Russia's plan to reduce its carbon footprint will require billions of euros

Russia's plan to reduce its carbon footprint by 2050 will require investments of 1 trillion to 4 trillion rubles a year (11.93 to 47.73 billion euros). Russia's central bank said this on Thursday. Climate change poses a serious challenge to Russia, whose economy relies heavily on oil and gas as well as other minerals. Part of this infrastructure is built on permafrost, which is sensitive to rising temperatures. Russia, the world's fourth-largest greenhouse gas producer, will use 1 to 2 percent of its gross domestic product (GDP) to reduce net greenhouse gas emissions by 2050 under a government-approved key scenario. "Such investments will require active financing by Russian banks and the financial sector as a whole," the central bank said in a financial stability report. Despite the fact that the Russian banking sector has sufficient capital, "green" projects could face difficulties in securing loans due to high risks, such as lack of transparency, the central bank said. The Ministry of Economy has warned that Russia will not become a zero-emission economy by 2050. If it pursues this goal, it runs the risk of losing macroeconomic stability and sustainable growth. Russian companies, whose plants have a negative impact on the environment, have already begun to implement the principles of sustainable development, but their integration into the global climate agenda remains low, the central bank said. "This situation must change, otherwise the (Russian) financial sector could face high risks in the medium term," the bank added.