“Low carbon business has become an important marketing tool”

Photo: iStock

In the coming years, the reduction in greenhouse gas emissions will come at the expense of a marked decline in economic activity. This is unfortunate, but true. However, for many Russian exporting companies, reducing emissions will still be a pressing issue.

The European Union is introducing a CBAM mechanism which stipulates that goods imported there will be taxed on the basis of their emissions at the time of production. This will level the competitive playing field for European companies so that they do not have to shift production to countries with milder climatic requirements. Countries such as China, India and the US are not far off in introducing similar mechanisms, as the need to reduce emissions is urgent for them.

In addition, low carbon intensity is an important marketing tool. For example, Rusal produces low-carbon aluminium under the Allow brand, for which consumers are willing to pay more. This also applies to other commodities, such as fertilisers and steel.

Cover photo: lcva2 / iStock