The government is preparing a Russian version of the carbon levy

The Russian government has started drafting a national version of the carbon tax, which is an analogue of the mechanism developed in the EU to levy for carbon dioxide emissions into the atmosphere. This was reported by “Vedomosti” with reference to two federal sources, as well as to an interlocutor familiar with the situation. This information was confirmed by a representative of the United Metallurgical Company (OMK).

According to the interlocutors of the publication, the government plans to create working groups with the participation of business representatives to discuss this initiative in the near future. According to one official, the development of the mechanism will take 1-1.5 years. One of the government’s interlocutors explained that the pace of development of the climate agenda could accelerate at any moment. He noted that no one is immune from unexpected decisions of the EU or the United States. The key task is to prepare national regulation, achieve its recognition at the international level and establish the offset of payments for CO2 emissions in Russia by the European carbon control system.

According to one of the federal officials, the government is now trying to determine the format for the implementation of the Russian version of the carbon levy. Three alternatives are being considered:

  • the business will pay a fee at a specific rate for exceeding the emission thresholds;
  • in the implementation of the emissions trading system;
  • in a combination of the above two options. However, there is still no certainty with whom the carbon tax will be applied: only to exporters, in order to protect them from having to pay a duty for importing products into the EU, or other market participants.

A source close to the government noted that neither the government nor business is interested in the EU collecting payments from Russian exporters at its own discretion. The key logic is to stay ahead of the European Union with the development of national regulation. The authorities are also interested in making the tax comfortable for business, and Russian measures were on a par with European ones. An OMK representative believes that it is better to pay taxes to the Russian budget on the condition that “these payments will be exempted from cross-border tax.”

Earlier, the head of the Ministry of Natural Resources of Russia, Alexander Kozlov, estimated the damage to the business of the Russian Federation from the EU carbon tax at € 3 billion annually.

On the prospects for the implementation of the mechanism – in the material “Kommersant” “The carbon tax scares Russia slowly.”

Leave a Reply

Your email address will not be published. Required fields are marked *