Ministry of Economic Development of the Russian Federation
Ministry of Economic Development of the Russian Federation
The Ministry of Economic Development discussed with business the place of Russia in the market of carbon units
5 August 2021 13:10

On August 3, 2021, the Minister of Economic Development of the Russian Federation Maxim Reshetnikov held the second meeting of the Expert Council on Sustainable Development under the Ministry of Economic Development of Russia. The main issue on the agenda was preparation to the 26th Conference of the UN FCCC Parties in Glasgow and business proposals on Article 6 of the Paris Agreement.

A substantive discussion took place, in the course of which representatives of leading Russian companies and other experts expressed their positions on the rules of implementation of Article 6 of the Paris Agreement, for which the Ministry forms Russian approaches. Representatives of such companies as Severstal, NLMK, Metalloinvest, SIBUR Holding, Gazpromneft, as well as the Russian Council of Industrialists and Entrepreneurs (RCIE) shared their points of view.

They actively discussed some specific parameters of the rules of implementation of Article 6 of the Paris Agreement that will actually determine the outline of the future cross-border market of the carbon units: usage of the Kyoto Protocol legacy, climate projects baselines determination methodologies, usage of various metrics, allowable allocations.

“Our position in the climate negotiations will depend on how we see the future place of Russia at the emerging global carbon market,” said Maxim Reshetnikov.

“Active participation of Russia in development of the rules of implementation of Article 6 of the Paris Agreement is a necessary condition for integration into the global climate agenda and effective participation of Russian business in it. Mechanisms stipulated by Article 6 will to a large extent define the general outline of requirements for measures aimed to reduce emissions and increase absorption of greenhouse gases, both at the global and the national levels. Therefore, it is important to ensure that specifics of Russian projects, as well as the ability of maximization our country's potential fulfillment are taken into account in the course of forming of such mechanisms. The largest Russian companies pay great attention to these issues,” said Sergey Tverdokhleb, executive secretary of the Russian Union of Industrialists and Entrepreneurs Committee on Climate Policy and Carbon Regulation.

“The global climate agenda is one of the factors that will have a significant impact on Severstal's activities. We take these issues very seriously and do our best to decarbonize our business. Our company has set some targets to reduce the carbon intensity of our products by 3% by 2023 and by 10% by 2030 in respect to the 2020 level. At the same time, it is important that these goals are supported by specific production and technical measures.

Severstal stands for increased availability of low-carbon technologies, and we are confident that this can be achieved only through development of a global regulatory framework and consolidation of agreements by means of legal documents such as the Paris Agreement, and, in particular, its Article 6,” said the director on labor protection, industrial safety and ecology of JSC Severstal Management Albert Lyaskovsky.

Russian business representatives generally approved the approaches presented for the discussion. The Minister thanked the Council members and other invited persons for the expertise provided, as well as for high assessment of interaction between the Ministry of Economic Development of Russia with the business.

In May 2021, more than 20 new Russian and foreign companies and organizations joined to the renewed composition of the Expert Council for Sustainable Development, chaired by Minister Maxim Reshetnikov. Thus, nowadays, the Council includes almost 60 companies and organizations from metal production, nuclear energy, chemical, telecommunication, banking, retail and other industries.

The Council was created in December 2020 as a platform for regular interaction between the Ministry and the Russian business on a “sustainable” agenda. Jointly with the company representatives, the Ministry is working to discuss the social and environmental aspects of doing business, as well as the private sector contribution to the achievement of the UN Sustainable Development Goals.

Дата публикации: August 5, 2021
Font type:
Letter spacing:
Font size:
Site color: