Review of the Bank of Russia - NES Workshop 'Transition to a Low-Carbon Economy: Costs and Risks for the Financial Sector'

Nadezhda Ivanova, Henry Penikas, Svetlana Popova (popovasv@mail.cbr.ru), Andrey Sinyakov and Natalia Turdyeva

Russian Journal of Money and Finance, 2022, vol. 81, issue 3, 89-106

Abstract: In early July 2022, the Bank of Russia and the New Economic School held a joint workshop titled 'Transition to a Low-Carbon Economy: Costs and Risks for the Financial Sector'. The presentations delivered at the workshop enable a number of general conclusions to be drawn. First, as follows from the results of the calculations in general equilibrium models, the Russian economy will struggle to avoid losses in welfare in the face of the global (or expedited) energy transition. These losses will be especially heavy if domestic climate policy fails to drive economic diversification and technological advancement, which, in the 'new reality', would come with more costs. Second, if climate risks materialise, their implications for corporate sector debt can be measured as moderate. Third, financial market participants - banks and investors - have so far treated green and brown projects or companies in essentially the same way in terms of conditions for financing.

Keywords: climate change; low-carbon economy; energy transition; structural shifts; green finance; credit risk; central bank policy (search for similar items in EconPapers)
JEL-codes: E58 G11 Q43 Q48 Q58 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:bkr:journl:v:81:y:2022:i:3:p:89-106

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