Country Profile: Russia

Russia is one of the biggest emitters of greenhouse gases in the world and could become one of the biggest beneficiaries of the Kyoto Protocol’s flexible mechanisms. With the economic growth that followed the collapse of its centralised economy and its commitment under the Kyoto Protocol to stabilise greenhouse gas emissions at the levels of the Kyoto base year (1990), Russia has vast potential to obtain national emission reduction certificates in the first Kyoto commitment period. These could be sold on the international emissions trading market and the revenue used for urgently needed investment in the energy sector. A prerequisite in this regard, however, is that purchasers of national emission certificates receive assurance that they are initiating new emission reductions which will contribute in making Russia’s energy industry sustainable.

Russia actually has one of the most energy and carbon-intensive economies in the world. According to Russian estimates, the country could cut its current energy use by almost half by 2020. Key successes depend on more efficient use of energy resources and advancements in achieving a fuel switch. Joint Implementation projects could be used to steer Russian industry towards and attract investment for technology transfer in those sectors where economic upswing has yet to generate sufficient capital for such activities.

Cooperation with Russia under the Kyoto mechanisms is, however, increasingly subject to the matter of whether it can create the legal structure to allow JI projects to be conducted before the first commitment period begins in 2008. Despite this situation, the list of Russian JI projects awaiting approval by the Russian government continues to grow.

The greatest project potential is seen in energy efficiency within the country’s huge energy supply structures and in energy transport. JI could be used to mobilise funding to renew Russia’s municipal supply structures and modernise its buildings. Much of this potential cannot be developed solely on the basis of private industry initiatives, however. The Russian government would need to develop strategies on the basis of public-private partnerships. Additional potential of considerable magnitude lies in biomass, forestry and non-carbon gases.

Further selected information:

Russia's National Communications to the UNFCCC
German-Russian Energy Forum on Energy Efficiency and Renewable Energy (bilingual German and Russian)
Russia’s Solar Energy Centre (Intersolarcenter) for Renewable Energy Projects German
Foreign Office: Information on Russia
The EU's Relations with the Russian Federation