Page 13 - FSUOGM Week 27 2021

FSUOGM ENERGY TRANSITION FSUOGM

Putin signs law on GHG

monitoring

RUSSIA RUSSIAN President Vladimir Putin signed into impose emissions on cities with very high levels
law on July 2 a requirement for businesses to of air pollutions. In turn, local authorities can
Russia's Paris report their greenhouse gas (GHG) emissions, introduce quotas for different industries in their
Agreement in a move hailed as Russia’s first step towards car- area. Enterprises that fail to adhere to their quota
commitments are bon regulation. may have to invest in “compensation measures,”
modest. Russia joined the Paris Agreement in 2019, or green projects.
requiring it to reduce its GHG emissions by 70% “It’s not as ambitious as it could be. But com-
by 2030, with emissions in 1991 serving as the pared with what there was, or rather what there
baseline. But the country should easily clear wasn’t, this is very good news,” a spokesperson
this target given the de-industrialisation and for Greenpeace Russia said. “An accounting
increases in efficiency and environmental care system is being introduced, carbon dioxide is
that followed the collapse of the Soviet Union in becoming a substance subject to government
1991. regulation. An emissions accounting and reduc-
The new legislation will put in place manda- tion system is emerging. This is a prerequisite for
tory carbon reporting standards for the biggest a greenhouse gas emissions trading system.”
GHG emitters at the start of 2023. The data will The neighbouring EU has its own emissions
be collected and reviewed by a government body. trading system for carbon, and is looking to
The new legislation will also enable Russia to introduce changes that expand its scope. ™

Russia to see "redistribution of

investment" in energy: Novak

RUSSIA RUSSIAN Deputy Prime Minister Alexander companies have announced plans to build their
Novak has said he expects Russia’s energy sector own power plants on renewable sources in order
Novak has in the to see a “redistribution of investment” as com- to be able to provide the ‘greenness’ of their
past urged a cautious panies ramp up spending on renewable energy products.”
approach to the energy and carbon capture and storage (CCS) projects. Novak has in the past urged a cautious
transition. Novak said at an investment forum hosted by approach to the energy transition. He warned in
Russia’s central bank that hydrocarbons would June that pressure to decarbonise global energy
continue to dominate the global energy mix for quickly could cause a spike in oil prices as a result
decades to come, but said there would be a shift of declining investment. Russia would stand to
in investment in Russia. gain in this scenario, as it is unlikely to make the
“Energy companies provide about 20% of all same cuts to spending that some competing oil
investment in Russia. They plan their business producers will make.
now in light of the climate agenda,” Novak said. Russia aims to expand the share of wind and
“This investment will remain in the [energy] sec- solar power in its energy mix to 10% by 2040
tor, but it will be diversified over time.” from less than 1% today, but achieving this will
Russian oil and gas companies are also work- cost RUB1 trillion ($13.7bn) in private-sector
ing to minimise gas flaring and have undertaken investment, Novak said. The share of atomic
research into capturing and storing CO2. One energy is also expected to grow to 25% from 20%
of the most active players in the decarbonisation in the same period.
space is Novatek, which is also studying the pro- Russia produced over 1 trillion kWh of elec-
duction and use of hydrogen at its LNG facilities tricity last year, of which roughly 40% came from
in the Russian Arctic. nuclear, hydropower, solar and wind. Of the new
“Our energy companies are actively diver- capacity that was built last year, 60% was renew-
sifying their activities,” Novak said. “Some oil ables. ™

Week 27 07•July•2021 www. NEWSBASE .com P13