Russia is considering providing special preferences to foreign companies willing to participate in joint projects on climate change and clean technologies, President Vladimir Putin said April 22.
Speaking at the US Leaders' Climate summit, he reiterated Russia's "genuine interest in galvanizing international cooperation" in fighting climate change and meeting other vital global challenges.
"Russia is willing to present a range of joint projects and consider potential benefits even for foreign companies that would like to invest in clean technologies, including in our country," Putin said.
He did not provide additional details on incentives under discussion.
This would add to the state renewable energy program that already supports green projects in Russia. The initiative, which was recently extended until 2034, aims to bring renewables in Russia's energy mix to 4%-5% from 2% currently.
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Carbon capture advantage
In his address, Putin drew attention to Russia's advantage in carbon capture due to vast forests and land, which have already attracted the likes of BP and Shell to work with Russia on renewable and forestation projects.
The country's absorption capacity is 2.5 billion mt of CO2 equivalent per annum, according to government estimates.
"Without exaggeration, Russia makes a gigantic contribution to absorbing global emissions, both ours and from elsewhere," Putin said.
The day before, the Russian leader ordered the creation of "a strict system" to monitor reduction and utilization of carbon emissions, which should pave the way for carbon credit trading.
Russia may enact legislation on reducing greenhouse gas emissions as early as this spring, further stimulating companies to invest in green projects in order to achieve goals under the Paris climate accord.
The law would help cut emissions to a required 70% from the current 50% compared with 1990 levels and set up a regulatory base for carbon trading.
Energy diversification
Putin's remarks come as Russia continues to diversify its economy and decrease its reliance on oil revenues.
Russia's share of oil and gas in state budget revenues in the first quarter of 2021 dropped to a record low level of 30%, according to preliminary finance ministry data.
One of the reasons Russia is speeding up its green agenda is the looming EU carbon border tax, which will cost Russian exporters up to Eur6 billion ($7.2 billion) annually.
