Page 11 - FSUOGM Week 23 2021

FSUOGM POLICY FSUOGM

Russia passes law on limiting

GHG emissions

RUSSIA THE Russian State Duma, in a third and final signature by President Vladimir Putin.
reading, has approved the law on limiting green- "Global challenges are very complex, chal-
The government has house gas emissions by private companies, set- lenging for all – for Russian business they are
been considering a ting up a GHG regulatory system in Russia and especially challenging, simply because of our
law on reducign CO2 encouraging ESG involvement, the Moscow economic structure," Envoy on Sustainable
emissions since the Times reports. Development Anatoly Chubais said at the Saint
start of this year. As reported by bne IntelliNews, Russian Petersburg Economic Forum on June 3, as cited
state energy policy is focusing increasingly on by the Moscow Times.
ESG, as Russia belatedly prepares to tackle the "Our businesses face a highly complicated
EU carbon tax introduction and other "green" problem which requires deep restructuring [of],
challenges. as I understand it, up to 100% [of our economy],"
Since the beginning of 2021 the Russian gov- he added.
ernment has been considering a law on reducing Previously Chubais proposed introducing a
CO2 emissions in the country, which would set green energy certificate trading system, which
mandatory CO2 reporting standards and tools would facilitate the construction of large-
to undertake carbon reduction projects with scale renewable energy sources (RES) capacity
clear follow-up. generation.
According to the bill passed, the companies Russia aims to increase its fossil fuel produc-
that emit more than 150,000 tonnes of CO2 (or tion tenfold by 2035 despite calls from Interna-
the equivalent mass of other GHGs) per year tional Energy Agency (IEA) experts to halt all
must limit their emissions as of 2023. Compa- new investments into coal, oil and gas. Russian
nies with 50,000 to 150,000 tonnes of emissions companies are also building new infrastructure
annually will have to report their emissions start- to produce more oil and coal, the Moscow Times
ing from 2024. reminds.
Recent reports suggest several initiatives are However, most of Russia’s regions are carbon
being developed at the same time, such as green negative due to their vast swathes of forest, which
certificates, a GHG emission reduction strategy absorb more GHGs than the regions can emit,
and an energy efficiency policy. Major state-con- according to the Deputy Prime Minister Victoria
trolled (Rosneft) and private (Lukoil) oil and gas Abramchenko. Only eight regions (most in the
majors are pledging to deliver green strategies. Far North and drought-prone areas) emit more
The bill indeed introduces a carbon credit than they absorb.
system, with companies able to receive "carbon However, the scientists warn that Russia’s
units" in exchange for investments in reforest- natural carbon emissions may increase rap-
ation, recycling, carbon capture or other initia- idly in the next few decades due to accelerated
tives aimed at fighting climate change. melting of the permafrost, which contains large
The bill will take effect after the approval methane deposits, as well as owing to events like
in the upper house Federation Council and forest fires.™

Week 23 09•June•2021 www. NEWSBASE .com P11