Russia Proposes Emission Fines Based on Company Revenue
Russian lawmakers are revising a draft law to impose fines on industrial enterprises that exceed emission quotas, with penalties tied to company revenue to incentivize modernization of pollution control systems and reduce air pollution.
Consensus
- The draft law on penalties for exceeding industrial emission quotas is being prepared for its second reading.
- Fines for exceeding emission quotas will range from 0.1% to 5% of a company's revenue, depending on the severity of the violation.
- Reduced fine rates are planned for natural monopolies.
- The goal of the law is to encourage enterprises to modernize pollution control systems rather than pay fines.
- The law is part of the federal project 'Clean Air,' implemented under President Vladimir Putin's directive.
- The draft law was approved in the first reading in June 2024.
- The initiative is being led by Deputy Alexander Kogan from the 'United Russia' faction in the State Duma.
- The law aims to improve air quality in industrial cities, with 12 cities participating in an experiment set to conclude in 2027.
Points of divergence
- The initiative is intended to make it more profitable for businesses to modernize pollution control facilities than to pay fines, and the press service of the Moscow Region branch of 'United Russia' reported this. — riamo
- The size of fines has been adjusted based on feedback from the committee and aligned with the actual cost of environmental protection measures. — interfax
Coverage (2 sources)
- Alexander Kogan: fines for emissions should stimulate enterprise modernization — РИАМО
- Fines for excessive emissions in Russia planned to be tied to enterprise revenue — Интерфакс