Photo by: Jay Roode / iStock
Tools for managing climate risks do exist. And there are many of them. For example, the government should encourage banks to be more willing to finance green projects to reduce greenhouse gas emissions, retrofit municipal utilities, steel mills and the power sector.
To this end, credit rate subsidy programmes should be available, as at present green projects are financed on a general basis at the market rate. Meanwhile, the technological upgrading of production facilities is quite expensive, and without preferential lending will not be deployed to the fullest extent.
On the other hand, Western countries are trying to influence business through a carbon tax: companies pay €50–80 per tonne of greenhouse gas for exceeding emission limits.
These funds are replenished by the EU Green Deal (Green Pact for Europe), which finances technical upgrading of enterprises and new environmentally friendly projects. In our country, such a mechanism was being considered, but for now its launch has been postponed.
It seems to me that the appearance of the tax is an inevitable story. Our neighbours in the Middle East are also planning to implement the Carbon Border Adjustment Mechanism, so our exports — both to the West and to the East — will fall under the same regulation. Therefore, we will have to adopt it one day.
Cover photo: Spitzt-Foto / iStock
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