CBAM and Russian export

2022 ◽  
pp. 90-109
Author(s):  
I. A. Bashmakov
Keyword(s):  
Raw Materials ◽  
Emission Control ◽  
Economic Loss ◽  
Industrial Sector ◽  
Carbon Intensity ◽  
Ghg Emission ◽  
Adjustment Mechanism ◽  
Additional Income ◽  
The Eu ◽  
Border Adjustment

The EU is expected to introduce the Carbon Border Adjustment Mechanism (CBAM) in 2026. The estimates of the resulting Russia’s economic loss, that can be found in the literature, appear to be blown up, static, and not directly related to the change in the incomes of Russian exporters. These estimates are driven by the authors’ speculations, rather than by the CBAM concept as announced by the EU. This paper aims to assess the potential implications of CBAM for the Russian raw materials exports. CBAM will launch a carbon intensity reduction race for industrial products. Those who will not be able to keep abreast of the leaders will be losing their market niches. Because Russia is freezing its current carbon intensity levels, it will see its CBAM exports shrink and, small at the beginning, export incomes reduction may gradually become substantial. At the same time, proactive GHG emission control in the industrial sector can help avoid the loss and even yield additional income.

Carbon border taxes raise international dispute risks

2021 ◽  
Keyword(s):  
Emission Trading ◽  
Climate Mitigation ◽  
Trade Disputes ◽  
Content Type ◽  
Adjustment Mechanism ◽  
Climate Policies ◽  
International Dispute ◽  
Demand Patterns ◽  
The Eu ◽  
Border Adjustment

Significance Increasingly demanding climate mitigation targets in some economies have raised concerns over industry competitiveness and possible relocations of carbon-intensive industries. The EU plans a ‘carbon border adjustment mechanism’ (CBAM), effectively a tax, by 2023, to penalise imports from economies without comparable climate policies. These types of measures strengthen industry support for such policies, but risk triggering trade disputes. Impacts Efforts to link different emission trading schemes will grow. Decarbonisation policies will change demand patterns for manufacturing inputs. Developing countries’ climate diplomacy will need to be coordinated with their trade ministries.

scholarly journals The global trend towards decarbonization of the economy, the introduction of the Carbon Border Adjustment Mechanism in the EU and the possible consequences for Russia

2021 ◽  
Vol 129 ◽  
pp. 09021
Author(s):  
Vladimir Sh. Urazgaliev ◽  
V. Novikov Andrey ◽  
A. Menshikova Galina
Keyword(s):  
Carbon Dioxide Emissions ◽  
Economic Relations ◽  
Carbon Neutrality ◽  
Adjustment Mechanism ◽  
Reduce Carbon Dioxide ◽  
Energy Products ◽  
Climate Neutrality ◽  
The Impact ◽  
The Eu ◽  
Border Adjustment

Research background: In the process of implementing the Paris Agreement (2015), Europe is a leader in the formation of new legislative initiatives in order to develop a set of effective measures to reduce greenhouse gas emissions in the atmosphere. The European Commission approved the European Green Deal (2015) - a strategy for achieving the EU parameters of climate neutrality through the transition to a clean circular economy. Its main goal is to reduce carbon dioxide emissions by 2030 by 50 - 55% from 1990 levels and achieve full carbon neutrality of the EU by 2050. As part of this strategy, the Carbon Border Adjustment Mechanism (CBAM) is being developed. The introduction of CBAM means a revolutionary transformation in the system of international economic relations. Purpose of the article is to identify and assess possible risks for producers and consumers, primarily of energy products after the introduction of CBAM, as well as the impact of these risks on Russian exports to Europe. Methods: The authors carried out a comparative analysis of scenarios for the implementation of CBAM in the sectorial and product segments of trade between Russia and the EU. Findings: The article contains comparative assessments of the beginning redistribution of international markets in the sectoral and product coverage of emissions, as well as an analysis of the unfolding contradictions in the verification of methods for determining the carbon footprint in the production chains of the real sector of the economy.

