Analysis of the Economic Dynamics of the Implementation of the

Green Course in Russia

Ruslan Ilyasov

Chechen State University, Grozny named after A.A. Kadyrova, Grozny, Russian Federation

Keywords: Economy, climate, global nature, green technologies, renewable energy, national conditions, climate change,

economic and environmental priorities.

Abstract: Reducing net greenhouse gas emissions to zero even within 30 years by 2050 is a highly ambitious goal,

especially for Russia, which has so far not taken active action in the field of combating climate change. This

goal must be achieved through a fair, inclusive and gradual economic transformation that takes into account

the interests of all and everyone. To avoid giving wrong market signals and creating new imbalances in the

economy, the transition to a new development model should eliminate direct public spending to the maximum

extent and should focus on stimulating private investment in green sectors of the economy, reallocating

subsidies from the fossil fuel and nuclear energy sectors to benefit of renewable energy, as well as improving

institutions and regulation.

1 INTRODUCTION

The key goal in the field of clean energy should be to

provide at least 20% of electricity generation

excluding large hydroelectric power plants and at

least 10% in the transport and heating sectors, taking

into account the electrification of these sectors

through renewable energy and excluding traditional

biomass by 2030 and the transition to 100 % RES in

the entire energy sector by 2050. Also, for the period

up to 2030, it is planned to reduce the energy intensity

of Russian GDP by 40% compared to the level of

2007 (fulfillment of the goal that was set for the

period up to 2020), for the period up to 2050 - a

decrease in the energy intensity of Russian GDP to

the world average level. In addition, by 2050 there

should be no vehicles with internal combustion

engines left in Russia. Each subject of the Russian

Federation must develop and fulfill its regional goals

for the share of renewable energy and energy

efficiency (Babina, 2020).

With the large-scale development of renewable

energy and related industries, special attention should

be paid to the participation of civil society in this

process and the creation of opportunities for the

development of small and medium enterprises, local

https://orcid.org/0000-0001-7040-798X

initiatives and local economies of regions, cities and

settlements. Clean energy should not become an

oligopoly with a few big players and closed market

entry. It also needs to eliminate support for false

green technologies such as carbon capture and storage

(CCS), large hydropower, and nuclear power,

including controlled fusion. The replacement of coal

with natural gas in electricity generation should not

be seen as an intermediate step in the energy

transition and decarbonization of the energy sector.

To achieve these goals, the following measures must

be taken (Lapaeva, 2019; Gakaev, 2019; Murtazova,

2021):

General measures to support the development of

clean energy

− development and implementation of the phase-

out of subsidies for fossil fuels and nuclear

energy and the reorientation of subsidies to the

renewable energy sector, as well as the

development of international cooperation in the

field of phase-out of subsidies for fossil fuels

and nuclear energy;

− development and implementation of a phase-

out of cross-subsidizing in the electric power

industry;

− development and implementation of plans for

the gradual abandonment of (1) the expansion

Ilyasov, R.

Analysis of the Economic Dynamics of the Implementation of the Green Course in Russia.

DOI: 10.5220/0011556500003524

In Proceedings of the 1st International Conference on Methods, Models, Technologies for Sustainable Development (MMTGE 2022) - Agroclimatic Projects and Carbon Neutrality, pages

153-158

ISBN: 978-989-758-608-8

 2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)

153

of the geography of fossil fuel production (the

introduction of a ban on the development of

new deposits of coal, oil and gas),

− (2) extraction and (3) combustion of fossil

fuels;

− development of strategies for a just energy

transition for regions with coal mono-

specialization, primarily for the Kemerovo

region (Kuzbass), taking into account all

economic, environmental and social aspects

and the subsequent expansion of this practice to

the regions of oil and natural gas production;

− development of a roadmap for the development

of bioenergy based on waste from agriculture,

forestry and public utilities;

− development of a roadmap for the development

of green hydrogen energy and other Power-To-

X technologies;

− Strengthening measures to control the use of

fuel oil and diesel fuel, especially in the Arctic

regions and places of traditional residence of

indigenous peoples of the North, Siberia and

the Far East.

