Russia's Course to Decarbonise the Economy in the Face of Geopolitical Uncertainty : New Conditions and a Relevant Strategy (2022)

Climate change, which affects the economic interests of nations and companies, has become a key issue on the political agenda in recent years. Investments have exceeded a trillion dollars in greenhouse gas emission reductions and the transition to green technologies, and new mega-projects and multi-billion dollar carbon markets have emerged. An opportunity emerged for Russia to become one of the world leaders in the green mainstream and to avoid the risks of carbon protectionism by forcing decarbonisation of the economy, offering its own technologies and new resources (green hydrogen, etc.). New energy policies and "green markets of the future", combined with preparations for EU cross-border carbon regulation and new requirements for Russian business, have spurred the Russian low-carbon development strategy until 2050, adopted last year. Businesses are urgently going green and the government is equally urgent in developing green regulatory mechanisms. But the conflict around Ukraine and geopolitical instability are significantly adjusting the national green agenda. Geopolitical factors are expected to have a much greater impact on the energy transition in Russia than climate change, and in Europe a more radical emissions reduction strategy and energy transition can be expected, albeit with temporary adjustments and increased use of brown fuels (primarily coal) due to energy shortages