scholarly journals The geopolitics of the European Green Deal

2021 ◽  
Vol 16 (2) ◽  
pp. 204-235
Author(s):  
Mark Leonard ◽  
◽  
Jean Pisani-Ferry ◽  
Jeremy Shapiro ◽  
Simone Tagliapietra ◽  
...  
Keyword(s):  
Climate Change ◽  
Oil And Gas ◽  
Raw Materials ◽  
Energy Transition ◽  
Energy System ◽  
The United States ◽  
Lessons Learned ◽  
Trade Patterns ◽  
The Eu ◽  
Border Adjustment

The European Green Deal is a plan to decarbonise the EU economy by 2050, revolutionise the EU’s energy system, profoundly transform the economy and inspire efforts to combat climate change. But the plan will also have profound geopolitical repercussions. The Green Deal will affect geopolitics through its impact on the EU energy balance and global markets; on oil and gas-producing countries in the EU neighbourhood; on European energy security; and on global trade patterns, notably via the carbon border adjustment mechanism. At least some of these changes are likely to impact partner countries adversely. The EU needs to wake up to the consequences abroad of its domestic decisions. It should prepare to help manage the geopolitical aspects of the European Green Deal. Relationships with important neighbourhood countries such as Russia and Algeria, and with global players including the United States, China and Saudi Arabia, are central to this effort, which can be structured around seven actions: 1) Help neighbouring oil and gas-exporting countries manage the repercussions of the European Green Deal. The EU should engage with these countries to foster their economic diversification, including into renewable energy and green hydrogen that could in the future be exported to Europe; 2) Improve the security of critical raw materials supply and limit dependence, first and foremost on China. Essential measures include greater supply diversification, increased recycling volumes and substitution of critical materials; 3) Work with the US and other partners to establish a ‘climate club’ whose members will apply similar carbon border adjustment measures. All countries, including China, would be welcome to join if they commit to abide by the club's objectives and rules; 4) Become a global standard-setter for the energy transition, particularly in hydrogen and green bonds. Requiring compliance with strict environmental regulations as a condition to access the EU market will be strong encouragement to go green for all countries; 5) Internationalise the European Green Deal by mobilising the EU budget, the EU Recovery and Resilience Fund, and EU development policy; 6) Promote global coalitions for climate change mitigation, for example through a global coalition for the permafrost, which would fund measures to contain the permafrost thaw; 7) Promote a global platform on the new economics of climate action to share lessons learned and best practices.

Implementation of the Paris Agreement on Global Climate: European Carbon Blackmail of Russia and Possibilities of Countering It

2021 ◽  
pp. 77-93
Author(s):  
Sergey Anatolyevich Roginko ◽  
Sergey Nikolaevich Silvestrov
Keyword(s):  
Carbon Tax ◽  
Global Climate ◽  
Paris Agreement ◽  
Eu Countries ◽  
Adjustment Mechanism ◽  
The Subject ◽  
Carbon Taxation ◽  
The Eu ◽  
Border Adjustment

The subject of the analysis is the EU initiative to introduce the so-called Carbon Border Adjustment Mechanism developed within the framework of the «European Green Deal» adopted in 2019 and its possible impact on the Russian exporting industries. The author examines in detail the genesis of European initiatives in the field of border carbon tax, draws a parallel between the Border Carbon Correction Mechanism and the early EU initiatives on carbon taxation of flights of foreign airlines operating in airports of EU countries. Recommendations are given on possible measures to hedge risks associated with this EU initiative, including the possibility of blocking the EU initiative in the international arena, including the positions of the leading world powers on this issue, is analyzed. The tactics of interaction on this issue with such large global exporters as China, India, Brazil and others are proposed.

scholarly journals Carbon Border Adjustment Mechanism: New Context for EU-Russia Relations

