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

Author

Listed:
  • Nadezhda Ivanova

    (Bank of Russia; RANEPA)

  • Henry Penikas

    (Bank of Russia; Lebedev Physical Institute)

  • Svetlana Popova

    (Bank of Russia; HSE University)

  • Andrey Sinyakov

    (Bank of Russia)

  • Natalia Turdyeva

    (Bank of Russia; RFTA)

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.

Suggested Citation

  • Nadezhda Ivanova & Henry Penikas & Svetlana Popova & Andrey Sinyakov & Natalia Turdyeva, 2022. "Review of the Bank of Russia - NES Workshop 'Transition to a Low-Carbon Economy: Costs and Risks for the Financial Sector'," Russian Journal of Money and Finance, Bank of Russia, vol. 81(3), pages 89-106, September.
    • Handle: RePEc:bkr:journl:v:81:y:2022:i:3:p:89-106
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    References listed on IDEAS

    as
    1. Yulia Vymyatnina & Aleksandr Chernykh, 2022. "Green Factor Influence on the Yield of Stocks and Bonds in the Russian Financial Market," EUSP Department of Economics Working Paper Series 2022/01, European University at St. Petersburg, Department of Economics.
    2. Mathias Drehmann & Mikael Juselius, 2012. "Do debt service costs affect macroeconomic and financial stability?," BIS Quarterly Review, Bank for International Settlements, September.
    3. Olga V. Bogacheva & Oleg V. Smorodinov, 2016. "Green Bonds as a Key Instrument for Financing Green Projects," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 2, pages 70-81, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    climate change; low-carbon economy; energy transition; structural shifts; green finance; credit risk; central bank policy;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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