Financial University under the Government of the Russian Federation (Moscow, Russia):

S. A. Roginko, Prof., Head of the Center for Ecology and Development of the RAS Institute of Europe, e-mail: roginko@bk.ru

The subject of the analysis is the EU initiative to introduce the so-called Carbon Border Adjustment Mechanism developed within the framework of the “European Green Deal” adopted in 2019 and its possible impact on the Russian iron & steel industry. The author draws a parallel between the Border Carbon Correction Mechanism and the early EU initiatives on carbon taxation of flights of foreign airlines operating in airports of EU countries. Recommendations are given to Russian metallurgical companies on possible measures to hedge risks associated with this EU initiative, including interaction with federal agencies to develop counteraction measures, as well as non-corporate measures of technological modernization using low-carbon solutions and compensation of corporate emissions based on ecosystem emission absorption projects. The possibility of blocking the EU initiative in the international arena, including the positions of the leading world powers on this issue, is analyzed. The tactics of interaction on this issue with such large global exporters of iron & steel products as China, India, Brazil and others are proposed.

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