The Greenhouse Gas Absorption Potential of Russian Forests and Possibilities for Carbon Footprint Reduction for Exported Domestic Products

Abstract

This paper analyzes the possibility to reduce the carbon footprint of exported products by implementing forest climate offset projects amid the introduction of the carbon tax on imports of high-carbon products, including those exported from Russia, by the European Union. The role of forests as absorbers of greenhouse gas (GHG) emissions differs significantly in Russia and in the EU. It is suggested that the EU’s climate neutrality policy aimed primarily at the reduction of direct CO₂ emissions by sectors such as power, industry, and agriculture is a consequence of the insignificant role of European forests in greenhouse gas absorption. By contrast, Russia can achieve climate neutrality not only by reducing greenhouse gas emissions, but also by increasing their absorption by forests and implementing forest climate projects (FCPs). Taking into consideration the UNFCCC baseline and additionality requirements, three FCP types can be proposed for implementation in the Russian Federation. The possibility to monetize the carbon sequestration function of Russian forests in the framework of carbon offset projects is assessed.