Green Agenda in Russia in New Political Epoch

The 24 February 2022 events were to lead to radical changes in Russia’s green course among other things.

It seemed at the beginning of the year that the “green fashion” had already settled firmly in Russia. Statements were made constantly in the highest echelons that Russia would not stand aloof from the “triumphant march” of ESG values across the globe and was already getting actively involved in the process. The EU intention to launch the CBAM mechanism gave more arguments to “green” agenda supporters who called for immediate strengthening of the focus on climate in Russian energy and industry in general.

However, the beginning of the special military operation in Ukraine led to unprecedented worsening of relations with the West, including the EU. Naturally enough, the green agenda issue arose among others. The CBAM mechanism was virtually forgotten – because even without climate-based discrimination the volume of Russian exports may be minimised for political reasons. Besides, Western companies one by one began to leave Russia – and green companies among the first to do so (a vivid example is the closing by Denmark’s Vestas of a plant producing blades for windmills in Ulyanovsk, whereas earlier it had got serious incentives from the government).

Energy conservatives began persuading the Cabinet to support conventional energy in a period of heavy sanctions and give up for a while dangerous experiments intended to alter the energy balance.

However, the camp of “green dogmatists” does not at all seem paralysed. It keeps on making up new arguments in favour of maintaining the trend towards ESG. It is said, for example, that Asian countries admit that the West is right in matters of climate and are also introducing elements of carbon regulation. Therefore, the pivot to the East will not permit ignoring the green agenda.

The government hears such arguments. The Cabinet has approved rules to set up and keep a register of carbon units. An experiment in limiting greenhouse gas emissions started in the Sakhalin Region on 1 September 2022. The National Mercantile Exchange launched trade in carbon units in the form of commodity auctions on 26 September. In reality, therefore, the fight between the two camps continues. Each has its own pressure groups and serious beneficiaries behind it.

The new report covers the following subjects:

Current status of the climate debate in Russia

• New arguments of the antagonistic camps

Emerging legal framework for carbon regulation in Russia

Key regulators of the green agenda:

• Institutions and persons

Main lobbyists for ESG subjects:

• Green financiers, waste reform promoters, electric transport manufacturers, agricultural producers

Hope for the sequestration potential of Russian forests

• Debate about the prospects of forest climate projects

Future of the green agenda in the modern political situation

Contents of the report: