Perspectives of carbon tax introduction in the Russian Federation

. This paper analyses the prospects for the introduction of a carbon tax on the territory of the Russian Federation and the impact of the environmental agenda on the financial and tax policy of Russia. The authors consider the advantages and disadvantages of the carbon tax in comparison with other economic and legal mechanisms. The paper considers the definition of the concept of carbon tax and its essence, analyzes the role of carbon tax in the implementation of state policy in the field of environmental protection in terms of decarbonization. The authors also propose possible strategies for the introduction of a carbon tax in Russia.


Introduction
During the 26 th UN Climate Change Conference in 2021, the President of the European Commission, Ursula von der Leyen, issued a statement: "Put a price on carbon, nature can no longer pay the price for us [1]."Experts agree that the current measures to reduce greenhouse gas emissions are not enough to keep the pace of global warming within 1.5-2 degrees Celsius range defined by the Paris Agreement.More radical steps are needed: spreading the practice of trading in permits for the emission of hydrocarbons, introducing carbon taxation, creating an independent system of international control over greenhouse gas emissions and imposing responsibility for non-fulfillment by states of their obligations in terms of decarbonization.At the end of this Conference, the participating countries signed the Glasgow Climate Pact, which included proposals for the creation of carbon markets and a carbon tax.
Taking into account the policy pursued by the European Union to combat global climate change and the data of Federal Service of Russia on Hydrometeorology and Monitoring of the Environment showing that global warming in Russia (caused, among other things, by excessive greenhouse gas emissions) is 2.5 times faster than on the entire planet [2].According to these data, we can conclude that Russia is making a significant contribution not only to the overall warming on the entire planet, but above all, on its own territory.In this regard, it seems appropriate for the Russian Federation to identify and approve mechanisms for the reduction of hydrocarbon emissions as soon as possible.Guided by the proposals made at the UN climate conference and the obligations assumed by the Russian Federation under the Paris Agreement and the Glasgow Pact, the authors consider the most popular mechanisms for the reduction of greenhouse gas emissionscap-andtrade and carbon taxin order to identify possible strategies for decarbonization in Russia for account of economic and legal mechanisms.

Materials and Methods
The purpose of the study is a comprehensive and multidimensional analysis of the nature of the carbon tax and the mechanism associated with the taxation of emissionshydrocarbon emission quotas, as well as the study of the prospects for the introduction of a carbon tax in the Russian Federation.The object of the study is the totality of social relations that arise in connection with the taxation of hydrocarbon emissions and the fulfillment by the state of international obligations in terms of decarbonization.The subject of the study is the prospects for the introduction of a carbon tax in the Russian Federation.
In order to achieve the goal of the planned study, the following tasks were formulated, which, in our opinion, contribute to the most complete analysis of the object and subject of the study.These tasks include the following: 1. Definition of the concept of carbon tax and its essence; 2. Consideration of the advantages and disadvantages of the carbon tax in comparison with other economic and legal mechanisms for the reduction of hydrocarbon emissions; 3. Analysis of the role of the carbon tax in the implementation of the state policy on environmental protection in terms of decarbonization; 4. Determination of the prospects for carbon taxation in Russia.
The methodology of the research is reasoned by the use of both general scientific and private scientific methods of research.The interrelationship of the applied methods is largely due to the interdisciplinary nature of the study.It seems more than obvious that carbon taxation as a phenomenon can not be considered solely in the context of legal sciences, given the all-encompassing property inherent in it.It seems relevant to formulate the most likely and acceptable strategies for the introduction of a carbon tax within the framework of this study.

