Russian industry responses to climate change: the case of the metals and mining sector

Abstract

ABSTRACTGlobally, the metals and mining sector is a major contributor to GHG emissions. Climate change also poses significant challenges for the industry in a number of ways, including risks to infrastructure and equipment, transport routes and the cost of energy supplies. The sector is of particular importance to Russia, and yet very little is known about how the sector positions itself in relation to this key issue. This article conducts an in-depth look at the response of the Russian metals and mining sector to climate change. It looks at the key actors, their willingness to engage with the issue of climate change, preferred policy options and the strategies adopted to further their interests. The role of companies, prominent individuals and business associations is considered. The evidence suggests that, although there is widespread acceptance of climate change as a phenomenon, there is significant variation within the sector, with some companies proactive on climate policy, and others more reluctant. Different responses are attributed to reputational factors and the disproportionate influence of international and domestic policy developments on companies. Russian coal companies, directly threatened by any international attempts to reduce coal consumption, display the strongest opposition to efforts aimed at curbing emissions. The Russian government, far from thinking of transitioning to a low carbon future, is vigorously trying to expand the coal industry.Key policy insightsUnderstanding how Russia’s domestic position on climate policy is formed is fundamental for understanding the factors driving its international engagement on climate policy.The Russian government has no plans to phase out coal and is instead actively seeking to expand the coal industry. This highlights the obstacles to Russia’s commitment to climate policy at both the domestic and international levels.The socio-economic consequences of climate policy for the Russian coal industry are a key consideration for the government, with some regions heavily dependent on the industry for employment and electricity generation.