2021 ◽  
Vol 106 (6) ◽  
pp. 63-74
Author(s):  
Anastasia Nevskaya ◽  
◽  
Yulia Baronina ◽  
Keyword(s):  
Emissions Trading ◽  
Compensatory Mechanism ◽  
Trading System ◽  
Adjustment Mechanism ◽  
System A ◽  
Theoretical Approaches ◽  
Trading Partners ◽  
Regional Emissions ◽  
The Eu ◽  
Border Adjustment

The article examines the introduction of the EU carbon border adjustment mechanism (CBAM) as part of the EU economy decarbonization. The implementation of this initiative poses certain risks for the EU trading partners. Moreover, this issue is extremely important for the entire global trading system. The purpose of the study is to assess the real threats of the mechanism for Russian companies and identify opportunities for successful adaptation to the new green realities. The theoretical approaches and prerequisites for the CBAM introduction are analyzed, its systemic effects for companies around the world are shown. The channels and possible scale of this measure’s impact on Russian exporters are considered. The authors analyze the main possible response scenarios for Russia. The most promising scenarios could be: a) intensification of the carbon-free energy and increasing the energy efficiency of production processes, 2) development of an alternative compensatory mechanism, 3) integration into the regional emissions trading system. A possible challenge of the CBAM introduction in the WTO may be ineffective; cooperation with countries outside the “green agenda” – counterproductive. It is concluded that there are opportunities for Russian companies to strengthen their competitiveness due to CBAM requirements. However, there is a lack of expertise in a number of areas and levels, which can hinder the implementation of these opportunities.

scholarly journals ASSESSMENT OF LOSSES OF THE ECONOMY OF KAZAKHSTAN FROM THE INTRODUCTION OF THE EU BORDER CARBON TAX

2021 ◽  
Author(s):  
С.Н. Алпысбаева ◽  
А.А. Бакдолотов ◽  
Н.Н. Жанакова ◽  
S. Alpysbayeva ◽  
A. Bakdolotov ◽  
...  
Keyword(s):  
Carbon Tax ◽  
Global Supply Chain ◽  
Import Duty ◽  
Preliminary Assessment ◽  
Adjustment Mechanism ◽  
Reduction Of Emissions ◽  
The Republic ◽  
The Impact ◽  
The Eu ◽  
Border Adjustment

Статья посвящена изучению вопроса введения ЕС углеродного корректирующего пограничного механизма (далее - УКПМ), в структуре которого предусмотрена импортная пошлина на углеродоёмкие импортные товары. Для экспорто-ориентированных стран данный налог означает наличие высоких рисков снижения выручки от экспорта энергоресурсов в Европу, а также в другие страны. Авторами изучены предпосылки введения углеродного корректирующего пограничного механизма, введение и реализация которого ориентирована на сокращение выбросов парниковых газов в ЕС, а также стимулирование сокращений выбросов в других странах. Представлены краткие результаты проведенных международных исследований таких компаний, как Boston Consulting Group, KPMG по оценке эффектов введения УКПМ на международную торговлю. В статье также сделана предварительная оценка потерь Казахстана от введения ЕС углеродного корректирующего пограничного механизма, с использованием подхода «Что-Если» на основе данных 2019 года. Согласно проведенным расчетам, если бы в 2019 году, экспорт подвергался бы углеродному налогу в рамках углеродного корректирующего пограничного механизма, то потери составили бы минимально $157,5 млн. или 2,1% поступлений в Национальный фонд РК, и максимально, предполагая, что весь экспорт используется в глобальных цепочках поставок товаров в Европу, $576,4 млн. или 7,7% поступлений в Национальный фонд РК. The article is focused on the study of the introduction of the carbon border adjustment mechanism (hereafter CBAM) by the EU, the structure of which considers an import duty on the carbon-intensive goods. For export-oriented countries, this tax implies a higher risk of reduced revenue from carbon-related energy exports to Europe, as well as to the other countries. The authors studied the prerequisites from CBAM introduction, the development, and implementation of mechanism which the aim is to reduce greenhouse gas emissions in the EU, as well as to stimulate the reduction of emissions in other countries. The brief results of studies of international companies, such as Boston Consulting Group and KPMG, are presented on the assessment of the impact of introducing CBAM on international trade. The article provides a preliminary assessment of Kazakhstan's losses due to the carbon border adjustment mechanism introduced by the EU, using the "What-If" approach based on 2019 data. According to the calculations, if CBAM was implemented in 2019 and carbon exports were taxed according to the mechanism, the estimated losses would be $157.5 million, or 2.1% of the revenues of the National Fund of the Republic of Kazakhstan, at minimum. At maximum, with an assumption that all exports that are used in the global supply chain of goods to Europe, the revenue losses would become $576.4 million, or 7.7% of the revenues of the National Fund of the Republic of Kazakhstan.