Results
According to the analysis of Russian and foreign sources, it was concluded that the introduction of a carbon tax is often associated with the creation of a market for hydrocarbon emission quotas.
Quotas for greenhouse gas emissions are as follows.The state sets the maximum allowable level of emissions it can be the same for the entire economy or differentiated depending on the industry, region, etc.Then the state issues a certain number of emission permits within the established level.The mentioned permissions are quotas.The quota allocation process can be built in several ways.The state can distribute quotas between companies free of charge in proportion to the current level of emissions produced by them.Moreover, the quota system can be based on the sale of permits through tenders.In case of going beyond the acquired quotas, the company will be forced to pay a fine, the amount of which will significantly exceed the market price, or buy additional quotas from other organizations.The latter option would allow greener companies to raise capital by selling unused emission permits to other market participants.
The advantage of quotas is that in the context of the fulfillment by the state of its international obligations in terms of decarbonization, their further distribution among various companies and organizations seems to be a more effective mechanism for reducing emissions by setting a limit.The most difficult thing here is the development of criteria for a fair distribution.
However, the introduction of a cap-and-trade system presents some dilemmas.Firstly, there is a risk of high quota volatility in the face of economic uncertainty.Thus, during the financial and economic crisis of 2008-2009 most European companies were forced to reduce production, which caused the demand for permits to fall and subsequently there was a decline in prices for permits [3].Secondly, quotas involve high administrative costs.The introduction of quotas requires the creation of new reporting forms for enterprises, as well as the organization of a platform where permits will be traded.In addition, it is necessary to train employees of organizations in the implementation of financial management in terms of the use of quotas.Finally, corruption risks can not be ruled out in the trading of quotas.When choosing the criteria for allocation of quotas between organizations, some market participants may be tempted to influence the regulator in order to establish a more favorable quota system for them.
One way or another, despite the ambiguous nature of quotas, trading in permits for greenhouse gas emissions has become widespread in foreign countries.
The carbon tax (in the Russian-speaking media space, we may find the wording "emissions tax") is a draft mechanism for the regulation of greenhouse gas emissions, according to which it is proposed to impose on organizations the obligation to pay a certain amount of money to the state budget for each unit of emissions.The proposed cross-border carbon tax project by the European Commission aims to reduce greenhouse gas emissions by 2030 by at least 55 % compared to 1990 levels and achieve carbon neutrality by 2050 [4].At present, carbon tax has been introduced in 34 countries: UK, Canada, some EU countries, Argentina and others.As of April 2022, the highest carbon tax rates are set in Uruguay ($137.3 per 1 ton), Sweden ($129.89 per 1 ton), Switzerland and Liechtenstein (at $129.85 per 1 ton) and Finland (at $129.85 per 1 ton).$85.1 and $58.58 per 1 ton for transport fuel and other fossil fuels, respectively) [5].The average world rate is $36.45 per 1 ton.The carbon tax has a number of advantages.Firstly, unlike quotas, which are subject to the risk of high volatility, the tax implies certain costs for business due to the determination of the rate in the tax legislation.Secondly, the introduction of a carbon tax is associated with lower administrative costs than the formation of a market for trading in quotas, since the state already has a tax system, tax authorities are functioning, and the reporting form of legal entities has been determined.
At the same time, the introduction of a carbon tax seems to be a difficult decision from a political point of view.In the changed political and economic conditions, as well as a significant tax burden on businesses, the introduction of an additional tax may turn out to be an unpopular decision and an additional financial burden that not every government will be ready to accept.

