower cost of gas compared with conven-
cleaner but also cheaper Russia has the largest gas reserves in the tional motor fuels. It estimated earlier this year
than traditional fuels. world – estimated by BP at 38 trillion cubic that using gas was two to three times cheaper
Russia also has the gas metres proven. It has an extensive gas distri- than gasoline.
supply and distribution bution network already, whereas it would have
network to meet demand. to build infrastructure for electric cars in most Subsidies
areas from scratch. Subsidies for the sector have been announced as
WHAT NEXT: Supporters of NGVs also point to their a part of a new transport strategy approved by
For the large-scale NGV environmental benefits. According to Mos- the government in March, and will be provided
market to become a cow-based business management consultancy for vehicle owners, manufacturers and infra-
reality, infrastructure and Creon, vehicles than run on gas rather than tra- structure developers.
the number of NGVs must ditional fuels such as gasoline and diesel emit Russian Prime Minister Mikhail Mishustin
expanded in lockstep. 20-25% less carbon emissions. signed a decree in June under which the govern-
However, ordinary Russians are not as cli- ment will cover 60% of the cost of converting a
mate conscious as motorists in many European vehicle to run on gas. Previously it footed only

P4 www. NEWSBASE .com Week 37 16•September•2020