The Russian Energy Agency (REA) of the Russian Ministry of Energy has become a business programme partner of the Russian Energy Week International Forum, which kicked off today with representatives of key fuel and energy companies and the government authorities of Russia and other countries in attendance.
The key event of the programme for the REA’s participation on the first day of the Forum was the session ‘The Impact of Europe’s Green Pivot on Russian-European Cooperation in Energy’, at which REA General Director Alexey Kulapin made a presentation on the development of the Russian fuel and energy industry in the era of global decarbonization.
Kulapin noted that the green pivot that the European Union adopted in 2019, which aims to combat climate change and achieve carbon neutrality in the macro-region by 2050, poses urgent challenges to the Russian energy sector to adapt to the energy transition. Since Russia and the EU are long-standing trading partners, the new climate policy, and specifically the introduction of cross-border carbon regulation, may pose a challenge to the Russian fuel and energy industry and could also lead increased production costs and, in turn, intensified competition on European markets.
The absence of a system to record the carbon footprint in Russia today poses additional risks for Russian exporters. The development of a national system of carbon regulation that is harmonized with world standards will help offset these risks.
“The Russian government has adopted a number of regulations that aim to create a system for verifying the carbon footprint of companies’ products. This will make it possible to save funds in the budget of the Russian Federation that could be sent to the European Union as tax revenue. The REA of the Russian Ministry of Energy can become one of the verification centres. Work is already underway to obtain the status of a verifier in the national system,” Kulapin said, stressing that the REA is ready to discuss this topic with its Western partners.
Kulapin said the creation of a Russian verification system would increase the recognition of Russian indicators for actual emissions by the international community as a whole and by foreign investors in particular. Having carbon regulation standards in the country would give Russian companies the opportunity to attain higher positions in ESG ratings, which in turn would allow them to attract financing at lower rates.
The discussion of low-carbon energy development with the REA continued at business events attended by Deputy General Director and Head of the Analytical Centre for the Fuel and Energy Industry Denis Deryushkin and Deputy General Director and Head of the Competence Centre for the Technological Development of the Fuel and Energy Industry Oleg Zhdaneyev. These events included discussions on the future of the transport sector in the era of energy transition and the development of hydrogen energy in Russia and around the world. These officials also participated in panel sessions on cooperation between enterprises in the fuel and energy industry and the military-industrial complex and on the new challenges facing the chemical industry.
Along with the business programme, a number of agreements and memorandums were signed on the sidelines of the Forum. The REA was one of the parties to these signings. The REA’s new partners are the German Energy Agency (DENA), Moscow State Institute of International Relations (MGIMO) of the Russian Ministry of Foreign Affairs, the Analytical Credit Rating Agency (ACRA), KPMG, and the ESG Consulting Agency.
The Russian Energy Week International Forum is being held in Moscow on 13–15 October. It was organized by the Roscongress Foundation, the Russian Ministry of Energy, and the Moscow Government.