Russia to speed up work on emissions audit due to EU “carbon tax”

The Ministry of Economic Development proposed to start accreditation of Russian organizations that will be able to confirm the data of Russian companies on greenhouse gas emissions by January 1, 2022. This follows from the draft amendments to the department's order on the approval of accreditation criteria. Initially, organizations claiming the right to conduct validation and verification of carbon emissions could only apply from the beginning of the new year.

The need to speed up the accreditation process at the Ministry of Economic Development is explained by the preparation of the European Union for the introduction of a "tax" on the carbon footprint. In mid-July, the European Commission presented a draft cross-border carbon mechanism, according to which importers of cement, fertilizers, electricity, iron, steel and aluminum will be required to buy certificates for the right to import these products into the EU starting from 2026 (this will be analogous to a carbon tax). According to the Ministry of Economic Development, the additional financial burden for Russian exporters as a result of the introduction of the EU carbon tax will be €50.6 billion by 2030. Already from 2023, importers will be required to submit reports with verified information on the carbon intensity of products imported into Europe.

“Under such conditions, there is an urgent need to verify the carbon reporting of Russian exporting organizations. At the same time, in the context of the covid-19 pandemic, Russian organizations are facing problems in validating and verifying carbon reporting from specialized foreign companies,” the memo to the draft order says.

The Ministry of Economic Development adds that business insists on speeding up the accreditation process. “The Ministry of Economic Development of RUSSIA and its subordinate Rosaccreditation receive requests from the business community about their readiness to undergo accreditation in the national accreditation system as bodies for the validation and verification of greenhouse gases until January 1, 2022,” the agency reports.

As RBC was told in the press service of Rosakkreditatsiya, at the moment six organizations have applied to the agency and are ready to apply for accreditation.