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Russian Economy Minister underscores importance of impartial carbon footprint calculation

"In recent years, many companies have upgraded production and Russian companies' carbon footprint is competitive," Maxim Reshetnikov said

MOSCOW, August 24. /TASS/. The carbon footprint of Russian companies should be calculated impartially when determining the carbon duty value to avoid unjustified advantages to be received by manufacturers from the European Union or other countries, Minister of Economic Development Maxim Reshetnikov told TASS in the interview.

"In recent years, many companies have upgraded production and Russian companies' carbon footprint is competitive. It is crucial to ensure that it should be calculated impartially and manufacturers in the EU or other countries do not get unfounded advantages. The CBAM [Carbon Border Adjustment Mechanism — TASS] draft offers no answers to the questions of what projects the companies will be able to count and what means of interaction for third countries [our] European partners may offer," Reshetnikov said.

"If the CBAM's real purpose is not the creation of new barriers in trade, but rather fighting climate change, then the carbon reduction per one invested dollar should be the chief parameter. In this respect, it is important for Russia to have a mechanism that will enable enterprises to use the money to cut carbon emissions inside the country. This will be the most effective solution in the struggle against climate change and for the global agenda, too," the Minister noted.

The mechanism is designed in such a way that it pegs the carbon tax to the actual carbon intensity of the product in question, Reshetnikov said. "The greater the emission of carbon dioxide from the industrial plant that has manufactured a certain product, the more the importer will have to pay. Respectively, the tax will vary from company to company, and even from industrial facility to industrial facility, even if two companies supply equal amounts of goods to the EU," he added.

The full text of the interview is available at the TASS website.