The Eurasian Economic Commission, jointly with State Corporation VEB.RF and the Green Finance Centre of Astana International Financial Centre, being national developers of taxonomies of the Russian Federation and the Republic of Kazakhstan, prepared some criteria for green projects of the Eurasian Economic Union countries (model taxonomy).
The model taxonomy was approved at the meeting of the high-level Working Group on developing proposals for narrowing the EAEU Member States’ positions within the climate agenda. "We are talking about a document approved in pursuance of the decisions adopted by the Eurasian Intergovernmental Council, which makes it possible to consider it as a full-fledged tool for selecting green projects to be financed across the EAEU space," believes Andrey Slepnev, EEC Minister in charge of Trade.
According to him, international experts estimate that the global economy will need 5 trn dollars a year until 2050 to achieve carbon neutrality. Simultaneously, they revised the list of industries and technologies that are compatible with low-carbon development and will be promoted.
The issue of differentiating green and non-green industries and technologies is just solved as part of creating green taxonomies (criteria for green projects). Nowadays, there are about 15 national systems across the globe, including the taxonomies of the European Union, the People's Republic of China, the Russian Federation and the Republic of Kazakhstan.
The objective of preparing the model taxonomy is to promote and narrow the Member States’ approaches within the systematic development of green finance tools across the EAEU space, as well as to ensure free capital movement. The prepared criteria for green projects were among the first criteria formed for the integration association, which can provide the basis for developing or updating national taxonomies.
"The model taxonomy can simplify the access of the EAEU countries’ investing companies to the capital markets of participating countries by placing financing instruments on the EAEU countries’ stock exchanges. The model taxonomy used a sector-specific approach, and the choice of industries is largely due to the carbon intensive industries and potential emissions reduction," Andrey Slepnev said.
At the same time, global approaches and best practices were analyzed, as well as national approaches to achieving climate goals were duly considered when determining the criteria. Relevant global approaches will enable ensuring high compatibility of the model taxonomy with other international standards, as well as its recognition by both the international community of standard developers and international investors.
Apart from the developed model taxonomy of green projects, the Working Group prepared a report on international and national approaches to developing systems for financing the low-carbon economy.
The information materials can be found at the link.
For reference
The high-level Working Group on developing proposals for narrowing the EAEU Member States’ positions within the climate agenda was established in accordance with Disposition No. 10 of the Eurasian Intergovernmental Council dated August 21, 2021. The Working Group is headed by Andrey Slepnev, EEC Minister in charge of Trade. The First package of measures (roadmap) on cooperation between the EAEU Member States within the climate agenda was approved by the EIC Instruction No. 18 dated October 21, 2022. One of the items of the roadmap contemplates preparing a report on analyzing national and international practices, in particular elaborating common approaches to the model taxonomy of the EAEU green projects.
