Russia’s plan to reduce its carbon footprint by 2050 will require investments of 1-4 trillion. Rubles per year ($ 13.4-53.6 billion), the central bank announced.
Climate change is a serious challenge for Russia, whose economy relies heavily on oil and gas production as well as mining.
Some of these infrastructures are built in ice (permafrost), which is vulnerable to rising temperatures.
Russia, the fourth-largest country in the world, will use 1% -2% of its GDP to reduce its emissions by 2050, according to the baseline scenario approved by the government.
“Such an investment will require active financing from Russian banks and the financial sector as a whole,” the central bank said.
Although the Russian banking sector has sufficient capital, the “green” projects could face difficulties in securing loans due to high risks such as insufficient opacity, the bank said in a report.
The Ministry of Economy has warned Russia that it will not become a zero-emission economy by 2050 and if it aims to achieve this goal, it risks losing macroeconomic stability and sustainable growth.
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Source From: Capital
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