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 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.

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 European Green Deal and Climate Policy of the New Independent States

2021 ◽  
pp. 164-182
Author(s):  
E. Burkova
Keyword(s):  
Climate Policy ◽  
Carbon Tax ◽  
Global Climate ◽  
National Development ◽  
Carbon Intensity ◽  
Transition Mechanism ◽  
Starting Point ◽  
Independent States ◽  
New Independent States ◽  
The Eu

This article considers the most relevant component of the global environmental problem – the climate one. The article aims to identify the reaction of a national state to the global climate challenge. The subject of consideration is climate policy and, more broadly, the whole set of reactions of the political sphere of society to the global climate change. Among the tasks set by the author is to understand the nature of setting and solving new climatic environmental problems, to find out how they fit into national development strategies, to establish the interdependence of the climate ambitions of countries with the type of development, the carbon intensity of their economies, the structure of exports, the degree of energy independence. The solution of these tasks is carried out on the example of a number of new independent states (including CIS ones). A brief comparative analysis of these countries’ and the EU climate activities is carried out. The breakthrough event of the European environmental policy – the Green Deal of 2019 is taken as a starting point for the analysis. The main attention is paid to the key instrument of the EU climate policy today – the border carbon tax. Additional attention is paid to the observance of the principles of social justice in the implementation of new environmental activities (a just transition mechanism). The paper pays special attention to the role of Russia in the global climatic process. An assessment of the state of the climate segment of the environmental protection industry of our country, as well as the prospects for its development, is given.

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 COMPARATIVE CHARACTERISTICS OF DOMESTIC AND FOREIGN ACCOUNTING SYSTEMS ON THE EXAMPLE OF GERMANY

2021 ◽  
Vol 1 (22(50)) ◽  
pp. 76-80
Author(s):  
Nadiia Antonenko
Keyword(s):  
Basic Element ◽  
Accounting System ◽  
Reporting Standards ◽  
Federal Republic Of Germany ◽  
Accounting Systems ◽  
Eu Countries ◽  
The Subject ◽  
Tax Payments ◽  
Practical Recommendations ◽  
The Eu

The purpose of the article is to study the experience of reflecting accounting processes in the documents of companies of the Federal Republic of Germany (Germany), which is a basic element in building a harmonized accounting system with EU countries. To achieve the above goal, the authors set a task to compare the characteristics of accounting in Germany and Ukraine, to determine the features of development and construction of a modern accounting system in Germany, to formulate practical recommendations for improving accounting processes in Ukraine. The object of research is the process of accounting in Germany and Ukraine. The subject of the study are the principles and methods of accounting in these countries. As Germany stands out among the EU countries with a clear formalized approach to the application of statutory accounting and reporting standards, the experience of reflecting accounting processes in the documents of enterprises and companies of this country is important for building a harmonized accounting system in Ukraine. The German accounting system uses the principle of obligation, the essence of which is as follows: the direct basis for calculating tax payments are accounting accounts. In the organization of accounting in Germany automated form of its maintenance such as specialized accounting programs are mainly used. One such program is the SAP program. Given that the principles and methods of accounting used in Germany and Ukraine are almost the same, except for the principle of obligation used in Germany, it is recommended to implement SAP as an automated accounting system everywhere in large and medium-sized enterprises in Ukraine.

Carbon Taxation and the Paris Agreement

2021 ◽  
Author(s):  
Ian Parry
Keyword(s):  
Global Climate ◽  
Emerging Market ◽  
Economic Benefits ◽  
Paris Agreement ◽  
Environmental Harm ◽  
International Level ◽  
Carbon Pricing ◽  
Lump Sum ◽  
Carbon Taxation ◽  
Price Floor

The window of opportunity for containing risks of dangerous instability in the global climate system is closing rapidly. The response of the international community is embedded in the 2015 Paris Agreement, signed by 195 parties. Implementing the mitigation pledges parties submitted for the agreement is an important first step, although an additional mechanism to coordinate and scale up mitigation policy at the international level will likely be needed. Carbon taxation, or similar pricing, has a pivotal role, providing across-the-board incentives for reducing emissions and the critical price signal for redirecting investment, but pricing has proved difficult politically. Analytical literature on carbon taxation provides practical guidance on the role of taxation in implementing the Paris Agreement and enhancing its acceptability. Shifting taxes off labor and capital and onto carbon or fossil fuels can produce a “double dividend” by reducing environmental harm and lowering the burden broader taxes impose on the economy. Broader taxes both discourage work effort and investment and promote tax-sheltering behavior (e.g., activity in the informal sector). For various technical and practical reasons, however, it may not make sense to set the carbon tax rate above levels warranted on environmental grounds. The literature emphasizes the general importance of using carbon pricing revenues to benefit the economy, for example, lowering burdensome taxes or funding productive investments. These economic benefits are forgone if instead carbon pricing revenues are given to households in lump-sum dividends. Where higher energy prices are subject to public acceptability constraints, a package of regulations or their fiscal equivalents (known as “feebates”) have an important role in reinforcing carbon pricing. Carbon mitigation can also produce important domestic environmental co-benefits, such as reductions in local air pollution mortality. Unilateral action may be in many countries’ own interests before even counting the global climate benefits. Recent studies have quantified the carbon prices implicit in countries’ Paris mitigation pledges. These implicit prices differ widely across countries with the stringency of pledges and the responsiveness of emissions to pricing, underscoring the potential efficiency gains from some degree of price coordination at the international level. In fact, an international carbon price floor arrangement could be strikingly effective to the extent that it promotes more mitigation in key emerging market economies, such as China and India. The price floor need only cover a handful of large emitters, could be designed equitably with higher requirements for advanced countries, and could be designed flexibly to accommodate different policy approaches at the national level. Domestically, policymakers need to develop comprehensive mitigation strategies, ideally with carbon pricing as the key element. These strategies need to distribute burdens equitably, assist vulnerable groups, and include supporting measures for investment and pricing for broader sources of greenhouse gases.

