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Memoranda Signing of Mutual Understanding with the Perm Krai and theTyumen Region.

Reducing industrial carbon emissions is a priority for the global
community. The increase in average temperature caused by greenhouse
gases has already led to a significant increase in the number of hurricanes,
floods, droughts, fires, and other natural disasters. Damage from the
elements in 2020 alone is estimated at $150 billion. But the money goes into
the background, because, according to scientists, a further increase in
average temperature could create unfavorable living conditions for more
than 3 billion people already by 2050.

According to Dominic Vogrey, the manager of the World Economic
Forum, "companies have an opportunity to make a huge impact on the fight
against climate change, especially through decarbonizing the supply chain.
Many large global and Russian players have realized the true scale of the
disaster and have already started the process of decarbonizing their
production complexes.

Specific economic instruments, such as increased cross-border fees,
taxes, and duties, are also aimed at stimulating the decarbonization process.
To maintain its market share, Russia also needs to restructure its industrial
sector in accordance with current global demands.

According to the Russian President Vladimir Putin, "Compliance with
environmental standards is becoming an important factor in the
competitiveness of products. All over the world, serious attention is paid to
the reduction of greenhouse gas emissions, and requirements for waste
reduction are becoming stricter.

The Russian Federation has a natural tool to combat greenhouse gases
- a forest that absorbs harmful emissions. Reorganization of administrative
processes in forest management will help to get the most out of such a tool:
changing the terms of beneficial use and planting new forest areas can make
a significant contribution to the decarbonization process. Another way to
combat CO₂ is to reduce emissions, which requires reorganization of
production facilities. GreenEco Investments’ activities focus precisely on
these two areas.

The memorandum signing with the governors of the Perm Krai and the
Tyumen Region will strengthen cooperation between the government
representatives and business focusing at the decarbonization of the
industrial sector and the development of forestry in these regions.

The implementation of environmental programs is on the country’s
leadership’s priority list. The governor of Perm Krai Dmitry Makhonin leads
the Environmental Council and supports non-profit organizations engaged in
ecological education of the population. The governor personally supervises
several environmental projects, including the ecological rehabilitation project
the "Clean Kama", which affects not only the Perm region, but other regions
of Russia as well. According to Mr. Makhonin, reducing CO₂ emissions should
be a priority in the development of environmental programs in the region:
"The processes currently underway, in terms of cross-border taxes and green
certificates issuing, are processes that are unlikely to be stopped in any
way". The governor noted that the coverage of a large part of Russia with
forest is a competitive advantage, which must be used.

The decarbonization program was also supported by the governor of
the Tyumen Region, Alexander Moor, for whom the environmental programs
are particularly important: Tyumen Region is constantly monitoring the
environmental situation, implementing programs aimed at improving the
quality of life and educating people. Mr. Moor stated that: “72% of the
Tyumen region is forestry land.” “It is quite possible that from a region that
exports hydrocarbons, we can become a region that exports carbon credits.”
“We have totally new opportunities: instead of cutting down the forest, in
fact, we can improve it by planting new trees.”

According to the head of GreenEco Investments: “decarbonization is
more relevant than ever. It is reflected in the SPIEF agenda, this topic is
discussed a lot. Currently, there is a lot of uncertainty in terms of regulation
both in the Russian Federation and in general. It is crucial to start taking
practical steps in this matter. The EU's statement on the introduction of a
cross-border carbon tax is a threat to Russian industry and exporters.
Especially for representatives of the oil and gas sector, half of whose
expected exports - which is from $3 to $6 billion annually - comes from oil
and gas”.

The memorandum will become a tangible step in the development of
decarbonization programs in the Perm Krai and the Tyumen Region,
complementing the existing environmental programs and increasing the
economic potential and tourist attractiveness of the regions. Preserving the
natural balance without destroying the economic model, correcting the
course of development in time, and making the transition to green energy as
soft and evolutionary as possible meaning: ensuring a healthy future for the
new generations. These are the main challenges facing the country and the
world today. The signing of the memorandum contributes to the
transformation of Russia's industrial sector and forestry in accordance with
the challenges of our time.


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