Report - UNDP Russia

What the government needs to do inorder to break out of the current energy andenvironmental malaise is so self-evident that wewill not spend much time here spelling it out.Measures to improve energy saving andenergy efficiency should embrace all levels of thenational economy. This involves a change in thecountry’s sectoral structure, prioritizingdevelopment of sectors, which are less energyintensive. This process has been underway sincethe 1990s, but it has been slow and uneven, withdevelopment concentrated in the service sector.Within sectors the emphasis should be onchangeover to new products, whose productionor consumption requires low power inputs (forexample, energy-efficient light bulbs instead ofconventional incandescent lamps), deeperprocessing of raw materials, especially in oilrefining, metallurgy, woodworking, etc. In manycases this approach requires radicalreconstruction of operating plants andconstruction of new ones. In the oil industry, thechallenge should be to minimize flaring ofsecondary gas to match standards of the world’sbest oil companies. The most effective steps atcompany level are for installation of equipment,which can make the same or similar productswith less energy (for example, replacement ofopen-hearth furnaces by oxygen steel-makingconverters or electric furnaces). At the ‘people’level, a large effect can be obtained by properorganization in the workplace and in daily life,and by following elementary rules of energyeconomy.The experience of all developedcountries gives a clear indication of the hugeenergy-saving reserves, which Russia has at itsdisposal. Use of this potential will invigorate thenational economy and radically reduce adverseeffects of the economy on the environment.7.11. Conclusions and suggestionsThe present situation in the Russianenergy sector, characterized by unacceptablyhigh and steadily growing negative impacts onthe environment combined with squandering ofenergy in the economy, amounts to an energyand environmental malaise. The impact of thefuel & energy sector on the environment isunacceptably high. Continuation of existingtrends will lead to large-scale disruption ofecological balances, massive pressure onecosystems, and disappearance of Russia’s role asa global environmental donor.In order to avoid such a scenario and toaccelerate transition to environmentallysustainable development Russia needs to:• dramatically enhance its environmentalsystem, ensuring its independence from thegovernment system for natural resourcemanagement;• develop efficient state environmental policyand vigilantly control its consistentimplementation;• enact regulations on more efficient use ofenergy and take steps to combatsquandering of energy. Such regulationsshould be supported by a system ofpenalties for non-compliance and failure totake appropriate measures;• ensure safety and security of all aspects ofthe energy sector, and of the nationaleconomy as a whole, through governmentinitiatives (based on legislation), whichensure that depreciated equipment isrepaired, decommissioned and replaced in atimely fashion;• take practical action to restructure theeconomy through increase in the share ofprocessing and high-tech industries.135