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boost to the economics of such projects in the country.
· Global Methane Pledge. Though Russia did not sign the agreement,
we expect a step-up in capital market pressure on the largest emitters (oil & gas, coalmining, agriculture) to meet the 30% reduction pledge by 2030.
Analysts found value in the presentations offered by Russian government and corporate officials. The most notable takeaways were:
i) the detailed CO2 reduction strategy for the broad energy sector presented by deputy minister Pavel Sorokin;
ii) the 97GW renewable capacity target of MinEnergy by 2050,
iii) the universal readiness of the corporate sector to switch from coal to gas (RusHydro, EN+, metals & mining companies) if gas supplies become available (hydrogen is a long-term option as well);
iv) the high readiness of corporates for climate projects and the associated voluntary carbon market integration; and
v) the extensive interest of Russian corporates to CCS projects, on which Gazprom Neft has made the most progress.
Russia’s carbon neutrality must be achieved by 2060, Russian President Vladimir Putin said at the G20 summit via video link on Sunday, October 31. “Counting natural gas, the lowest-carbon fuel among hydrocarbons, the share is 86%”, Putin noted. And to achieve it, among other tools, a new program to improve the energy efficiency of the economy for the period up to 2035 will be implemented, RIA Novosti writes.
Over 15,000 wildfires engulfing an area over 10mn hectares occurred in Russia in 2021, the press service of the Ministry of Emergencies told TASS. The wildfires covered an area over 10mn hectares, 68 municipal emergencies, eight regional emergencies and five inter-regional emergencies were declared in 23 regions. The Ministry is engaged every year in extinguishing forest fires during the fire season. 50,000 individuals and 11,000 equipment units participated in forest fires control, along with 38 aircraft.
According to the objective scenario in Russia’s draft strategy for low-carbon growth by 2030, electricity prices could rise by 4%, said the chairman of the Ministry of Economic Development, Maxim Reshetnikov, who made this prediction, Kommersant reports. Prices are predicted to grow by 26% by 2050, according to him. The carbon intensity of the country’s economy is predicted to drop by six times by the same year. “In the target scenario, the balance shifts more aggressively, renewable energy sources are introduced more aggressively, and the atom is introduced more aggressively, all of which will require more expenditures that will pay off. That is, this is not a cost of CO2, average pricing, or marginal cost; rather, it is a technical transition that is causing us to shift from more CO2-intensive to less CO2-intensive, but more expensive technologies,” Reshetnikov explained. According to the project’s
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