The Russian Union of Industrialists and entrepreneurs have written to the Ministry of economy proposals on ways of reducing the risks from the possible introduction of a European Union cross-border carbon adjustment. This rapprochement of national standards of carbon reporting with international, support the reduction of carbon intensity of Russian products. In the worst case, it seems that Russia expects the conduct of proceedings with the EU at the WTO and even the imposition of retaliatory measures. According to “Kommersant”, the first consultations between Russia and the EU on the subject of the introduction of new regulations will be held September 8, the price is the loss of the Russian companies-exporters from the new European regulation, the size of several billion euros per year.At the disposal of “Kommersant” was the answer of the RSPP to the letter from the economy Ministry with a proposal to conduct an analysis of carbon intensity of Russian exports to “create arguments to defend the Russian position” on the negotiations with the European Union (see “Kommersant” on June 11).Recall that approved in the EU program “Green course” includes the introduction of cross-border carbon adjustment (TUR) for the individual sectors of the economy in 2021. While the specific mechanisms are unclear, but they are already causing concern to the Russian business, as exports from Russia is one of the most carbon-intensive in the world. The evaluation by KPMG (see “Kommersant” on 28 July), losses in case of introduction of the mechanism can be as high as €4-6 billion per year. In the letter RSPP in the economy by estimates of Institute of economic forecasting Russian Academy of Sciences, according to which the losses of the exporters could amount to €2.8 to 3.6 billion per year, with the price level per unit of emissions of €20-25 per ton of CO2 equivalent. Note, the draft EU budget for 2021-2027 years, says that the introduction of the TOUR is to provide €5 billion to €14 billion per year, thus the share of Russia in this amount is consistent with the share of Russian exports to European imports.”The main aim of TOUR is to support the competitiveness of European industrial companies through the creation of barriers and burdens for manufacturers in other countries”,— consider in the Union. As a response there suggests creating a working group under the leadership of Deputy Minister of economy. She would including to participate in consultations and negotiations to “prevent the creation of a normative framework at the international level for the imposition of restrictions of international trade on climate grounds.” Also among the proposals is the development of the national carbon reporting standards and their harmonization with international, support projects to reduce greenhouse gas emissions, encouraging the introduction of best available technologies (BAT), support of the renewable energy sector, as well as “the advancement of the position of the maximum to��of pensaci of carbon intensity of Russian products a high absorption capacity of forests”. (Note, however, that in accordance with a number of studies of Russian scientists, including biological faculty, Moscow state University, the absorption capacity of the Russian forests will gradually decline and by 2050 the function “filter” can be reduced to almost zero).Finally, as drastic measures RSPP not rule out at various venues (WTO, ISDS) proceedings, with the EU and the adoption of retaliatory measures to protect Russian producers. Simultaneously, the business of the Association propose to carry out further negotiations with the EU, and also to promote the necessity of the abolition of customs duties for low-carbon goods.According to “Kommersant”, while semi-official consultations between Russia and the EU on the introduction of the TOUR will take place on 8 September. The organizer on the part of the EU is the European Roundtable on Climate Change and Sustainable Transition (research center, which is supported by the governments of Germany and France, as well as a number of European energy and metallurgical, chemical and cement companies), Russia — RSPP, and the Institute of problems of natural monopolies. Will participate representatives of ministries, companies and business associations from both sides.The economy Ministry in an official statement on July 29, has already named his starting position: “Border carbon corrective mechanism should be non-discriminatory, relevant WTO rules and not creating barriers in mutual trade”. The Minister of natural resources Dmitry Kobylkin 30 July reported plans to create a platform for discussion of the possible impact on Russian companies a carbon tax in the EU.A number of experts (including the adviser to the Russian President on climate Ruslan Edelgeriev, see “Kommersant-Online”, of 11 June) as the most effective response plans for the TOUR called the introduction of a “price on carbon”, as well as the adoption of a law aimed at reducing emissions and promoting the principles of “polluter pays” for greenhouse gases. In his letter to the RSPP such proposals does not support, arguing that “the overpayment of the Russian economy in case of introduction of the domestic fiscal instruments may amount to almost 1 trillion rubles annually”.Head of the Department of world economy higher school of Economics Igor Makarov notes that the government approved the introduction of carbon prices in the country by far is considered as the damage to the economy of the Russian Federation. “But the loss of the largest carbon-intensive companies is not equal to the loss of the country. The carbon price is an instrument not of withdrawal, and redistribution from the more “dirty” to “cleaner” industries, a tool for improving the efficiency and diversification of the economy”,— said the expert. Fee is the same for carbon in the EU, he said, is a “net loss for the Russian economy, and avoid them without the introduction of a price on carbon internally is almost impossible.”Angelina Davydova
