Russian-German Commerce Chamber Pushes For Russian-EU Carbon Dialogue

Russian-German Commerce Chamber Pushes for Russian-EU Carbon Dialogue

The Russian-German Chamber of Commerce on Thursday called for close cooperation between Russia and the European Union on climate as well as building effective dialogue on carbon regulation

MOSCOW (Pakistan Point News / Sputnik - 15th July, 2021) The Russian-German Chamber of Commerce on Thursday called for close cooperation between Russia and the European Union on climate as well as building effective dialogue on carbon regulation.

On Wednesday, the European Commission published a draft cross-border carbon regulation after over a year of work on it. The document's goal is to prevent risks of carbon leakage. In particular, the commission suggests imposing a fee in the EU on the import of certain goods, including steel, concrete and fertilizers, whose production causes high carbon dioxide emissions.

"It is necessary to conduct a thorough analysis of economic and non-economic effects caused by the introduction of the Carbon Border Adjustment Mechanism (CBAM) both for the EU and its trade partners, as well as to build effective carbon dialogue between Russia and the EU with the involvement of all business and state parties concerned," the chamber said in a report "Climate and Sustainable Development: Opportunities for Cooperation between Russia and Europe."

The European green policy and rapid decarbonization threaten the supply of Russian energy resources to the EU, while the introduction of the European transboundary carbon tax in 2023 can be critical for the basic sectors of Russia's economy that constitute 40% of its exports, the chamber said.

To minimize the negative effects caused by the transboundary carbon regulation, a number of measures are needed, including the development of Russia's green investment market and carbon landfills system.