European experience in transition to circular economy

2020 ◽  
Vol 19 (4) ◽  
pp. 598-617 ◽  
Author(s):  
S.V. Ratner
Keyword(s):  
European Union ◽  
Circular Economy ◽  
Raw Materials ◽  
Action Plan ◽  
National Level ◽  
The European Union ◽  
Scientific Methods ◽  
European Experience ◽  
General Scientific ◽  
The Eu

Subject. The article considers the concept of circular economy, which has originated relatively recently in the academic literature, and is now increasingly recognized in many countries at the national level. In the European Union, the transition to circular economy is viewed as an opportunity to improve competitiveness of the European Union, protect businesses from resource shortages and fluctuating prices for raw materials and supplies, and a way to increase employment and innovation. Objectives. The aim of the study is to analyze the incentives developed by the European Commission for moving to circular economy, and to assess their effectiveness on the basis of statistical analysis. Methods. I employ general scientific methods of research. Results. The analysis of the EU Action Plan for the Circular Economy enabled to conclude that the results of the recent research in circular economy barriers, eco-innovation, technology and infrastructure were successfully integrated into the framework of this document. Understanding the root causes holding back the circular economy development and the balanced combination of economic and administrative incentives strengthened the Action Plan, and it contributed to the circular economy development in the EU. Conclusions. The measures to stimulate the development of the circular economy proposed in the European Action Plan can be viewed as a prototype for designing similar strategies in other countries, including Russia. Meanwhile, a more detailed analysis of barriers to the circular economy at the level of individual countries and regions is needed.

scholarly journals Potential Benefits and Constraints of Development of Critical Raw Materials’ Production in the EU: Analysis of Selected Case Studies

Resources ◽  
2021 ◽  
Vol 10 (7) ◽  
pp. 67
Author(s):  
Katarzyna Guzik ◽  
Krzysztof Galos ◽  
Alicja Kot-Niewiadomska ◽  
Toni Eerola ◽  
Pasi Eilu ◽  
...  
Keyword(s):  
Case Studies ◽  
Social Acceptance ◽  
Raw Materials ◽  
Local Level ◽  
Ore Deposits ◽  
Abandoned Mines ◽  
Social Constraints ◽  
Cost And Benefit Analysis ◽  
The Eu ◽  
Critical Raw Materials

Major benefits and constraints related to mineral extraction within the EU have been identified on the examples of selected critical raw materials’ deposits. Analyzed case studies include the following ore deposits: Myszków Mo-W-Cu (Poland), Juomasuo Au-Co (Finland), S. Pedro das Águias W-Sn (Portugal), Penouta Nb-Ta-Sn (Spain), Norra Kärr REEs (Sweden) and Trælen graphite (Norway). They represent different stages of development, from the early/grassroot exploration stage, through advanced exploration and active mining, up to reopening of abandoned mines, and refer to different problems and constraints related to the possibility of exploitation commencement. The multi-criteria analysis of the cases has included geological and economic factors as well as environmental, land use, social acceptance and infrastructure factors. These factors, in terms of cost and benefit analysis, have been considered at three levels: local, country and EU levels. The analyzed cases indicated the major obstacles that occur in different stages of deposit development and need to be overcome in order to enable a new deposit exploitation commencement. These are environmental (Juomasuo and Myszków), spatial (Juomasuo) as well as social constraints (Norra Kärr, Juomasuo). In the analyzed cases, the most important constraints related to future deposit extraction occur primarily at a local level, while some important benefits are identified mainly at the country and the EU levels. These major benefits are related to securing long-term supplies for the national industries and strategically important EU industry sectors.

