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The World Bank has offered Russia to introduce a carbon tax

02 декабря 2021
Views: 336

The World Bank offers Russia to introduce a carbon tax in industries with high greenhouse gas emissions, including the fuel and energy complex, to achieve carbon neutrality, the organization's report on the Russian economy says.

“The introduction of carbon prices is primarily expedient in the fuel and energy complex, transport and industrial production. First of all, the introduction of carbon prices in the fuel and energy complex, in transport and for large industrial enterprises should be considered. If carbon pricing covers carbon emissions in these sectors, it will cover 79% of all emissions in Russia”, the report says.

Clarifies that the price of carbon can be set in the form of a tax, a toll system, or both.

As an alternative, the WB proposes the use of trading system in quotas for greenhouse gas emissions. It works on the principle of "cap and trade": the government sets an aggregate emission limit for a number of polluting sites, which is then divided into quotas and distributed among the sites. If the level of emissions in production is higher than the level of quotas, then the site must buy a permit for additional emissions. Permits are often allocated free of charge in the first phase, but ultimately the organizers of such systems seek to distribute all quotas through auctions.

“Another way to introduce carbon pricing is through emissions-related fuel excise taxes and carbon taxes. Compared to other countries of the world, fuel excise taxes in Russia are very low, ”the report also adds.

In November, the Cabinet of Ministers adopted a long-term strategy for the low-carbon development of the Russian Federation until 2050. Its goal is to adapt the Russian economy to the global energy transition, reduce greenhouse gas emissions and achieve carbon neutrality by 2060. Key policy measures and specific investment projects to achieve these goals have not yet been identified.

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