1. Green Investment Scheme in Russia: Perspectives and Constraints Julia Dobrolyubova Expert on Climate Change and Kyoto Protocol REC/CEU GIS Workshop 24-25 April 2008 13, bld.2, 1 st Volkonsky lane, Moscow, 127473 Russia phone/fax: +7 495 737 6448 e-mail: dobrolubova@rusrec.ru www.rusrec.ru

2. What is the RREC? RREC is a part of regional environmental centres network acting in Central and Eastern Europe, Moldova, Ukraine, Russia, Caucasus and Central Asia. RREC was founded in 2000 by European Commission and Russian Academy of Civil Service under the auspices of the Russian President Our mission Promotion and introduction of advanced ideas, policies, standards and best practices by providing information dialogue and implementing practical actions to ensure environmental quality and sustainable development of Russia. Climate change and energy efficiency activities: assistance in implementation of the UNFCCC and Kyoto protocol; assistance in implementation of the UNFCCC and Kyoto protocol; Renewable Energy and Energy Efficiency Partnership (REEEP) regional secretariat. Renewable Energy and Energy Efficiency Partnership (REEEP) regional secretariat.

3. Assigned amount of the Russian Federation (100% of 1990 GHG emissions) Under the Kyoto protocol Russia is not to exceed the level of emissions of the base year (1990) in 2008-2012 on average. According to all the forecasts Russia will fulfill its quantitative commitments and will even have an excess of quota for trade. Quantitative commitments and emissions profile of Russia Bln t of CO2-eq

4. Kyoto Mechanisms: Opportunities for Russia

5. Advantages of Green Investment Scheme for Russia - more flexible than JI; -wider scale in comparison with JI; (number of developed and potential JI projects in Russia will not be sufficient to make a significant impact on economic development ); - improvement of the environment and contribution to sustainable socio-economic development; - effective supplement to environment policy - additional opportunity for private sector to attract investments.

6. Potential areas for GIS investments in Russia - energy-efficiency energy saving potential in Russia is estimated as 39-47% of current energy consumption, especially in such sectors as energy, energy- intensive industries and housing and public utilities; - renewables; - modernisation of industrial infrastructure; - improvement of the environment; - water management; - forest conservation projects; - adaptation measures; - capacity building

7. Constraints for GIS Development in Russia - existing budgetary regulations in Russia; - no internationally agreed procedures for GIS; - no legal framework for AAUs trading in Russia; - no authorised body to control of funding and expenditures under GIS projects; no criteria for projects to be financed through GIS; - no criteria for projects to be financed through GIS; - concerns on lack of tradable AAUs in a post-2012 period; - insufficient contribution to climate change mitigation efforts, insignificant effects for economy and the environment; - competition between JI and GIS; - low interest in advancement of AAUs trading due to high oil and gas export revenues; -low awareness among stakeholders; - lack of analytical works and studies.

8. Issues to be further discussed - integration of GIS procedures into post-2012 agreement - potential areas for GIS projects (climate mitigation, adaptation, environmental investments, capacity-building, etc.); - eligibility criteria for GIS; - comparability of units under different mechanisms; - monitoring, reporting and verification of achieved emission reductions; - advanced GIS approaches (programmatic, possible linkages with emission trading schemes, non-domestic projects).

9. Thank you for your attention! Julia Dobrolyubova Phone/Fax: +7-495-737-6448 e-mail: dobrolubova@rusrec.ru