Draft greenhouse gas law impact

The new draft law on greenhouse gas emissions could have serious financial implications for companies with sizeable emissions.

The draft is an indication that the Russian government will be imposing individual emission limits (and charges) on companies. Direct regulations are not yet issued. But if the law is implemented, the Russian Government would get the following powers and authorities:

1.      to determine which greenhouse gases (hereinafter – the “GHG”) will be subject to state regulation;

2.      to establish limits on GHG emission;

3.      to determine the criteria under which the related activity of legal entities and individual entrepreneurs will be subject to state regulation;

4.      to determine the limits for issuance of GHG emission permits, the terms and procedure for submitting reports on GHG emissions, the specific cases requiring verification of (i) GHG emission reports and (ii) reports on realization of GHG reduction projects, and the procedure for such verification;

5.      to establish requirements for transactions with GHG emission reduction and absorption units;

6.      to set fees for GHG emissions and a relevant procedure for collecting such fees;

7.      to approve the rules under which a realization of GHG reduction projects is to be treated as GHG emission reduction;

8.      to establish federal and regional reporting criteria;

9.      to establish further responsibilities in the field of GHG emission

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09 october 2019

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