Russian Energy efficiency: Medvedev's new favourite topic?

Medvedev Energy Plans

Soon after coming to power in 2000, Vladimir Putin shut down the State Committee for the Protection of the Environment. At the height of Russia's production from its natural gas fields, coughing out huge plumes of carbon dioxide-filled clouds, Putin sent out a clear message to the rest of the world that he did share their sentiments on the fight against climate change - clearly putting Russia's economic development before the conservation of the environment.

However, new Kremlin boss Dmitry Medvedev has appeared to differ from his predecessor. Medvedev recognises that in order for Russia's growth and development to remain sustainable, its economy must be modernised. But, whereas his vision for a modern, greener Russia may resonate with fellow world leaders and environmentalists, it has massive implications for the nation's oil and gas industry. Energy efficiency is now firmly on the Russian President's agenda.

Medvedev hopes the talent of researchers and scientists at the Kurchatov Institute, where, in 1949, researchers developed the nuclear weapons that launched the USSR to superpower status, can help drive down Russia's ferocious thirst for energy through the development of innovative and pioneering technology.

Up to now, Russia has consumed gigantic quantities of energy as a result of antiquated and inefficient production plants and subsidized energy prices. A glut in supply means that the skies in many parts of Russia are alight with the flames of excess gas simply being burned off.

Business Week reports how Medvedev described the current situation in Russia as "depressing", as factories use up four or five times more energy than their Western counterparts. In addition, district heating systems are profoundly wasteful, with much of the heat being lost before it even reaches consumers. In mid-September, Medvedev wrote a much-read article in which he stated that "the energy efficiency of the majority of our companies is shamefully low."

In response, Medvedev has announced some very ambitious plans: he wants to cut Russian energy consumption by 40 percent by 2020. But people are taking him very seriously, the speech in which he announced these plans was attended by the likes of Finance Minister Alexei Kudrin, Economic Development Minister Elvira Nabiullina - all of which seemed to respond positively to his outlined goals, according to Business Week.

He message was clear and concise: "Those who save energy, save money."

But, critics find it hard grasp just how Medvedev plans on funding such institutional changes. Which business incentives will be used? How does one encourage large companies to save energy? These questions remain completely unanswered," said Stefan Meister, an expert on Russia at the German Council on Foreign Relations (DGAP).

But there are plans to collaborate with other nations in order to bring in the necessary funds, technology and know-how into the country. Russia is now looking towards Germany for assistance in meeting its efficiency goals. In July, Medvedev and German Chancellor Angela Merkel established the "Russian-German Energy Agency" in Munich.

China and Russia may also be set to sign another major energy deal, which includes a possible gas-for-loans deal similar to a $25 billion oil-for-loans deal that was finalized earlier this year, Chinese media reports and analysts said.

Medvedev is serious. The need for a modernised, greener economy cannot be ignored as Russia begin to realise the need to diversify away from oil and gas as its dominant sources of power. The fact that both China and Russia are willing to put aside previous trust issues to push ahead on mutual economic interests suggests that, in regards to the global fight against climate change, we may now have two of the most important players on board.

Like this article? Get the RSS feed: