Kyoto protocol (carbon market)- invigorative mechanism of energy-saving in Russia

1. Base line the level of 1990 Actual (predictable) level of GHG emissions GHG emissions in Russia is first budget period and probably in second budget period Free float of unused quota of GHG emissions Billion t CO2 Decrease of reserveunused quota in result of projects GHG emission on condition that JI will be realize 3,0 Product 1 – “Policy” Product 2 – “Business” 2,5 Second budget period ? First budget period 2,0 Report on commitments fulfillment, projects and transactions implementation Administrative Units of Russian Federation UN Framework Convention on Climate Change Verification GOVERNMENT Audit Project Portfolio Energy Strategy Programme of socio-economic development Info of GHG emissions, projects, transactions Pre-audit State policy Authorization Control Green projects Emissions Inventory Authorized undergovenmental organization Energy efficiency Emissions monitoring rules Emissions monitoring system National registry JI projects register Assigned Amount Units Info of allowed volumes of CO2 emissions Project identifier Emission Rights Emissions rights allocation rules Federal Authorities Info of projects Legislative framework Transactions register rules Emission Reduction Units Federal and regional legislation Decrease of energy intensity of GDP to 36% to 2010 Info of CO2 emissions level Allocation Accredited verifications of technical design and reporting documentation Finance Kyoto protocol (carbon market) – International mechanism of energy-saving stimulation Emission reduction projects Info of CO2 emissions reduction Projects Energy saving measures Baseline, monitoring and verification rules Consultants on projects preparation and monitoring Budgets, tariffs Enterprises Regulatory framework, staff – Information – Value Consultants on CO2 emissions inventory and monitoring National monitoring, reporting, registries National trading rules Emission rights Emissions trading Carbon Market Options of Government actions economical uneconomical Regulatory act (Governmental decree or federal law) states a number of future opportunities for those who maintains emissions accounting system at own expenses (inventory, monitoring, forecasts) Regulatory act creates opportunities for Governors to establish emissions Accounting Funds (those funds financing is to be secured from regional budgets) motivational ? Regulatory act enforces region and state-owned enterprises to maintain emissions accounting system in accordance with approved methodologies, and to report emissions data Government gives instructions and allocate targeted financing to Special GHG Emissions Accounting Fund compulsory Conceptual approaches to Kyoto protocol market mechanisms implementation Kyoto protocol (carbon market)- invigorative mechanism of energy-saving in Russia Structure of greenhouseemissions in Russia by sectors of economic GHG emission in Russia and potential projects Program “Energy-saving in Russia. 1999 - 2005”  Means of attraction in modernization projects technical andtechnological innovation Entry of Russian companies on world carbon markets (including Clean Development Mechanism) Increase of environmental rating of company Advanceof science intensivetechnologies to new markets Increase of enterprises competitiveness Rise of profitabilityinvestments projects for strategic investors Financial,insurance,advice service on carbon market Source: Third National Communication to United Nations Framework Convention on Climate Change Source: National Carbon Union Organizational-functional scheme of Kyoto Protocol mechanisms implementation in Russia Mechanism of emission reduction projects implementation in Russia The use of Kyoto Protocol mechanisms for economical efficiency increasing of Energy projects in Russia Introduction of GHG emissions accounting system Incentive tocollaboration in carbon market for Russian enterprises of fuel and energy complex Summary GHG emissions inventory and monitoring systems are the basis for national carbon market infrastructure Russian Federation ratified the Kyoto protocol Free quotas of greenhouse gases are available Necessity of the market mechanisms formation Three products in the carbon market Market sustainability and flexibility Greenhouse gases accounting and monitoring Legislative stimulation of the energy-saving and GHG emission reduction Regularly tenders for the GHG quotas distribution among the Administrative Units * Project#1 – Habarovskenergo ** Project#2 - Novgorodenergo Source: RAO UES