THE EUROPEAN GREEN DEAL AND RUSSIA OPPORTUNITIES FOR A NEW BEGINNING THROUGH JOINT CLIMATE AND ENERGY POLICY The European Green Deal and Russia 3 Contents Foreword: Dr. Wolfgang Schüssel . 4 Executive Summary . 5 1. The EU and Russia – Containment and cooperation . .8 2. European Green Deal and Russian Climate Policy – Opportunities for all. 10 3 Renewable energies – Enormous potential in Russia . .16 4. Energy efficiency – Catch-up potential in Russia . 25 5. Hydrogen – Only with Russia can the EU meet its needs . .29 6. Natural gas – crucial as a "transition fuel" . .37 7. Nuclear power – Joint research on nuclear waste management. 46 8. Raw materials – Diversification partnership . .54 9. Nine proposals to European politics . 59 Afterword: Prof. Dr. Friedbert Pflüger . 62 Abbreviations . .63 Index of figures . .64 Selected bibliography . 65 Legal and editorial details . 68 4 The European Green Deal and Russia Foreword In 1968, in the middle of the Cold War, Austria tise and, on the other hand, would be an ideal became the first Western country to sign a long-term partner with its vast potential of wind, solar and supply contract for Russian gas. Only a few believed biomass energy, some of which has yet to be tapped. at the time that this would turn into a productive Both Russia and the Union are aiming to be at the supply relationship which would last for more than forefront of hydrogen production. They could achieve half a century. It took three years for Germany and this by joining forces. Both a looming energy supply Italy to follow suit with similar collaborations. Today, gap in Europe and Russia falling behind could be just like back then, Europe and Russia still see a averted as a result. Incidentally, this is precisely geopolitical situation with growing tensions and where the much-criticized Nord Stream 2 pipeline confrontations, but at the same time also major can make a decisive contribution and also deliver global challenges that can only be overcome with large quantities of urgently needed hydrogen to the intensive cooperation. Such problems include the EU in the future. Compensation measures, such as climate issue and the transformation of our economy afforestation, carbon capture, utilization and storage and society. The Paris Agreement commits Russia, as (CCU & CCS), broadening supply chains and depend- well as EU members, to limit global warming below 2 encies on rare earths and raw materials all represent degrees Celsius. To this end, the European Commis- additional cooperation themes in such a "Wider sion has formulated the goal of creating the first European Green Deal". climate-neutral continent by 2050 with the European Green Deal. Last year, President Putin instructed the At this point, we would like to thank and acknowl- government to reduce greenhouse gas emissions to edge the authors of the study commissioned by the 70% (from 1990 levels) in ten years. These are highly Dialog-Europa-Russland and the United-Europe e.V. ambitious goals, but they also require sustainable We can only hope that the highly interesting political decisions. Europe and Russia could and proposals will be acknowledged and lead to concrete should join forces in a substantial partnership. The cooperations. Hugo Portisch, leading Austrian jour- Union is systematically advancing the development of nalist and writer, stated in his book “Russland und renewable energy sources, increasing energy effi- wir" published shortly before his death in April 2021, ciency, e-mobility as well as CO2 pricing. On the one that "Europe and Russia depend on each other and hand, Russia could benefit from the acquired exper- increasingly will." I fully agree with this. Dr. Wolfgang Schüssel Federal Chancellor of Austria 2000-2007 The European Green Deal and Russia 5 Executive Summary With the European Green Deal, the EU is pursuing Once before, half a century ago, it was energy the overarching goal of transforming Europe into the policy that paved the way for relieving tensions first climate-neutral continent by 2050. The far- during the Cold War. The natural gas pipeline reaching measures planned include increasing the deal, which the Brandt government brokered share of energy from renewable sources, developing together with German industry, paved the way for a European market for zero-emission hydrogen and peaceful coexistence and peacekeeping. Once boosting energy efficiency at all levels. The starting again, energy and above all climate policy could point for this huge effort is the Paris Agreement, with now pave the way for a new start in relations. its goal of limiting global warming to well below 2 degrees Celsius compared to pre-industrial levels. For these reasons, the EU should make Russia an offer within the framework of the European Green In line with the EU Member States, Russia has signed Deal to advance the transformation and decarboniza- the Paris Climate Agreement and is committed to tion of its own economy in the spirit of a low-emission reducing greenhouse gases: On November 4, 2020, climate, energy and resource partnership with the EU Russian President Putin issued a presidential decree and its Member States. The following areas are ideal instructing the government to reduce greenhouse gas for this purpose: emissions to 70% by 2030 compared to 1990 levels. This ambitious target is reasonable, but must be Renewable energies supported by appropriate measures to achieve it. The ambitious emission reduction targets of the European Green Deal will drastically increase the There are three reasons why Russia should be European demand for electricity generated from included in the European Green Deal: renewable sources. Within the EU alone, it will be virtually impossible to accelerate the expansion of Like most of the EU's neighbors and most coun- renewable electricity production due to technical and tries on Earth, Russia is far from meeting Europe's political challenges. level of climate policy ambitions. Close climate policy cooperation with the EU will make it easier This is one of the reasons why the European frame- for Russia to implement the Paris climate targets work for renewable energies explicitly supports at home. This would be a decisive cooperation with third countries in this step for the global climate policy. area. Due to its natural geographic Energy and climate conditions and huge surface area, Russia already accounts for a signifi- policy can play a Russia has enormous untapped poten- cant share of European energy decisive role in resuming tial for wind and solar energy as well as imports, but also holds enormous dialogue with Russia biomass, which makes it an ideal potential for the production and partner. export of emission-free gases and renewable energies. It can in turn also make it Individual obstacles that still exist in the context of much easier for the EU to meet its ambitious cooperation can be bridged by joint European-Russian climate targets. projects, for example, to improve the interconnecti- vity of electrical transmission grids or increase the efficiency of plants. 6 The European Green Deal and Russia Russia's huge potential for CO2 capture through Based on these technologies in particular, Russia has afforestation also represents a significant resource. reasonable ambitions with its companies and, in part- As such, it can make a decisive contribution to the EU nership, could help fill the huge projected European achieving net zero emissions by 2050 as part of Euro- supply gap with exports as well as localized produc- pean-Russian cooperation through tion in Europe. Conversely, Russia could integration into the EU's emissions benefit from European know-how, trading system. It is unambiguous that Russia has the world's especially in electrolysis technologies. it should be tapped for mutual benefit. largest wind potential, but due to technological Natural gas Close European-Russian cooperation on reasons, only a very In the short and medium term, natural renewable energy would not only small part of it is gas imports, especially from Russia, will advance European climate policy and commercially viable make up a key component of the Euro- energy security, but also contribute to pean energy transition due to signifi- the diversification of Russia's energy cantly declining domestic gas industry, boost the country's renewable energy production and the shift away from coal as an energy sector, and cement mutually beneficial interdepend- source. The continuation of the energy partnership encies even in times of declining European demand with Russia is also crucial in view of the European for fossil fuels. Green Deal and the resulting demand for hydrogen and emission-free gases. Energy efficiency Energy efficiency as a cross-sectional Opportunities for cooperation are task plays a major role both in the EU's Through afforestation emerging above all in the area of infra- energy policy within the framework of alone, Russia could structure through the completion of the European Green Deal and in Russia. sequester 8% of Europe's the Nord Stream 2 gas pipeline, which There is potential for cooperation annual greenhouse gas could also deliver large quantities of through joint energy-saving projects in emissions hydrogen to Europe in the future. There all sectors of the economy. They should is potential for technical cooperation in be supported and guided through the reduction of environmentally dialogue and cooperation at working level. harmful methane emissions and in the area of CCU & CCS technologies for natural gas as well as blue Hydrogen hydrogen for which there are already specific points Both Russia and the EU are aiming to establish them- of contact in the form of pilot projects and efforts by selves as pioneers in hydrogen technologies. In line the private sector for mutual cooperation. with the European Green Deal, the European hydrogen strategy envisages Nuclear power the rapid expansion of production The EU hydrogen sector The future role of nuclear power in the based on renewable energies.