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The pair will also seek to create a Russian benchmark for low-carbon hydrogen products.

By joseph Murphy

Russian oil company Rosneft has teamed up with the St Petersburg International Mercantile Exchange (SPIMEX) to develop carbon trading, the partners said on January 18.

"The agreement provides for cooperation between the parties in the area of carbon management and development of exchange trade in carbon units resulting from the implementation by Rosneft of projects to reduce greenhouse gas emissions," Rosneft said in a statement.

Rosneft and SPIMEX intend to hold test auctions for Rosneft's carbon units, and introduce tools for the exchange trading of low-carbon oil and petroleum products. They will also look at establishing a Russian benchmark for low-carbon hydrocarbon products, including oil, petroleum products, natural gas and LNG.

Rosneft said the agreement would help it deliver on its net zero by 2050 goal.