ENERGO: Russian government to launch "green" certificates trading

The Russian government will establish a trading system for "green" certificates by 2023, according to the announcement by Deputy Prime Minister Alexander Novak.

As covered closely by bne IntelliNews, the demand for green energy in Russia is booming, with the largest industrial majors closing bilateral green energy contracts with local utility majors, while the policy framework for CO2 trading is catching up. 

Previously the national green certificates system was expected to be launched in 1H22. The "green" certificates confirm the origin of power generation, and according to Novak, the state-run system could cover 400 TWh of power (40% of Russia’s total, hydro and nuclear, as estimated by BCS Global Markets). 

"Zero-emission generation companies may benefit from the roll-out of green certificates trading, but we do not expect any significant price impact," BCS Global Markets analysts commented, seeing the news as potentially supportive for RusHydro hydropower holding, En+ energy major and Rosenergoatom nuclear generation agency.

While the mechanism is being created to meet the requirements for exporters (if cross-border carbon regulation applies), there are still no details on the plan. Demand may come from exporters if cross-border carbon regulations are introduced by the EU.