16 Sep 2021 14:20

CBR seeks to estimate risks of energy transition for Russian economy in long run - Yudaeva

SOCHI. Sept 16 (Interfax) - The Central Bank of Russia (CBR) wants to assess the risks of the energy transition for the country's economy on a long horizon, including through the year 2050, designated by many companies and governments as the milestone for achieving carbon neutrality.

According to First Deputy Governor Ksenia Yudaeva, the Central Bank will conduct a long stress test of the Russian economy with a forecasting horizon to 2030 and 2050 to assess the impact of climate transition risks. The regulator will develop approaches that will allow banks to analyze climate risks when granting loans.

The task of the stress test is to assess the risks of changes in the structure of energy consumption in the world, the structure of the Russian economy, the impact of carbon taxes and changes in investor strategies.

"We are now also developing a long stress test for the Russian economy, we have two versions - through 2030 and through 2050. We will look at the macroeconomic implications in general," Yudaeva said during the International Banking Forum organized by the Association of Russian Banks.

The Central Bank wants to look at changes in the structure of the Russian economy, Yudaeva specified. Such stress tests are also necessary to understand how the financial system should approach ESG risks.

Yudaeva also said that the world regulators are now working on the issue of climate risks in the analysis of credit risks.

There are two approaches - ESG ratings and approaches developed by banks themselves.

"And we are now working to develop approaches, as it can be done in Russia, and we are preparing a corresponding advisory report," Yudaeva said.