Climate Agenda in Russia: Shifting Guidelines and New Challenges

Abstract

The changing of a geopolitical situation and a reorientation of Russian exports to the East were starting an adjustment the climate agenda took place in Russia, which determined the relevance of the research topic. The shift in the primary drivers of the agenda, coupled with the potential for adverse effects on the Russian real economy due to the implementation of cross-border carbon regulations within the European Union, has extended the duration of the transformational process. However, the commitment to transitioning towards a more environmentally friendly approach remains unchanged. In light of the observed change in business focus, the advancement of the climate agenda requires significant efforts from the government. Carbon neutrality and high environmental standards is economically feasible in the medium and long term. At the same time, Russia’s new key partners in the East are actively interacting with the West, which encourages them to act in line with Carbon Border Adjustment Mechanism. Therefore, these standards will eventually extend to Russian companies. The “green” transformation in domestic industries will mitigate the potential dangers of stricter carbon regulations in the East, while also providing additional competitive advantages for the Russian economy.