REM: Russian regions could set carbon quotas and trading schemes

Russian regions aiming for and working on carbon neutrality programmes would be able to set their own quotas and trading schemes for emissions of greenhouse gases (GHGs) for companies, according to the Minister for Economic Development Maksim Reshetnikov's announcement at the Ecumene 2021 congress.

As followed by bne IntelliNews, Russia is consolidating its state ESG and carbon neutrality policy on multiple levels, as Moscow belatedly prepares to tackle the EU carbon tax introduction and other "green" challenges. 

Reshetnikov also said that the government is currently working on the adjustments to the law on emissions and the verification of emissions is set to be launched, along with the planned start-up of carbon units trading.

The minister has also confirmed that Russia and Kazakhstan are currently discussing joint carbon regulation. Previous reports suggested that Russia is calling for the consolidation of carbon regulation among the EEU member states (Eurasian Economic Union, comprising Kazakhstan, Kyrgyzstan, Russia, Belarus and Armenia).

"The news is in line with the recent announcements by the ministries, as is the launch of the discussion on a carbon tax in Russia and the possibility of joint decisions on carbon regulation in Russia and Kazakhstan," VTB Capital (VTBC) analysts commented on October 4.

To VTBC analysts it "seems that Russia’s long-term plans are going to account for the risks of the energy transition, which was not the case previously, while companies on their own have been acting to improve their carbon footprint".