Russia’s private sector is increasingly investing in climate projects, reflecting a broader global trend towards environmental sustainability and the decarbonization of industry. This shift is driven by both regulatory pressures and market incentives, as companies recognize the long-term benefits of reducing their carbon footprints and the growing demand for green investments. Russian firms are particularly focusing on renewable energy projects, energy efficiency improvements, and carbon offset initiatives. By diversifying their portfolios to include these climate projects, they aim to mitigate environmental impact and enhance their competitive edge in a global market that increasingly values sustainability.
Among Russian companies, SIBUR stands out with the largest carbon credit assets. As the country’s leading petrochemical company, SIBUR has made significant strides in incorporating environmental considerations into its business model. The company has invested in a range of projects designed to reduce greenhouse gas emissions, improve energy efficiency, and promote sustainable practices across its operations. SIBUR’s substantial carbon credit assets reflect its proactive approach to environmental stewardship, positioning it as a leader in Russia’s burgeoning market for carbon credits. This not only underscores the company’s commitment to sustainability but also enhances its reputation and attractiveness to investors who prioritize environmental, social, and governance (ESG) criteria.
The expansion of climate projects within Russia’s private sector, led by companies like SIBUR, illustrates a growing recognition of the importance of sustainable development. It highlights a significant shift towards aligning corporate strategies with global climate goals, which is essential for both environmental conservation and long-term economic resilience. As more Russian companies follow suit, the cumulative impact of these efforts could contribute substantially to the country’s overall emissions reduction targets and its transition to a low-carbon economy.
The goals of reducing greenhouse gas emissions and preventing global warming can be achieved only through the joint efforts of the world’s largest economies.
The world’s leading companies pay a great deal of attention to the climate agenda: they are reducing their production-related CO2 emissions and receiving carbon credits for doing so. However, a global market for carbon credits that could provide a universal incentive for reducing CO2 emissions in different countries is yet to emerge.
In Russia, the carbon market is still in its early days. Nevertheless, SIBUR, Russia’s largest producer of polymers and rubbers and a partner of Sinopec, has already completed seven climate projects that have modernized its production sites, resulting in a total declared reduction of 10.8 million tonnes of CO2 emissions over a period of 10 years. A third of these emissions have already been certified by Russian or international verification bodies, and SIBUR has already received carbon credits for them.
So far, SIBUR has completed several sales of carbon credits on a pilot basis, including through the Polkadot blockchain platform and through Russia’s National Mercantile Exchange. The company has also registered one of its climate projects—the launch of a solar power plant at its Polief facility—on the Global Carbon Council platform created by Qatar for carbon trading.
Carbon footprint reports go global
Although the European Union’s Carbon Border Adjustment Mechanism (CBAM) has caused a great deal of discussion, it is nevertheless capable of creating common, industry-wide rules for the global carbon credits market. Companies supplying goods to EU countries will have to report the carbon footprint of their products and, starting in 2026, also pay taxes if their CO2 emissions greatly exceed emissions from similar products made in Europe.
Suppliers of products to the EU will have to show their carbon footprint according to a methodology that is recognized by both their own country and the European Union. This will help unify the rules for calculating and verifying CO2 emissions in different countries, which could eventually lead to mutual recognition of their carbon credits.
Russia is now proposing something similar for the BRICS countries: that they unify the methodology used to calculate CO2 emissions and ensure mutual recognition of each other’s carbon credits in order to make cross-border trade possible within a voluntary common market. This would make carbon credits a lever for decarbonization not only in individual regions but also in countries that account for more than 40 percent of the world’s population.
Over time, a reduced carbon footprint will become an increasingly important element of consumers’ choice in various countries. SIBUR is creating a competitive advantage by investing in a low-footprint approach. The company reduced carbon emissions by 25 percent last year, and is using an ever-increasing amount of post-consumer plastic in its production of new products. And it is already using rPET granules in the production of plastic bottles. The next step for SIBUR is the chemical recycling of plastic waste, which should increase the use of recyclables in production considerably.
