Why Russia needs GHG Emissions Market?

Establishing national GHG ET Market is again being discussed. This discussion already took place some years ago, but then the idea was critically met by international experts. Now the revival of this topic is supported by the argument of stimulation of CO₂ emissions reduction. However, the idea find opponents again.

In Russia the subject of establishing national ET Market again brought up to discussion. Such discussion was imitated by some business in the 2000th, but that time it got the critical assessment of international experts. Now the revival of this topic is argued with necessity to stimulate reeducation of CO₂ emission, but this argument again has an opponents. Anton Galenovich analyses the arguments Pro and Contra.

1. It would help mitigate GHG emissions at least cost.
   Still not most important argument for Russia
2. If properly designed and controlled it would serve an efficient gateway for investments flow from international carbon markets to develop energy efficiency, renewable energy projects.
   Also not of the primary importance for Russia. It might rather help import foreign technologies.
3. 3. It would efficiently reduce air pollution and benefit public health at least cost.
   Might be persuasive. “The US Acid Rains Program achieved full compliance in 2007 with the SO2 allowance holding requirements and NOx emission limits. Estimated public health benefits from ARP emission reductions - over $120 billion annually at full implementation in 2010 -- exceed program costs by a margin of more than 40:1” (US EPA)
4. It would insulate green protectionism.
   Important for some sectors already, even more important in future
5. I would make declarative targets real (decrease energy intensity of GNP by 40% by 2020, develop renewables…).
   Politically important
6. It is although indirect but effective and neat instrument to influence resource based industries development, and instrument of state industrial policy, which allows, inciting innovations and enforcing energy efficiency, allows for implementing differential state policy toward industries sectors.
   Might be most important depending on required level of state control over the economy
7. It would increase Russian fossil fuel export potential
   ETS for CO₂ and CH4 would serve as a universal instrument to capitalize energy efficiency, energy saving. Renewable development results, and could also help direct funds to government energy priorities such as building or industrial efficiency improvements and a greater reliance on Russian abundant renewable energy resources.