"Russia: energy policies and carbon markets", a report published by Dresdner Kleinwort and WWF, concludes that the Kyoto protocol could help Russia move forward. It calls for a long-term energy strategy and a faster Kyoto process in Russia.
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The report, launched in conjunction with global environmental organization WWF at the Russian Economic Forum in London, concludes that Russia has great potential to benefit from Kyoto Protocol energy and climate policies. The study also points out shortcomings when it comes to Russia's current energy policy.
Due to its large volume of natural resources, Russia plays a fundamental role in the global energy market. Russian gas reserves, however, are being depleted by ever-growing exports and surging domestic consumption fuelled by artificially low gas prices and plain wastefulness. Russia, for example, uses four times more energy to produce one million dollars of GDP than Germany. Massive consumption of fossile fuels made Russia the world's third largest greenhouse gas emitter in absolute terms in 2006.
As the Kyoto commitment period, which begins in 2008, nears, so does the possible start of international emissions trading. Potential investors are concerned that the Russian government may be too slow in developing the domestic policies necessary to allow investors to participate confidently in the international emissions trading.
The study finds that carbon trading would provide Russia the chance to spur energy-efficient development and open new investment opportunities for emission reduction projects in Russia; this could have a substantial influence on global emissions as well as on the long-term supply of Russian natural gas to international buyers.
