Russia and Kazakhstan both have green taxonomy models in place which regulate aspects of environmental activity. Their experience is of relevance to other Eurasian Economic Union (EAEU) member states, where there are plans to do the same. It is vital for the countries to consolidate efforts to develop a common policy, as well as a legislative framework for the climate and environment. That is according to experts, figures from federal government agencies, and representatives of non-profit organizations from across the EAEU, who were speaking at a session entitled The EAEU’S Climate Agenda: New Trends and Practical Solutions. The event took place as part of the Eurasian Economic Forum.
KEY CONCLUSIONS
Russia and Kazakhstan’s green taxonomy experience is set to be applied more widely across EAEU member states
“With regards to a green taxonomy, two member states of the union have this already – Russia and Kazakhstan. It is proposed that this will provide the basis for a common [model – ed.],” Andrey Sharonov, Chief Executive Officer, National ESG-Alliance.
“We have seen numerous projects which have reduced carbon dioxide emissions. However, if you discuss them with those abiding by common global methodologies, <...> they will say, ‘No, of course these aren’t green [technologies – ed.]. You are recovering associated gas. It’s good you’re doing that, but you are producing hydrocarbons – we cannot recognize it as green.’ We therefore believe that these projects need support and attention from the market in order for us to achieve targets related to the decarbonization of our economy. We have also included them in the national taxonomy, but have highlighted them in the chapter on adaptive taxonomy. <...> We discussed [this – ed.] <...> at the Economic and Social Commission for Asia and the Pacific together with representatives of the Asia-Pacific region, where it received an impressive response. <...> A taxonomy model for the EAEU holds potential. <...> We can see that the structure of each country’s economy is fairly similar. It appears we all recognize the specificities of and potential for reducing emissions, while appreciating that we cannot get by on renewable energy sources alone. Therefore, our document will be of relevance to everyone. <...> We have taken what was done in Russia and Kazakhstan as the basis,” Alexey Miroshnichenko, First Deputy Chairman, VEB.RF - Member of the Board, VEB.RF.
PROBLEMS
EAEU member states’ legislative frameworks and climate regulation policies are not always compatible
“During the implementation of the roadmap, the national legislation of EAEU member states pertaining to climate regulation was analysed. The aim was to prevent the emergence of barriers to trade. In order to eliminate said barriers, a common carbon unit market would be the most preferable option. In order to establish this, we need to develop and implement common regulation on matters related to infrastructure. In addition, we need to ensure that industry-specific decarbonization plans are aligned in terms of intensity. If we don’t do this, we won’t be able to reach the target price for a carbon unit and have a proper market,” Andrey Slepnev, Member of the Board, Minister in Charge of Trade, Eurasian Economic Commission.
“We need to work together and put forward a common negotiating position. <...> We need to team up with our colleagues from the EAEU, and create a common position,” Ilya Torosov, First Deputy Minister of Economic Development of the Russian Federation.
“In 2021, member states of the union declared their intention to classify the climate agenda as a priority. A roadmap was drafted by 2022. Individual states are taking their own measures to keep up with global trends to do with climate regulation in economic processes. A major challenge for the union is emerging. This is related to the need to coordinate and harmonize policies in this area that the union should adopt as a single economic and political entity,” Andrey Sharonov, Chief Executive Officer, National ESG-Alliance.
SOLUTIONS
Developing common approaches and applying the most successful case studies in EAEU member states
“There are a number of fairly inexpensive ways of reducing emissions. <...> I propose that you join the global initiative to reduce methane emissions by 2030. Then there is diversification and renewable energy – you have sufficient wind and solar energy in the regions. <...> We are ready to work with you and take our cooperation to the next level in order to achieve more ambitious goals,” Simon Steele, Executive Secretary, Secretariat of the United Nations Framework Convention on Climate Change.
“We are ready to discuss the establishment of a Eurasian centre of excellence for matters concerning the climate. <...> We need to establish a Eurasian fund of sustainable financing. <...> The idea to establish a Eurasian school of ESG transformation has also been voiced; this would help companies prepare for the energy transition,” Aidar Kazybayev, Chairman, National ESG Club of the Republic of Kazakhstan.
“The producer should not be the only one who pays – the consumer who creates the demand should as well. It seems to me that this is also an important aspect for our country. We could consolidate views on this matter,” Ekaterina Salugina-Sorokovaya, First Vice President, Gazprombank.
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