Russia is Moving Ahead with the Kyoto Protocol

Moscow, April 28, 2008 - Today the World Bank, in cooperation with the Ministry of Development and Trade, Gazprom, the United Nations Development Program and other partners carries out the “Moscow Carbon Market Forum 2008”. One of the major conferences on the use of Kyoto Protocol mechanisms in Russia - building on the success in 2006 and 2007 - is planned to be the largest of its kind in Russia so far. The Forum brings together representatives of the Russian Government, international institutions, Russian companies willing to sell carbon reductions, international and national experts community, as well as the western governments and carbon funds planning to purchase carbon reductions in Russia.

The “Moscow Carbon Market Forum 2008” primary focus is on policy, legal framework and procedures for the implementation of the Kyoto Protocol in Russia and in the CIS countries. The Forum also aims to share the international experiences on the Kyoto Protocol instruments and progress made by the new EU members, like Hungary and Poland. It looks to address the activities, which could reach beyond the Kyoto Protocol period in 2012.

Russia is the third largest emitter of greenhouse gases, after the China and the USA. Under the Kyoto Protocol Russia is committed to stabilize its greenhouse gas emissions during the commitment period of 2008-2012 to 1990 levels. Russia has significant headroom of Assigned Amount Units (AAUs) to sell under Joint Implementation (JI) and International Emission Trading (IET) - in the order of 3 billion tones - since its greenhouse gas emissions are projected to be significantly lower during the commitment period than in 1990.

“Russia has reached considerable progress in moving ahead with activities under the Kyoto Protocol by making effective in January this year all directives and, thus enabling the Joint Implementation procedures in Russia,” says Klaus Rohland, The World Bank Country Director for the Russian Federation.

As of today, there are some 60 projects under preparation and it is expected as soon as this summer that the first projects will be approved by the Russian Government. The “Moscow Carbon Market Forum 2008” is the platform that provides broad opportunities to all the participants to share their experiences and to discuss the next steps.

“Emissions trading through carbon markets could play a win-win role in securing the capital needed to drive low-carbon investment in the CIS. This region could see huge gains in improved energy efficiency and the creation of green industries”, comments Marco Borsotti, UNDP Resident Representative in the RF.