28.09.2021 10:20

Sakhalin: development of a system for pricing CO2 emissions

Russia will develop a pricing system for greenhouse gas emissions during the implementation of an experiment to reduce emissions in the Sakhalin region. This was announced by the head of the Ministry of Economic Development of the Russian Federation Maxim Reshetnikov, speaking at the Sakhalin Oil and Gas 2021 forum.

As Reshetnikov noted, "it is very important that eventually, using the example of this experiment, we will launch our own pricing system for CO2. We have to go through all these issues at the Sakhalin experiment."

According to him, the Russian authorities will have a difficult dialogue about how the pricing for CO2 emissions in Russia will be.
The minister explained that in the European quota trading system, 85% of quotas are free and only 15 % of quotas go to market. This is the reason why the highest price is formed – €50, €55 or even €63 per ton of CO2. However, if we go to the average pricing system, we get €5-7 per ton of CO2, and these are completely different figures that will affect the economy in a completely different way.
In addition, discussion on systems and methods for allocating CO2 quotas will be held.

"What should we use as a basis: the historical principle of allocation, the world's best benchmarks, or our best available technologies? How to take budget efficiency into account? Should we take the amount of taxes that are paid to budgets of all levels into account when allocating quotas? We have to answer all these questions, we have to work out this system," Reshetnikov stressed.
Region: Russia
Source: Ministry of Economic Development of the Russian Federation, TASS
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