Russia intends to launch a pricing system for greenhouse gas emissions, but the discussion of this system will be “difficult”, said the head of the Ministry of Economy Maxim Reshetnikov. The innovation is being prepared as part of an experiment to regulate CO2 emissions, which is being carried out on Sakhalin.
Using this experiment as an example, the minister explained, the Russian authorities will launch their CO2 pricing system. “And here we have to go the way that our European colleagues have been following 20 years, in a fairly short period of time, in a short time,” said Mr. Reshetnikov at the international conference “Oil and Gas of Sakhalin” (quoted by Interfax) …
According to the minister, the discussion of the pricing system will be “difficult”, as several options are being considered. In particular, marginal pricing is possible by analogy with Europe, when 85% of quotas are free, and 15% of quotas “go to the market, and due to them the highest price we hear about, € 50-55,” explains Maxim Reshetnikov.
“Or we will still go to the average pricing system. Because even if we divide € 50-60 by the total (greenhouse gas emissions.— “B”), we get € 5–7 per tonne of CO2. And these are completely different numbers. They will have a completely different effect on the economy, ”added the head of the Ministry of Economy.
In July, President Vladimir Putin signed the Law on Limiting Greenhouse Gas Emissions, which established the framework for carbon regulation. The Ministry of Economy has also submitted to the government a bill on the introduction of experimental carbon regulation in the Sakhalin Oblast. The main goal of the experiment is to achieve carbon neutrality of Sakhalin in 2025. In August, the Ministry of Economy presented a bill on penalties for violations in emissions reporting.
Read more about the experiment in the article “Kommersant” “The carbon experiment was written into the law.”