scholarly journals Evolutionary Game Analysis of Responding to the EU’s Carbon Border Adjustment Mechanism

Energies ◽  
2022 ◽  
Vol 15 (2) ◽  
pp. 427
Author(s):  
Tao Huang ◽  
Zhixin Liu ◽  
Tian Zhao
Keyword(s):  
Policy Design ◽  
Evolutionary Game ◽  
Stable State ◽  
Sensitivity Analyses ◽  
Low Carbon ◽  
The European Union ◽  
Eu Countries ◽  
Adjustment Mechanism ◽  
The Government ◽  
Border Adjustment

The European Union (EU) views the carbon border adjustment mechanism (CBAM) as a measure to tackle carbon leakage, which will have a profound impact on non-EU countries’ exports. Policymakers are faced with the question of how to deal with the CBAM. In contrast to previous studies, we explore the effects of the CBAM on non-EU countries from a dynamic game perspective. This study analyzed the potential effects of the CBAM on China and found that the government and export companies are the two main stakeholders. We found that they can both choose whether to respond actively or passively. Based on their interactive relationship, we adopted an evolutionary game to model the nexus between the government and export companies. We analyzed the evolutionary stable state of each stakeholder and the whole game with the replicator dynamic equation system. To make the system evolve to the optimal state where the government reacts actively and export companies implement low-carbon production, we provide a policy mechanism for how to set key parameters’ values. We used numerical simulation to verify the policy design and to conduct sensitivity analyses of the key parameters. Our results show that, when two stakeholders positively react to the CBAM, it is necessary to increase their profits and to reduce their costs. Therefore, some suggestions are proposed, including optimizing the trade structure, strengthening cooperation with the EU, improving the current carbon market, and adopting carbon tax.

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 POVERTY AS A HETEROGENEITY FACTOR IN EU COUNTRIES

2019 ◽  
pp. 403
Author(s):  
Vesna Janković-Milić ◽  
Vinko Lepojević ◽  
Jelena Stanković
Keyword(s):  
European Union ◽  
Cluster Analysis ◽  
Economic Policy ◽  
Social Exclusion ◽  
The European Union ◽  
Eu Countries ◽  
Policy Measures ◽  
The Subject ◽  
The Difference ◽  
The Eu

Measuring poverty is of utmost importance for any economy in order to look at the extent and causes of the vulnerability of the population, but also to formulate social and economic policy measures and measure their effects. The multidimensionality of poverty makes it difficult to quantify and measure it. The subject of research is the components of the AROPE (At risk of poverty and social exclusion) indicator in the countries of the European Union (EU). Using the cluster analysis, the EU countries were grouped into homogeneous units, after which the significance of the difference in the average values of the analyzed indicators was tested. Based on the obtained results, the hypothesis of pronounced heterogeneity of EU countries from the aspect of poverty was confirmed.

The Scientific and Technological Policy of the EU and Prospects of Its Adaptation to the EAEU Practices

2018 ◽  
Vol 11 (3) ◽  
pp. 107-113
Author(s):  
V. N. Mironova
Keyword(s):  
Innovation Policy ◽  
Eu Countries ◽  
European Experience ◽  
Technological Cooperation ◽  
General Scientific ◽  
The Subject ◽  
Common Problems ◽  
Innovation Policies ◽  
The Eu

The subject of the research is the scientific and technological cooperation of countries within the framework of an integration association based on the EU case study. The purpose of the research was to identify the main vectors of the coordinated scientific and technological policy of the EU with a focus on the feasibility of its application to the EAEU practices to enhance business activities of enterprises in solving their own tasks. The experience of the EU countries in the implementation of scientific, technological and innovation policies made it possible to formulate a number of principles, methods and tools that can be used in the EAEU practices. It is concluded that in terms of the achievements considered herein, the foreign practice can be useful taking into account challenges faced by countries and companies when solving common problems, and will help avoid errors in making decisions. Based on the European experience of shaping a general scientific, technological and innovation policy, it is proposed to apply the EU experience to the practical activities of the EAEU member states.

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