The consequences of climate change are becoming one of the most discussed topics at the global level today. Governments are taking on more and more commitments to reduce the carbon footprint and implement the energy transition to alternative sources.

You can get acquainted with the key milestones in the formation of the carbon agenda, decarbonization technologies, as well as carbon regulation measures in the first part of the research conducted by SBS Consulting experts.

The problem of climate change

Key findings :

• Global warming: From 1880 to 2019, the global temperature increased by +0.95°C
• GHG emissions: Greenhouse gas emissions increased significantly from 1880 to 2019
• Consequences: Increased frequency of hurricanes, annual temperature records, fires, destruction of Antarctic ice shelves

Key documents :

• Paris Agreement (2015): Limiting global warming to +2°C
• UN IPCC Report (2021): Confirms the irrefutable and irreversible nature of current climate change

Fourth energy transition

Drivers of the energy transition :

• Green technology development: Includes RES, hydrogen economy and CCUS (carbon capture, utilisation and storage)
• ESG principles: Embedding in corporate strategies, investment, risk management
• Carbon management: International agreements, mandatory carbon reporting, carbon national and border taxes

Key technologies :

• Process electrification and RES: Commercialisation and active development of technologies for generating electricity from inexhaustible sources
• Hydrogen economy: Use of hydrogen for power generation and transport
• CCUS: Carbon capture, utilisation and storage

International agreements and national regulations

Kyoto Protocol and Paris Agreement :

• The Kyoto Protocol (1997): Reducing greenhouse gas emissions
• The Paris Agreement (2015): Limiting global temperature increase to +2°C

European Green Deal :

• Objectives: Reducing GHG emissions by 55% by 2030 from 1990 levels, achieving EU climate neutrality by 2050
• Mechanisms: Emissions Trading System (EU ETS), carbon taxes, Carbon Border Adjustment Mechanism (CBAM)

Carbon management in developed countries

Country examples :

• EU: Emissions Trading System (EU ETS)
• China: National Emissions Trading System
• USA: Regional Greenhouse Gas Initiative (RGGI)

Carbon Border Adjustment Mechanism (CBAM) :

• Purpose: A fee on the carbon footprint of imported products into the EU
• Introduction: From 2026
• Tax base: Iron and steel, aluminium, cement, fertiliser, electricity

Russian legislation and carbon management

Federal Law No. 296-FZ "On limiting greenhouse gas emissions" :

• Objective: Reduction of GHG emissions by 70% by 2030 compared to 1990
• Mechanisms: Mandatory carbon reporting, creation of a registry system for carbon units, voluntary implementation of climate projects

Integrated Environmental Permit (IEP) :

• Requirements: Companies with significant environmental impact are required to obtain an IEP by the end of 2022
• Sanctions: Fines, suspension of activities, increased frequency of inspections

Conclusion

The study emphasises the need for proactive carbon management and transition to a low-carbon economy. Key areas include the development of renewable energy sources, hydrogen economy and CCUS technologies, as well as the introduction of ESG principles and carbon taxation mechanisms. Achieving global climate goals requires close cooperation between the international community and national governments, as well as active support of business in the implementation of green projects.