On 27 June 2009 the Russian Government issued Regulation No.884-r (the Regulation) which paves the way for implementation of AAU trades and affects the implementation of JI projects in Russia.
Under the Regulation, Sberbank, Russia’s largest bank, has been appointed to participate in pilot projects involving carbon trading to implement the provisions of Article 17 of the Kyoto Protocol, which permits inter-governmental emissions trading, or AAU trading.
The Russian Ministry for Economic Development (MED), with the Russian Ministry of Foreign Affairs and Sberbank, are now empowered to negotiate international treaties relating to Russia’s involvement in carbon trading with foreign authorities, and, upon reaching agreement, to present the draft treaties to the Russian Government for approval and accession.
The Russian Government has shown increasing interest in the performance and development of AAU trades and GIS. However, no further details have been provided about the surrounding legislative provisions that would relate to their implementation in Russia at this stage.
Changes to JI
The Regulation also authorises the MED, in conjunction with Sberbank, to propose changes (which have not yet been drafted) to Resolution No. 332 “On the Procedure for Adopting and Monitoring Projects Implemented under Article 6 of the Kyoto Protocol to the United Nations Framework Convention on Climate Change”, dated 28 May 2007, which governs the approval and implementation of all JI projects in Russia. These changes would authorise Sberbank to be involved in all activities leading to the receipt, transfer or acquisition of ERUs. Officials have said that despite the Russian Government also showing interest in AAU trades and GIS, JI will continue to operate in Russia.