The Issues of Carbon Pricing in the Russian Federation: The Local and International Perspectives Under the Cost Approach and the Role of Afforestation Projects

Andrey Artemenkov (), Olga E. Medvedeva, Alexander N. Pavlov and Omonjon Ganiev
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Andrey Artemenkov: Finance Department, Westminster International University in Tashkent (WIUT), Tashkent 100047, Uzbekistan
Olga E. Medvedeva: Department of Economic Measurements and Economic Policy, The State University of Management (GYY), Moscow 109542, Russia
Alexander N. Pavlov: The International Research for Advanced Systems (IRIAS), Moscow 117312, Russia
Omonjon Ganiev: Finance Department, Westminster International University in Tashkent (WIUT), Tashkent 100047, Uzbekistan

Sustainability, 2025, vol. 17, issue 3, 1-16

Abstract: This paper discusses the role of afforestation projects and other climate technologies in the green agenda for Russia and aims to justify the anchoring of jurisdictional carbon pricing in the cost approach to valuation, specifically, with reference to the cost economics for afforestation projects given their centrality to the agenda. Through that, and due to the inchoate state of carbon pricing in the study jurisdiction, this paper aims to advance price discovery for national carbon credits in both compliance and voluntary schemes. The cost approach framework, moderated by international market comparisons, indicates the fair price of carbon in Russian jurisdiction at the level of USD 20–25 per tonne of CO 2 -eq, which is close to the global median but is more than double the amount of carbon levies set under the Sakhalin GHG quota experiment. It is argued that unless such a fair price for carbon is set in the country, the national carbon credits market will not achieve viable growth, nor will sustainable development be advanced, and funds for it be adequately collected. This represents a relevant contribution to the literature on the development of the national carbon credit markets.

Keywords: afforestation projects; climate projects; carbon pricing; cost approach to valuation; carbon credits; Sakhalin carbon quota experiment; sustainable development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:3:p:1088-:d:1579436

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