Enabling legislation has been drafted by the Ministry of Economic Development and local authorities in Sakhalin region.
Authorities intend to introduce requirements for companies whose emissions exceed 50,000 tonnes of CO2, imposing a quota on emissions and an accounting system to competent bodies. Accredited independent expert bodies are to oversee the implementation of the measures.
Any organisation exceeding the quota will have a fine imposed – 150 roubles ($2) per tonne of equivalent carbon dioxide. Sakhalin will be empowered to raise the fine, but not beyond 2,000 roubles per tonne.
The experiment is to be in place from 2021-2025 and Sakhalin is to be the first such site where a trade in greenhouse emissions is to be conducted. Sakhalin region has already announced its intention to be carbon-neutral by 2025. Media reports say large businesses in the region have shown an interest in buying carbon credits in order to lower their carbon footprint.
The Minister of Economic Development, Maksim Reshetnikov, says several regions are interested in such an experimental scheme. “We are moving towards a practice of regional experiments in order to apply the best experience later,” he said.
The first sale of hydrocarbon units is planned for July of next year. Authorities in the meantime can prepare an inventory of carbon emissions and absorptions, set up the necessary infrastructure and registry showing the type of activity that accounts for 80% of emissions.