OREANDA-NEWS. March 30, 2011. "There is always a conflict between development and conservation. There always has been, and there always will be, but we need to strike a balance."

Vladimir Putin’s opening remarks:

Good afternoon.

We are meeting today to discuss environmental problems and the protection of the environment – issues that are of concern to almost everyone.  I suggest that we focus on specific, concrete measures for improving the environmental situation and, of course, place the key emphasis on future work. That takes on added importance in light of the preparation of a framework document called “The Basic Principles of Russian Ecological Policy in the Period until 2030.”

The intensive development of agriculture, transport, and industrial infrastructure inevitably affects the environment. Outdated production facilities that fall short of modern environmental standards and pollute the areas around them also have an adverse impact. Annual government reports indicate that man’s influence on natural ecosystems, far from diminishing, is increasing. The levels of air and water pollution in practically all parts of the country remain high.

The contamination of the soil is also a serious problem. I am referring not only to environmental degradation due to past economic activity but also to the steady growth of the amount of waste that is not recycled and rather ends up in landfills, which unfortunately are often ill-managed and cause harm to nature and humans alike.

On the whole, about 15% of Russian territory is in a critical condition in environmental terms, according to experts. Failure to act may lead to irreversible consequences for the environment. The main causes of these problems are thought to be defects in conservation regulations, inefficient management and poor control on the part of the state, and a lack of incentives for using modern clean and green technologies.

To remedy the situation, we propose to introduce some amendments to the legislation. Above all, these have to do with regulating environmental impact through the introduction of better practices: i.e., technologies based on the latest scientific achievements in reducing adverse environmental impact.

An important condition for such technologies, of course, is that they be financially feasible and economically effective. Incidentally, among our neighbours in the European Union, the introduction of such technologies has been mandatory since 1996. The problem there is being discussed and, in fact, these methods began to be introduced at the expert level in 1984-1988, when these ideas were first being proposed and developed.

Economic incentives can also be seen as a measure aimed at reducing human damage to the environment. Thus, if an enterprise invests in modernisation, energy conservation, and green technologies, it is entitled to preferential treatment. For instance, the cost of environmental protection can be taken into account in setting an environmental tax.

By the same token, we propose to increase fines for those enterprises that violate [environmental] laws and established rules. I should emphasise here that all such proposed changes are in keeping with international practice and are essentially aimed at enhancing the ecological security of the country, improving quality of life, and contributing to the health of the nation. And, of course, they give an extra boost to technological innovation in our industry and economy.

In this regard, I would like to say the following. Certainly, we should get rid of high-polluting production facilities, adhere to high environmental standards, and deal severely with those who violate these rules. We should, however, pursue this work steadfastly without creating new administrative barriers to the economy. We need a truly positive result – an effective system that does not create additional problems for businesses while ensuring our environmental well-being.

There is always a conflict between development and conservation. There always has been, and there always will be, but we need to strike a balance.  I understand very well the concern of those experts who are working to raise our labour productivity and [economic] competitiveness. But we all understand that in the absence of incentives, production will remain steeped in old methods and old technologies. [Such] a commitment to extensive as opposed to intensive development will only cause us to lag behind in advanced technologies and never catch up with our rivals – we will always be trailing behind. And we will be lagging not only in terms of environmental protection but economic development as well. We will be playing an endless game of catch up, which is not the right way [to do things]. It is not a path that will ever make us leaders – in terms of environmental protection and conservation, economic development, or social welfare.

Let us get down to business. Yuri Trutnev has the floor.

Yuri Trutnev: Thank you.