MOSCOW, Nov 25 Reuters - Russia's plan to reduce its carbon footprint by 2050 will require investments of between 1 trillion roubles and 4 trillion roubles a year from $13.4 billion to $53.6 billion, the central bank said on Thursday.
Some of the infrastructure is built on permafrost https: graphics.reuters. CLIMATE-CHANGE PERMAFROST oakveelglvr, which is vulnerable to rising temperatures, is vulnerable to rising temperatures https: www.reuters. Russia, the world's fourth largest emitter of greenhouse gases, will use from 1% to 2% of its gross domestic product to reduce net emissions of greenhouse gases by 2050 in the main scenario approved by the government.
The central bank said in a report on financial stability that such investment will require active financing from Russian banks and the financial sector as a whole.
The Russian banking sector has sufficient capital, but green projects could face difficulties securing loans due to high risks, such as insufficient transparency, according to the central bank.
The economy ministry has warned that Russia will not become a zero-emissions economy by 2050, and it runs the risk of losing macroeconomic stability and sustainable growth.
Russian companies with businesses that negatively impact the environment have started implementing principles of sustainable development, but integration in the global climate agenda remains low, according to the central bank.
This situation has to be changed, otherwise the Russian financial sector could face high risks in the medium term.