Post sponsored by NewzEngine.com

MIL OSI Translation. Region: Russian Federation –

Source: Ministry of Economic Development (Russia) – An important disclaimer is located at the bottom of this article.

The State Duma adopted in the first reading a draft federal law on exemption from value added tax for the services of a carbon unit registry operator. This measure will help reduce costs for climate project implementers and other participants in the carbon market.

Currently, VAT is imposed on the services of the registry operator for crediting carbon units to the account of the climate project executor when they are released into circulation, changing information about the climate project, opening an account in the registry, registering a climate project, as well as writing off carbon units from the account when transferring them to another participant.

“The initiative to abolish VAT on the services of the carbon registry operator is aimed at stimulating the implementation of climate projects and the development of the carbon market as a whole. The Ministry of Economic Development is developing various support measures that will help Russian companies become more actively involved in climate change projects and achieve carbon neutrality by 2060, as the President instructed,” noted First Deputy Minister of Economic Development of Russia Ilya Torosov.

The register of carbon units was launched in Russia on September 1, 2022. Its operator is JSC Kontur. The operator maintains registration and accounting of climate projects and carbon units issued by climate project implementers, as well as their movement within the framework of transactions on the exchange and over-the-counter markets. In addition, the register will take into account quota fulfillment units issued as a result of the implementation of an experiment in the Sakhalin region to limit greenhouse gas emissions. Currently, 14 climate projects have already been registered in the register, and 87,508 carbon units have been issued.

A carbon unit is a verified result of a climate project, expressed in a mass of greenhouse gases equivalent to 1 ton of carbon dioxide. A unit of quota fulfillment is the verified result of fulfilling the established quota, expressed in the difference between the established quota and the actual mass of greenhouse gas emissions, equivalent to one ton of carbon dioxide.

Note; This information is raw content directly from the source of the information. This is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

MIL OSI News (multilanguage service)