Report - UNDP Russia

mechanism for using national quota reserves toensure that developed countries assume and fulfilladditional obligations. The idea would be possiblewaiver by Russia and the Ukraine of their right to usea large portion of their forecast reserve to increasetheir quotas in the subsequent period, in exchange forguaranteed amounts of financing for GHG emissionreduction projects. These reductions could be fullyaccounted, or accounted at a certain discount, bythese countries when they assume quantitativecommitments for reductions in the next period. At thesame time the United States, Canada and othercountries with relatively high emission reduction costscould use the mechanism in order to assume tougherreduction commitments while keeping theirexpenditures within limits. The idea of exchangingquota reserves for environmental investments couldbe included in the new international agreement onclimate change for the period after 2012.Increasing numbers of experts are of theopinion that Russia needs to start work on a nationalGHGs cap-and-trade system, which should becompatible with international carbon market systems.The target is to create incentives for businesses toreduce emissions and to increase energy efficiency byflexible and cost-efficient methods.A regional carbon market has been inoperations in the EU since 2005, and most leadingcountries (the USA, Japan, Australia, New Zealand) arealso preparing to introduce national carbon markets.The EU is calling for creation of a global carbon marketamong OECD members by 2015.The Copenhagen Accord includes a pledgeby developed countries to provide USD 30 billion todeveloping countries in 2010–2012 for preparationand adaptation to global climate change. Russia, asa member of the G8, has declared its readiness to bea donor. It is worth considering the stance taken byPoland, which plans to make the level of itsdonations depend on the amount of income itreceives from selling a part of its national GHGemissions quotas.The immediate task is to determine thepriorities, forms and mechanisms of Russia’s financialinput to the new global financial climate initiatives.There may be scope for partner countries, whichrequire Russian aid, to use Russian donor assistance.Russia could propose a financial aid programme tohelp Trans-Caucasian and Central Asian countriesadapt to and cushion the impact of global climatechange. A regional carbon market initiative could alsobe considered.107