scholarly journals How Far Away Are World Economies from Circularity: Assessing the Capacity of Circular Economy Policy Packages in the Operation of Raw Materials and Industrial Wastes

2021 ◽  
Vol 13 (8) ◽  
pp. 4394
Author(s):  
Margarita Ignatyeva ◽  
Vera Yurak ◽  
Alexey Dushin ◽  
Vladimir Strovsky ◽  
Sergey Zavyalov ◽  
...  
Keyword(s):  
The Netherlands ◽  
Waste Management ◽  
South Korea ◽  
Circular Economy ◽  
Raw Materials ◽  
Industrial Wastes ◽  
New Guidelines ◽  
The 1960S ◽  
Degree Level ◽  
The Eu

Nowadays, circular economy (CE) is on the agenda, however, this concept of closed supply chains originated in the 1960s. The current growing quantity of studies in this area accounts for different discourses except the holistic one, which mixes both approaches—contextual and operating (contextual approach utilizes the thorough examination of the CE theory, stricture of the policy, etc.; the operating one uses any kind of statistical data)—to assess the capacity of circular economy regulatory policy packages (CERPP) in operating raw materials and industrial wastes. This article demonstrates new guidelines for assessing the degree level of capacity (DLC) of CERPPs in the operation of raw materials and industrial wastes by utilizing the apparatus of the fuzzy set theory. It scrupulously surveys current CERPPs in three regions: the EU overall, Finland and Russia; and assesses for eight regions—the EU overall, Finland, Russia, China, Greece, France, the Netherlands and South Korea—the DLC of CERPPs in operating raw materials and industrial wastes. The results show that EU is the best in CE policy and its CERPP is 3R. The following are South Korea and China with the same type of CERPP. Finland, France and the Netherlands have worse results than EU with the type of CERPP called “integrated waste management” because of the absence of a waste hierarchy (reduce, recover, recycle). Russia closes the list with the type of CERPP “basic waste management”.

Nearly Zero-Energy Buildings & Buildings Built with Industrialized Technology: The Case of Hungary

2016 ◽  
Vol 824 ◽  
pp. 469-476
Author(s):  
Attila Talamon ◽  
Viktória Sugár ◽  
Ferenc Pusztai
Keyword(s):  
Economic Structure ◽  
Financial Resources ◽  
Existing Buildings ◽  
Ghg Emission ◽  
Zero Energy ◽  
Building Stock ◽  
Central European ◽  
The Past ◽  
The Eu ◽  
Zero Energy Buildings

There is an urgent need nowadays to reduce current levels of GHGs emissions. On the other hand the EU countries are largely dependent on energy imports and are vulnerable to disruption in energy supply which may in turn threaten the functioning of their current economic structure. The EU imported 54% of its energy sources in 2006 and this value was projected to increase even further by 2030. Reducing its import dependency is one of the EU’s main goals of the 20-20 by 2020 target – this legislative package is believed to reduce the expected imports of energy by 26% compared to the development before the 20-20 initiative.One of the most important environmental problems is the energy consumption of the buildings. Current paper shows that buildings built with industrialized technology can deliver large energy and GHG emission reductions at low costs.Only 1-2% part of the building stock is exchanged every year, so it is very important to increase the energy efficiency of the existing buildings, too.Present paper focuses on the buildings built with industrialized technology only, and their potential in nearly zero-energy buildings sector. Up till now the Central European support schemes concentrated most financial resources on buildings built with prefabricated technology. Present paper explains the past and present of the “panel” problem in Hungary with a short outlook to some other countries.

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