Federal Law "On Limiting Greenhouse Gas Emissions"

On 2 July 2021, the President of the Russian Federation signed the Federal Law "On Limiting Greenhouse Gas Emissions" (the "Law") aimed at regulating the relevant legal relations in connection with Russia's fulfilment of its obligations under the Paris Agreement as well as mitigating negative consequences for Russian exporters resulting from the application of the so-called ecological compensation mechanism developed by the European Union.

The Law:

• obliges organizations whose business or other activities that emit greenhouse gases with a mass exceeding a certain amount to report their greenhouse gas emissions
• introduces the term "greenhouse gas emission reduction target", which, as well as the procedure for assessing the achievement of such a target, will be established by the Russian government