Tax Regulation of Countries in the Framework of Greening Business (using the example of the Russian Federation and the EU)

Abstract

In the past three decades, the role of environmental protection in the environmental and climate agenda, which shapes the trends of “green” economic development, has been continuously increasing. The purpose of this study is to examine this issue in the context of the experience of the European Union (EU) and regulatory principles of taxation to prevent the effects of climate change. Using the example of the EU and the Russian Federation, the reaction of a system for economic regulation of greenhouse gas emissions, which is at the initial stage, is considered. A SWOT-analysis of Russia’s “green” exports to the EU countries has been carried out, which contains forecasts of a decline in demand for Russian oil and oil products, coal, gas and metals and an increase in demand for electricity from low-carbon sources. Taking into account the extremely high carbon intensity of all Russian exports and its product and country structure, it is suggested that notable damage may occur after 2026 if the Carbon Border Adjustment Mechanism (CBAM) expands its product mix and scope. In the presence of significant risks for the Russian Federation in the context of hydrogen energy development, the drivers for increasing competitiveness and the corresponding positions of our country in the conditions of decarbonization are determined, PEST-analysis of the Russian economy on the way to the “green” market course is carried out. The practical significance of the study lies in the proposal to use the experience of tax regulation in the EU countries as part of greening business in the Russian economy.

Keywords

• tax policy
• environmental taxation
• tax regulation
• european union
• low hydrocarbon
• hydrocarbon emissions
• green taxes