Environmental protectionism as a factor in the transformation of the industrial and foreign trade structure on the example of Russia and Germany

Kutyrev G.I., Kolomina (Apasova) A.M., Lebedev M.A


The paper examines the phenomenon of tightening international environmental standards and transitioning the rule-making initiative to regional actors, particularly to the European Union. Among the assessed factors is the potential impact of the EU Carbon Border Tax on international trade and the supranational protectionist barrier in environmental regulation on transforming national industrial structures. The research is based on the example of the influence of the EU Carbon Border Tax on the economy of Russia, as one of the EU’s key partners in the supply of raw materials and metals. The impact of tax regulation is also studied in the case of Germany as one of the most carbonefficient countries in the European Union. We provide the analysis of the influence of such restrictions on the national economy and large national corporations, depending on the nature of trade and the state of environmental regulation and the form of restrictions imposed. Potential threats and prospects for introducing the EU Carbon Border Tax for Russia, the industry of which is characterized by high carbon intensity, are investigated, among which the loss of both European trading partners and Asian markets is noted. The paper analyzes standard measures to counter environmental protectionism at the level of companies and the state as a whole. It proposes measures to improve Russian exporters' energy efficiency and competitiveness, taking into account the current context of decarbonization in Russia. The consequences of introducing the EU Carbon Border Tax are also analyzed in the context of European states and their national corporations, on the example of Germany. The article considers national energy programs serving as a basis for further regulation of the environmental sphere, including the mechanism of carbon protectionism. An assumption is put forward about the possible negative consequences of the introduction of the EU Carbon Border Tax not only for the exporting countries but also for many member states of the Union due to the high degree of dependence of their energy systems on fossil fuel sources and the lack of their production capacities.


EU Carbon Border Tax; Russia; Germany; environmental protectionism; environmental agenda; trade barriers; world trade.

DOI: 10.31249/rsm/2021.04.06

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