− Improving Energy Efficiency

− introduction of apartment-by-apartment heat

energy metering through the obligatory

requirement to install apartment heat meters in

all new buildings and their phased introduction

in existing buildings, as well as the introduction

of payment for consumed heat energy

according to apartment heat meters;

− return of the requirement to conduct an energy

audit at least once every five years for

budgetary institutions and organizations

consuming fuel and energy resources worth

more than 10 million rubles. per year, as well

as for organizations that carry out activities at

the expense of budgets of various levels (the

requirement of Article 16 of the Federal Law

No. 261‑FZ of November 23, 2009 “On Energy

Saving and Energy Efficiency Improvement

and on Amendments to Certain Legislative

Acts of the Russian Federation”, canceled in

2019);

− reduction of unreasonable consumption of

electricity in cities through the restriction of

illuminated advertising and the introduction of

minimum lighting standards for establishments

closed at night;

− development and implementation of a

comprehensive program to reduce energy

losses in heat and power networks, as well as

water supply networks;

− popularization of energy savings among the

population and corporations, as well as

stimulation of the implementation of energy

management standards in organizations,

including the international standard ISO 50001.

RES in the electricity sector (Gakaev, 2018):

− development of competition in the electricity

sector (in particular, creation of opportunities

for individuals to choose their electricity

supplier);

− waiver of requirements for localization of

production of equipment for RES, as well as

waiver of introduction of requirements for the

export of equipment for RES within the

framework of the RES Capacity Supply

Agreement (PSA) mechanism;

− transition to competitive selection of projects at

the second stage of the implementation of the

CSA RES support mechanism in 2025–2035.

based on a one-part price that takes into

account capital and operating costs, cost of

capital and installed capacity utilization factor

(ICU), and not only on the basis of capital

costs, as is currently the case;

− granting a non-penalty deferment to RES CSA

projects due to the COVID-19 factor (for

investment projects with a planned start date

for power supply in the period up to

12/31/2021, it is necessary to introduce a non-

penalty deferral of facility commissioning for a

period of up to 9 months, with a shift in the

delivery deadline for RES CSA for the duration

of the declared delay, but not more than 3

months from the initial end date of power

supply under the contract);

− Rejection of the CSA mechanism for RES after

2035 and the rejection of other non-market

mechanisms for the development of the electric

power industry;

− providing the subjects of the Russian

Federation with the opportunity to make

independent decisions regarding the

development of RES in the retail electricity

market, not limited by the maximum volumes

of compensation for losses of grid

organizations due to electricity from RES at a

level of no more than 5%;

− development of a comprehensive plan to equip

all landfills with landfill gas collection

facilities and ensure its use for energy

purposes, as well as reducing the standard

installed capacity utilization factor (ICUF) for

landfill gas power plants from 65% to 50%

(Vladimirov, 2019; Molchanova, 2019);

MMTGE 2022 - I International Conference "Methods, models, technologies for sustainable development: agroclimatic projects and carbon

neutrality", Kadyrov Chechen State University Chechen Republic, Grozny, st. Sher

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− development of a support system for local

small-scale initiatives in the field of renewable

energy (energy cooperatives, microgeneration

projects, distributed networks with a high share

of renewable energy) in the interests of local

communities;

− taking measures to reduce and gradually stop

the use of fuel oil and diesel fuel as an energy

source in the places of residence of the

indigenous peoples of the North, Siberia and

the Far East and replace them with renewable

energy sources;

− approval of minimum prices for the supply of

surplus electricity to the grid in the

microgeneration segment at a level not lower

than the electricity tariffs for the population.

2 RESULTS AND DISCUSSIONS

The transition to a circular economy is a huge

challenge even for many European countries that

have been dealing with this problem for several

decades (Egorova, 2020). The development of a

circular economy requires the introduction of new

business models based on less carbon-intensive

materials and processes, as well as the transition from

a linear consumption economy in favor of a more

sustainable model that involves the long-term use of

goods, the development of joint consumption

(sharing), the elimination of unnecessary and

dangerous for the environment of disposable goods

and packaging (particularly plastic), waste reduction,

waste recycling and the use of recycled materials. By

2050, carbon neutrality must be achieved in the

industrial sectors that currently generate the most

greenhouse gas emissions from industrial processes,

at least in the production of iron and steel, as well as

cement. In the world, some of the largest producers of

these materials are already taking on such obligations

on their own. So, on September 1, 2020, a group of

40 leading cement producers committed to switch to

the production of carbon-neutral cement by 2050. The

initiative was initiated by the Global Cement and

Concrete Association (GCCA). Companies intend to

achieve carbon neutrality by reducing (1) direct and

(2) indirect emissions associated with the use of

energy for cement production, (3) the introduction of

carbon capture and storage technologies, (4) reducing

the content of cement clinker in cement and cement

in concrete , as well as more efficient use of concrete

in the construction of buildings and infrastructure, (5)

recycling of concrete contained in construction debris

and demolition waste, (6) increasing the absorption of

carbon dioxide by concrete as a result of the

recarbonization (absorption) process.