Discussion
The idea of limiting atmospheric emissions through the introduction of economic and legal mechanisms is not new.The British economist, Nobel Prize winner in economics Ronald Coase, in 1960 in his article "The Problem of Social Costs", considering the problem of the actions of citizens and organizations, proposed to minimize "undesirable pollution" using market mechanisms, namely, trading in quotas [6].His colleague, the author of the theory of externalities, Arthur Pigou, had the opinion that such external effects should be offset through government intervention and the introduction of an emission tax [7].
Although initially the idea of creating a so-called emissions market was perceived by the public in general and scientists, eco-activists in particular as immoral, in the late 1960s and early 1970s in the community of economists, proposals for emission quotas began to appear more and more often.Canadian economist John Dales and his American colleague David Montgomery compared the emissions market with trading in securities, currencies, energy or real estate, noting the potential efficiency and low costs of such a mechanism.Since the mid-1970s in the United States, as a part of a pilot project in a number of states, near-market mechanisms have begun to be applied to combat greenhouse gas emissions (such as the introduction of a limit on emissions per hour for industrial equipment).In 1990, emission quotas were legalized with the adoption of amendments to the Clean Air Act.Despite initial skepticism about the decision, cap-and-trade eventually became widespread among utilities and showed impressive results: by 2008, emissions were reduced by almost 60 % compared to 1980 levels.The reduction in emissions contributed to a decrease in the number of pulmonary diseases among US residents and, consequently, reduced health care costs.More recently, researchers from the Massachusetts Institute of Technology noted the exceptional effectiveness of the emission quota program, emphasizing that no other US government program in the field of environmental protection has brought more results than the creation of an emissions market.Later, during the Kyoto climate conference in 1997, the US delegation insisted on a global practice of emission quotas, but Europeans thought such a proposal unreliable and immoral.European politicians were supporters of the administrative regulation of greenhouse gas emissions (through the introduction of technological standards for business, the establishment of efficiency standards in production), however, through the efforts of the American side, provisions on trading in emission permits were included in the Kyoto Protocol [7].Due to the introduction of the emissions trading system, the European Union managed to reduce the level of hydrocarbon emissions by 23 % in 2018 compared to 1990 [8] In the Russian Federation from September 1, 2022 an experiment is underway in the Sakhalin Oblast to limit greenhouse gas emissions, which is expected to be completed on December 31, 2028.The goal of the experiment is to achieve carbon neutrality of Sakhalin by 2025 through the introduction of quotas for hydrocarbon emissions and the introduction of broader reporting on carbon emissions compared to federal level [9].For exceeding quotas, a fee of 1000 rubles is provided for every ton of CO2 [10].
In case of late or incomplete payment of fees, organizations are charged penalties in the amount of 1/300 of the Central Bank rate established at the time of payment of penalties, but not more than 0.2 % for each day of delay [11].As the experiment continues, it is planned to include other subjects of the Russian Federation in it.At present, the issue of conducting an experiment on the territory of the Kaliningrad and Irkutsk regions, Bashkiria and the Khabarovsk Territory is being considered.
From 1990 to 2017, France's GDP growth was 1.5 % per year with a 13 % reduction in emissions, Sweden showed an annual GDP growth of 2.2 %, reducing emissions by 26 % [12].
In September 2021, the Vedomosti publication, citing federal officials, announced the plans of the Government of the Russian Federation to develop a national version of the EU cross-border carbon tax, the design of which, according to preliminary estimates, will take 1-1.5 years [13].
It is assumed that the developed tax policy in the field of decarbonization, if recognized at the international level, will make it possible to offset payments for greenhouse gas emissions in Russia by the carbon control system operating in the territory of the European Union.
Analysts called Russia the main victim of the forthcoming EU carbon tax [14].At the same time, the association of the largest Russian metallurgical companies Russian Steel, which unites Alexei Mordashov's Severstal, Roman Abramovich's Evraz and Vladimir Lisin's NLMK, published a message in which the expediency of the introduction of a cross-border EU carbon tax was questioned.The statement emphasized that the application of the mechanisms proposed by the European Commission "could have a significant negative impact on the development of the industry."Further, the metallurgists turned to the Russian Government with a request to protect Russian business in the context of the hydrocarbon emission control policy being developed in the European Union [15].
The opinion of business, the assessments of analysts and the plans of the Government of the Russian Federation to develop a national version of the emission tax correlate with the provisions of the "Guidelines for the Budget, Tax and Customs Tariff Policy for 2022 and for the planning period of 2023 and 2024", approved by the Ministry of Finance of the Russian Federation.In terms of terms of trade, the Ministry emphasizes that carbon taxation, along with emission quotas, will be an important effect of the cross-border carbon transition mechanism, which will help reduce demand for hydrocarbonswhen carbon neutrality is achieved by 2050, a drop of 4-6 times is expected [16].
Prime Minister M. V. Mishustin stated that it is impossible to postpone the process of decarbonization and the introduction of a carbon tax, "our competitive capabilities depend on this" [17].
Taking into account the US experience in the reduction of greenhouse gas emissions through the introduction of economic and legal mechanisms, and its impact on the health of the American population, we also note the impact of the carbon tax on society, namely, on the health of citizens.The introduction of a carbon tax primarily involves the reduction of hydrocarbon emissions, which subsequently improves air quality.Such dynamics in the long term will reduce the number of lung diseases among the Russian population and, as a result, reduce healthcare costs and the burden on medical personnel.A similar point of view was expressed by the President and Chairman of the Management Board of Sberbank German Gref during the International Financial Congress 2021.The former Minister of Economic Development said that if the Russian Federation continues to follow the current development trajectory in terms of carbon regulation, then "the country is threatened with the conservation of technological backwardness and loss of competitiveness."Gref suggested accumulating funds for decarbonization by creating an internal market for carbon units and taking measures for ESG financing [18].

Conclusion
As a result of the research, we can be concluded that the introduction of a carbon tax seems to be a solution that requires a comprehensive analysis of not only the predicted positive external effects, but also the costs associated with the establishment of taxation of emissions.
Summing up some results of our paper, we offer several scenarios for the implementation of the mechanisms discussed in the study in relation to the Russian Federation.
1. Inclusion in the Sakhalin experiment of other regions and conducting an experiment in these constituent entities of the Russian Federation on the application of carbon taxation in relation to industries producing the largest greenhouse gas emissions, followed by the introduction of a mechanism that stimulates the greatest reduction in emissions; 2. In order to avoid paying a cross-border EU carbon tax, the introduction of an internal carbon tax for industries identified in the Green Deal strategy (producers of aluminium, steel, cement, fertilizers and electricity), and the subsequent expansion of the list of taxpayers as other industries are included in the EU list; 3. Signing carbon tax netting agreements with countries that have a carbon tax, as well as the introduction of quotas for greenhouse gas emissions for industries that will not be subject to the obligation to pay carbon tax.
Each proposal involves the development and implementation of a carbon adjustment mechanism, including a full range of emissions accounting.The obligation to maintain an inventory of hydrocarbon emissions in accordance with the Federal Law of 04.05.1999No. 96-FZ "On the Protection of Atmospheric Air" must be assigned to the emitters of such emissions, with subsequent verification of these data by Russian Federal Service for Ecological, Technological and Nuclear Supervision.