Analytical Center prepared a new edition of the Energy Bulletin devoted to the issues of Russian and Global Climate Policy
Greenhouse gas emissions (GHG) became the key indicator of climate doctrines in Russia and European Union. However, there is a huge difference between them. EU has a long-standing policy in this area unlike the Russia where adoption of such a doctrine and a plan for its implementation represents an important psychological step, the end of the domestic debate about whether human activity affects the climate. The problems of the Climate Doctrine in EU are that it is too politicized: it tries to include not only the reduction of GHG for planetary reasons, but also to ensure the energy security of individual states. A common goal has been set as a result of the obvious differences between EU countries. The leading states will compensate for the others who are lagging behind. The planning process in EU is extremely difficult in the context of the heavy and painful revival. The slow process of switching from clean natural gas to cheaper coal is partially concealed by “politics”. In addition, the increased use of coal in the EU and Asia objectively postpones the possibility to halt the growth of GHG in the world.
Another important issue of this edition is – incentives for exploitation of the new oil fields that are hard to access. Under the current tax system, oil production and exports require a very fine work on accounting the interests of the state and companies. The latter should carefully select the “old oil”, without trying to lower the reserves in order to obtain new benefits. Another issue is why the global LPG trade didn’t grow in recent years? The obvious reason is that construction of terminals slowed down after Asia Pacific Region and EU switched to the natural gas that wasn’t needed in USA because of the financial crisis and the increasing production of shelf gas. These are expensive projects, and slow recovery does not contribute to the removal of financial and commercial risks. GHG will continue to come from other countries. But the overall conclusion is that all innovations will come few years later than what optimistic scenarios are showing!
Details – in the new edition of Energy Bulletin “Russian and Global Climate Policy”.