Russian authorities will provide support measures for domestic companies in case the European Union introduces a carbon tax and will hold international negotiations on this matter, Deputy Head of the Russian Security Council Dmitry Medvedev said on Wednesday, TASS reported.
“This will have fairly serious consequences” for the Russian economy, Medvedev noted. “Our base industries can be affected,” he added.
“Consumption of Russian oil and Russian coal can contract significantly because of such cross-border regulation,” Medvedev noted.
“There is a need to think of how to support the most vulnerable industries and branches in case such decisions come into force: to support both inside the country and probably by external response measures,” he added.
Such a mechanism at the EU level “if introduced without any restrictions and comments will run counter to norms of effective international agreements, including the UN framework climate convention, which prevents using climate change control activities to limit international competitiveness,” Medvedev said. Russia needs to hold “talks in the bilateral format with the EU and at relevant international platforms,” including WTO, he added.
Russia is currently developing a legislative framework for regulation of greenhouse gas emissions and will “update national approaches to such products so that they are recognized, including at the international level,” Medvedev noted.
The European Commissioned launched the Green Deal project in December 2019, aimed at a transition to a more eco-friendly life in the European Union. Transition to the economy with zero carbon emissions is planned by 2050 but there are no specific calculations by now how to implement this in practice. One of the measures within the Green Deal framework is to impose a carbon duty on import of goods.