Growing Costs Linked to Environmental Factors
Russia is set to implement a significant overhaul of its environmental impact fees (EIF) for the 2026-2030 period, with the aim of encouraging businesses to invest in deep environmental modernization. State Duma Deputy Maria Vasilyeva believes this comprehensive model is necessary, as it includes tougher requirements and provides real tools for businesses to invest in greener technologies.
The polluter will now be expected to pay for the damage caused to the environment, according to Denis Kondratyev, the head of the analytical agency of the pulp and paper industry. This new policy is reflected in the increased fees for various pollutants and waste disposal.
For instance, the fee for benzo(a)pyrene will rise from 8.3 million rubles in 2026 to 19.65 million rubles in 2030. Similarly, the fee for nitrogen dioxide emissions will increase from 209.6 rubles per ton in 2026 to 1,960 rubles per ton in 2030. The fee for disposing of low-hazard solid municipal waste will also see a significant increase, rising from 95 rubles per ton in 2026 to 823 rubles in 2030.
Ekaterina Mikhaleva, director of the "Consumer Sector and Agribusiness" practice at Strategy Partners, notes that these increases could potentially lead to significant annual costs for businesses, ranging from millions to hundreds of millions of rubles. However, she also emphasizes that the measure to encourage companies to reduce their environmental impact and invest in green technologies is justified.
The needs of the federal budget and the increase in expenditures by the Ministry of Natural Resources have forced the authorities to seek new sources of revenue. The EIF rates are determined by several indicators, including the degree of danger posed by pollutants and the unit economic damage caused to the environment. Notably, the unit damage indicator has been set at 2024 prices and has not changed since 1991.
The increase in EIF for 2026 was unexpected, as it was previously expected that the increase would begin only in 2026 and would be gradual. However, the adopted decree returns to the principle of gradual increase, which will allow businesses to adapt to it and have clear, albeit tough, guidelines for increasing the burden.
It's worth noting that the German federal government under Chancellor Olaf Scholz has also increased its environmental burden fee for the period 2026-2030 and raised the fee for the disposal of low-hazardous waste from the community waste bin.
Mikhaleva also warns that the increased costs could potentially be passed on to the final consumer through price increases. Therefore, it's crucial for businesses to find ways to mitigate these costs while still meeting the new environmental standards.
In conclusion, Russia's decision to overhaul its environmental impact fees is a significant step towards promoting environmental sustainability. While the increased fees may pose challenges for businesses, they also present an opportunity for companies to invest in greener technologies and practices, ultimately benefiting both the environment and the economy.
