Page 133 - RusRPTNov21

would reduce the demand for hydrocarbons.
European emissions allowance prices rose to USD 75/t at the start of October. . This happened as European coal generation ramps up amid soaring gas prices. And the UK emissions allowance prices rose above USD 100/t at the end of September.
The Russian Council of Industrialists and Entrepreneurs (RSSP) sent a resolution on climate regulation to the government, Interfax reports. RSPP wants to see the Russian government tackle the European carbon tax through the WTO and provide support for companies implementing climate-related projects (such as afforestation and public utilities). RSPP suggests integrating the climate reporting of parent and subsidiary companies to lower the administrative burden. The suggestions by the business representatives were followed up on at the meeting between President Vladimir Putin and the government. Putin said that tackling the climate change issue should not be burdensome for businesses and the population.
Germany is prepared to provide EUR 350mn financing for international green hydrogen energy projects or R&D by 2024, Interfax reports, citing the nation’s economic ministry. Commercial companies might receive EUR 15mn of non-refundable financing per project, while R&D projects could be eligible for EUR 5mn per application. The government press release stated that supporting hydrogen projects outside Germany was part of implementing its national hydrogen strategy. However, blue hydrogen is not covered by this new guideline.
290 global airlines signed an International Air Transport Association resolution to reduce the global air transport industry’s emissions to 0 by 2050. This might be achieved through sustainable fuel (SAF, 65%), new aircraft technology, efficiency improvements (3%) and new fuel types (electric and hydrogen power, 13%), carbon capture (11%) and offsets (8%).
Novatek’s CEO guided that its blue hydrogen/ammonia facility might launch in 2026-27, Interfax reports. This is slightly behind our expectation (we expected commissioning to start gradually from 2025), but no other details have been disclosed. To recap, the project is undergoing a pre-FEED study that is to be completed by YE21.
MinEconomy is not to consider the prospect of 2060 carbon neutrality as part of Russia’s 2050 carbon strategy. MinEconomy has circulated a new version of Russia’s draft carbon strategy to 2050 within the government, Kommersant reports. The document contained two scenarios: inertial and intensive. The former assumes 8% and 25% GHG emissions growth by 2030 and 2050, respectively, vs the current level. The latter (intensive) scenario foresees 0.6% emissions growth by 2030 and a 79% cut by 2050. It also stated that carbon neutrality in Russia might be achieved in 2060. However, later, MinEconomy said the government would not consider the prospect of 2060 carbon neutrality as part of Russia’s 2050 carbon strategy.
24 new signatories have joined the Global Methane Pledge. The document, which targets a 30% reduction in methane emissions by 2030, was announced in September (see our Oil and Gas – ESG Weekly, of 20 September). It is to be launched at the climate summit in Glasgow and
133 RUSSIA Country Report November 2021 www.intellinews.com