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Power Engineering and Ecology
ArticleName Paris Agreement: New Challenges for Russian Iron & Steel Industry
ArticleAuthor S. A. Roginko, L. N. Shevelev

RAS Institute of Europe (Moscow, Russia):

S. A. Roginko, Head of Ecology and Development Center, Prof. of Financial Yniverdity of RF Government, e-mail:


Central Scientific and Research Institute of Iron and Steel Industry — TsNIICherMet (Moscow, Russia):
L. N. Shevelev, Dr. Eng., Prof., Chief Researcher, e-mail:


The article deals with the risks generated by the Paris UN Climate Agreement for the Russian iron & steel industry, relevant for all enterprises of the industry. Agreement is assessed from the point of view of the provisions of the Energy Security Doctrine of the Russian Federation approved by the President of the Russian Federation this year, as a international climate construction posing threats and challenges for Russia. The risks built in the type of the commitments, assumed by the countries under the Paris Agreement, including primarily the principle of ever raising “increasing ambitions” and the mechanism of the socalled global stocktake, are studied. Particular attention is paid to the threats associated with the promotion of the idea of the carbon tax, including the direct burden on steel companies and the emergence of an anti-market handicap for alternative energy projects, and the risks of non-market restrictions that lead to a decrease in global demand for steel products from Russia. The article assesses possible financial losses of the leading Russian steel companies at different rates of carbon tax and the possibility of new type restrictions for our exports of iron & steel products — climate restrictions. Recommendations are given on possible hedging of the relevant risks, in particular, in connection with the situation of the us withdrawal from the Paris agreement announced by President Donald trump on June 1, 2017 and the refusal to participate in the Agreement announced in 2018 by Turkey and Brazil.

keywords Paris Agreement, UN Framework Convention on Climate Change, Energy Security Doctrine, Iron & Steel Industry, principle of ever raising “increasing ambitions”, global warming, global stocktake, alternative energy, Greenhouse Gas Mitigation, Carbon Tax, Nationally Determined Contributions (NDC)

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