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Carbon border adjustment mechanism will harm Russian-EU trade, minister warns

Many countries and enterprises are facing the risk of losing some their profits, Russian Minister of Economic Development Maxim Reshetnikov said

MOSCOW, July 24. /TASS/. The introduction of a carbon border adjustment mechanism developed by the European Commission could harm Russia’s trade with the EU, Russian Minister of Economic Development Maxim Reshetnikov said.

Furthermore, "many countries and enterprises are facing the risk of losing some their profits, which could be spent on modernizing production or fulfilling climate projects," Reshetnikov said, according to a statement of the Ministry of Economic Development.

On July 23, Reshetnikov met with First Vice President of the European Commission Frans Timmermans in Naples.

"A multifaceted approach to undertaking climate commitments will help to avoid negative consequences," the ministry said, citing Reshetnikov. "The platform of the United Nations Framework Convention on Climate Change is the best suited for their development."

"A globally significant and effective solution to climate problems can be reached only through cooperation, not through rivalry. This is confirmed by a remarkable scale of industrial production in Russia and the EU. We share the European continent with you, we are neighbors and we should cooperate closely on the whole range of these issues," the statement said.

Russia more than many other countries has reduced greenhouse gas emissions, the minister said. These emissions have been cut by half - from 3.1 bln tonnes of CO2 equivalent to 1.6 bln tonnes compared to the 1990 figures.