The EU is implementing the Green Steel for

Europe project, aimed at developing a roadmap for

the decarbonization of the European steel industry.

Currently, the metallurgical industry lacks uniform

standards and a clear definition of green metal. There

is also a lack of actions aimed at reducing emissions

directly from production processes, and not from

energy sources, although several large foreign steel

companies are already implementing projects to

radically reduce emissions from production processes

(for example, by using green hydrogen instead of

natural gas to restore ores). In agriculture, the main

ways to reduce greenhouse gas emissions can be (1)

regenerative or regenerative farming practices, (2)

waste reduction, and (3) composting. Regenerative

agriculture involves minimizing soil disturbance and

increasing soil carbon content (Meckling, 2020).

Examples of regeneration methods include the use

of organic fertilizers, crop rotation, reduced tillage,

growing more varieties crops to promote

agrobiodiversity. Reducing the amount of food waste

can be achieved through the development of food

sharing and discounts on products with an expiration

date. Carbon sequestration through improved

agricultural practices has huge potential to reduce

greenhouse gas emissions. Indigo Ag estimates that if

the organic matter content of all the world's

agricultural land is increased from today's 1% to pre-

industrial levels of about 3%, 1 trillion tons of carbon

would be sequestered, the equivalent of all industrial

emissions since the industrial revolution. Soil carbon

content can be increased through a variety of so-

called carbon farming practices. No other sector of

the economy has such a potential to absorb carbon

from the atmosphere. Russia’s key goals in the area

of the circular economy should be: transition to

carbon-neutral production of metals and concrete, as

well as carbon-neutral agriculture by 2050, reducing

greenhouse gas emissions from per capita food

consumption to a level consistent with preventing an

increase in the global average temperatures by more

than 1.5°C by 2050, including a 50% reduction in the

production and consumption of animal products by

2050, transition of at least 40% of the population to

sustainable diets by 2030 and 75% of the population

by 2050, reduction of municipal solid waste

generation per inhabitant by 30% by 2030 and by

60% by 2050 compared to 2020, as well as achieving

a recycling rate of at least 80% of generated waste by

2050 and taking steps to develop modern, low-waste

business models that do not encourage excess

Analysis of the Economic Dynamics of the Implementation of the Green Course in Russia

155

consumption. To achieve these goals, the following

actions should be taken (Reynard, 2020).

General Measures for the Development of the

Circular Economy in Russia (Egorova, 2020):

− introduction of a carbon price (carbon tax);

− integration of the principles of the circular

economy into all key strategic documents of the

country, including all strategies, road maps,

programs for the development of industries,

etc.;

− development and inclusion of clear quantitative

requirements for greenhouse gas emissions and

compliance with the principles of the circular

economy in the requirements for public

procurement;

− promoting remote work as the new norm for

office workers during and after the end of the

COVID-19 pandemic, including the possibility

of remote work from other localities;

− development and adoption of a framework

document for the implementation of the

circular economy on the territory of the Russian

Federation according to the principles of "zero

waste", with prioritization of the stage of

conservation of primary resources and

minimization of waste production, including in

the field of production and consumption waste

management by fractions, electronic, food

waste, textiles, as well as hazardous, medical

and biological waste;

− introduction of positive economic incentives

and regulatory support for the principles of

waste prevention, maximum use of raw

materials and materials, reuse, maintainability

and product life extension, legislative

restrictions and negative economic incentives

for the circulation of disposable goods;

− development of fiscal measures and measures

of positive economic incentives, other

measures to prioritize the use of products and

materials intended for reuse with the exclusion

of the stage of material utilization, as well as

products and goods from secondary raw

materials;

− development of a public education system,

including federal channels and the media, on

the principles of "zero waste" and

popularization of a green lifestyle among the

population;

− assistance in the implementation of initiatives

for the reuse of goods and the dissemination of

cooperation in this area;

− formulation and implementation of priorities

according to the principles of "zero waste" in

the implementation of public procurement and

activities;

− implementation of fiscal policy based on the

principle “the polluter and the waste producer

pays for the amount of waste generated” and

the introduction of a “pay what you pollute”

scheme, which charges waste producers based

on the actual amount of waste generated and

provides incentives to reduce the volume of

waste, both mixed and segregated at source;

− development of a framework document for the

implementation in the territory

− Russian standards for the life of goods and their

maintainability in order to prevent the

implementation of planned aging at the stage of

production of goods and to maximize the life of

goods;

− development of measures to improve the

resource efficiency of manufactured products,

especially in construction, automotive and

electronics, which can be used as mandatory

product standards;

− introduction of the obligation of manufacturers

of goods and equipment to cover 100% of the

costs of processing and reusing materials

(Reynard, 2020).

