OREANDA-NEWSKPMG audit company has prepared a presentation on the impact on Russian producers of the cross-border carbon tax, the introduction of which is currently being discussed in the European Union (EU).

It was made at a meeting of the working group of the ecology and nature management Committee of the Russian Union of Industrialists and entrepreneurs (RSPP) on Monday, July 6. RBC got acquainted with the presentation, its authenticity was confirmed by one of the participants of the meeting.

In an optimistic scenario, the EU will only introduce a tax in 2028 and will charge for the difference between actual carbon dioxide (CO2) emissions from the production of goods and the EU reference volume. The burden for Russian producers in this case will be €6 billion over three years (2028-2030). Suppliers of gas, Nickel and copper will suffer the most: the carbon intensity of their products exceeds the European benchmark by two or three times. The production of oil, petrochemicals, potash fertilizers and other exported goods fully meets the European standard.

In the baseline scenario, the tax is introduced in 2025 and applies only to direct greenhouse gas emissions (directly from production). In this case, the burden for Russian exporters will amount to €33.3 billion in 2025-2030.
In the most negative scenario, the tax could cost Russian suppliers €50.6 billion by 2030. This will happen if the cross-border tax is introduced in 2022 and applies not only to direct, but also to indirect CO2 emissions — this means emissions from sources belonging to other organizations, but somehow related to the activities of the exporter.