Carbon units in circulation in Russia sufficient to cover Sakhalin experiment exceeding quotas - Economic Development Ministry
MOSCOW. Nov 21 (Interfax) - Russia has a sufficient amount of carbon units in circulation to cover the excess which may be produced by the Sakhalin experiment, director of the Economic Development Ministry's department for competition, energy efficiency and the environment Irina Petrunina said.
"The market for both quota fulfillment units and for opportunities for companies that exceed quotas for one reason or another to buy carbon units will essentially launch in 2025. There are currently 32 million carbon units in circulation in Russia, which is sufficient to cover the excess if quotas are exceeded," Petrunina said during a session held at Russia's COP29 pavilion dedicated to the Sakhalin climate experiment.
The Sakhalin regional authorities will assess quota fulfillment set for participating companies for the first time in 2025, she said.
"Thirty-five companies are currently taking part in the experiment. These are the largest greenhouse gas emitters in the Sakhalin region. The experiment is at a very active phase, because the companies reported on greenhouse gas emissions for both 2023 and 2024. We have a corresponding register where we log these reports, and we have the opportunity to analyze each company's situation," she said.
As reported, the experiment for limiting greenhouse gas emissions began in the Sakhalin region on September 1, 2022. It aims to achieve carbon neutrality in the region by December 31, 2025. An inventory of greenhouse gases was carried out in the region in 2021. Emissions amounted to 12.3 million tonnes of CO2 equivalent and absorption stood at 11.1 million tonnes. The difference of around 10% or 1.2 million tonnes of CO2 equivalent needs to be eliminated. Quotas for companies participating in the experiment were calculated in 2023.
A total of 40 climate projects are currently listed in the Russian carbon unit register, which collectively assume the production of 84.72 million carbon units. Of these, 32.51 million units are currently in circulation, and 17,400 more have been offset (repaid) in order to reduce the carbon footprint.