3 CONCLUSIONS

Forest loss and climate change are interdependent

processes. The restoration and protection of forests

and swamps, the development of sustainable forestry

and the use of abandoned agricultural land are the

most important tasks that Russia needs to solve in the

next decade. A key qualitative achievement should be

the transition from the development of the remaining

wild forests to intensive forestry on previously

developed lands and plantation forestry. Up to 300

million m3 of wood per year should be grown on 50

million hectares of agricultural land that has been

retired from use in Russia, which will create up to

100,000 jobs. In the world, there is an intensive

involvement of land that is being retired from

agricultural use, limited or unsuitable for modern

agriculture, in forestry (from protective afforestation

and classical forestry to plantation forestry) or

agroforestry (growing forests on agricultural land

with the dual purpose of obtaining forest products and

forming more favorable conditions for growing

crops). Large pulp and paper enterprises built in the

world in the 21st century, as well as most large

woodworking enterprises, are oriented towards the

MMTGE 2022 - I International Conference "Methods, models, technologies for sustainable development: agroclimatic projects and carbon

neutrality", Kadyrov Chechen State University Chechen Republic, Grozny, st. Sher

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provision of raw materials through forest plantations

or through highly developed intensive forestry.

Similar changes are needed in Russia. Particular

attention should be paid to ensuring the fire safety of

forests. It is necessary to reduce the areas of "control

zones" of forest fires, where non-extinguishing is

allowed, from about half to about a quarter of the area

of forest land. To ensure the full protection of forests

and effective extinguishing of forest fires, the total

amount of funding for the powers transferred to the

constituent entities of the Russian Federation in the

field of forestry should be tripled, up to 90 billion

rubles a year in the prices of early 2020.

There are several principles of the cyclical

economy in metallurgy (Egorova, 2020):

− development of a roadmap for the

decarbonization of the metallurgical industry;

− development of a system of government grants

for research and commercialization of new

technologies in the production of metals with

low greenhouse gas emissions;

− development of a definition and methodology

for assessing carbon-neutral metals;

− provision of tax incentives and preferential

loans to producers and consumers of carbon-

neutral metals;

− Encouraging the use of arc steel-smelting

furnaces using electricity from renewable

energy sources and green hydrogen, with a

gradual phase out of blast furnaces and

converter furnaces, which are mainly fueled by

metallurgical coal (Molchanova, 2019).

And also we can distinguish the following principles

of the cyclical economy in the production of cement

and concrete:

− development of a roadmap for the

decarbonization of cement and concrete

production;

− development of a system of state grants for

scientific research and commercialization of

new technologies in the production of low-

carbon and carbon-negative concrete;

− development of a definition and methodology

for assessing carbon neutral cement and

concrete, as well as carbon negative concrete;

− provision of tax incentives and preferential

loans to producers and consumers of carbon-

neutral cement and concrete;

− encouragement to reduce the content of clinker

in cement and cement in concrete;

− promotion of the use of waste from other

sectors of the industry in the composition of

cement;

− encouragement of long-term operation of

buildings, close to the normative service life, to

prevent premature demolition of buildings.

Implementation of the principles of the circular

economy in agriculture (Reynard, 2020):

− development of a roadmap for the

decarbonization of agriculture, including the

potential for soil carbon storage and the use of

animal waste for energy and fertilizer

production;

− development and adoption of a law on carbon

agriculture, aimed at stimulating the

development of climate-friendly agricultural

practices, sequestration and storage of carbon

in the soil (reduction of tillage, preservation of

crop residues and cover on the soil surface, the

use of crop rotation);

− Introducing a ban on keeping animal waste in

lagoons, with the ensuing obligation of farms

to send animal waste for processing into

biofuels and fertilizers;

− creation of a system of concessional lending

and tax incentives

− for farms that apply regenerative and organic

farming methods;

− implementation of a free training program for

farmers in regenerative and organic farming

methods;

− Development of a support system for local

small-scale initiatives in the field of organic,

regenerative and carbon agriculture (farms,

cooperatives) for the benefit of local

communities and the reorientation of the

agricultural industry from the production of

food in large quantities to the production of

food suitable for the transition to sustainable

diets.

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