Current State and Prospects for Developing Carbon Integration in the Eurasian Space

Abstract

The processes of decarbonisation of the world economy, expressed among other things in the increasing use by states of carbon pricing mechanisms and the strengthening of the role of green protectionism in international trade, create certain challenges for the competitiveness of the economies of the Eurasian Economic Union (EAEU) countries, setting them the task of harmonizing national approaches within the framework of the climate agenda and subsequent carbon integration. This article, based on a comprehensive analysis of the economic and legal aspects of national and supranational climate regulation, examines factors that can contribute to the development of such integration in the Eurasian space, and identifies existing and potential challenges that could have an impact on it. We propose a definition of carbon integration as one of the areas of climate integration, analyzed the current conditions for its development, and identified potential measures for its further improvement and regulation in the EAEU. The authors come to the conclusion that, despite such factors as the initial stage of climate integration in the Eurasian space, the existing differences in the climate regulation regimes of the countries of the association (manifested among other things in the heterogeneity of the development of institutional and legal frameworks for the application of carbon pricing mechanisms), the scale of the consequences of introducing the European CBAM (Carbon Border Adjustment Mechanism) for the national economies of the countries under consideration, opportunities and conditions for investing in green projects and greening of production, carbon integration remains one of the necessary conditions for the successful development of trade and economic relations of the EAEU member states at both regional and global levels.