International Standards for Sustainable Trade: ICC Russia Experts Call for Inclusion of Water Issues
During the meeting, it was noted that the Ministry of Natural Resources is currently developing a national Water Strategy, which is expected to incorporate economic instruments. Additionally, the above-mentioned ICC Russia Commission plans to present recommendations this year on the inclusion of water-related issues in international standards for sustainable trade.
Several presentations highlighted the strong interconnection between water challenges and climate change. A representative of the A.M. Obukhov Institute of Atmospheric Physics (Russian Academy of Sciences) demonstrated how thermokarst lakes, which form as a result of permafrost thawing, contribute to increased methane emissions. Over time, some of these lakes transform into peatlands that can partially absorb carbon dioxide.
In terms of regulatory aspects, a representative from the company Kept outlined several key points:
- Due to the anticipated shortage of clean water, the management of water resources is a crucial aspect of climate change adaptation;
- Droughts act as a barrier to the development of hydropower capacity, and therefore to decarbonisation; as such, national decarbonisation policies must consider water availability;
- A significant increase in water use is expected for the extraction of rare earth metals and hydrogen production — both essential for decarbonisation — often in water-scarce regions of the world.
The event also presented the results of a socio-economic impact assessment of new hydropower projects, conducted using a methodology developed by the Russian Hydropower Association in partnership with the Higher School of Economics and the Centre for Strategic Research. Testing this approach in nine Russian regions showed a number of positive effects from hydropower construction, including a reduction in greenhouse gas emissions in the region and improved flood control. At the same time, it is important to recognise that hydropower reservoirs can both contribute to greenhouse gas emissions and absorb carbon dioxide from the atmosphere.
One of the key themes of the conference was the "water footprint" — an environmental indicator that reflects the total volume of freshwater used throughout the production and consumption stages of a product or service. The water footprint is an important tool for assessing a company’s environmental sustainability. At the international level and in Russia, ISO standards (GOST ISO) have been adopted to help companies build effective water use systems (ISO 46001) and assess their water footprint based on life-cycle principles (ISO 14046). According to a representative of TUV Austria, no company in Russia has yet undergone international certification for water footprint assessment, but this is expected to change in the future.