Template-Type: ReDIF-Paper 1.0 Author-Name: Anna Burova Author-Email: BurovaAB@cbr.ru Author-Workplace-Name: Bank of Russia, Russian Federation Author-Name: Elena Deryugina Author-Email: DeryuginaEB@cbr.ru Author-Workplace-Name: Bank of Russia, Russian Federation Author-Name: Nadezhda Ivanova Author-Email: IvanovaNS@cbr.ru Author-Workplace-Name: Bank of Russia, Russian Federation Author-Name: Maxim Morozov Author-Email: mmm1@cbr.ru Author-Workplace-Name: Bank of Russia, Russian Federation Author-Name: Natalia Turdyeva Author-Email: TurdyevaNA@cbr.ru Author-Workplace-Name: Bank of Russia, Russian Federation Title: Transmission to a low-carbon economy and its implications for financial stability in Russia Abstract: Energy transition and climate policies associated with it may become one of the major challenges for the Russian economy. We present an approach to assessing consequences of climate policy for Russia and evaluating related transition risks for the country’s financial system. This approach relies on a CGE model for the Russian economy and a financial model based on firm-level data. We show that both international and domestic climate policies affect the financial stability of the Russian Federation. The effects of international climate actions summarised in the NGFS Net Zero 2050 scenario are bigger than the effects of the introduction of a domestic emission trading system with a reduction goal of the Intensive scenario of the Russian state strategy of low-carbon development. Length: 87 pages Creation-Date: 2023-02 Revision-Date: Publication-Status: File-URL: http://cbr.ru/StaticHtml/File/145114/wp_109.pdf File-Format: Application/pdf File-Function: Number: wps109 Classification-JEL: C68, E51, E62, G10, G21, Q52, Q54, Q58 Keywords: Russia, climate policy, energy transition, transition risk, financial stability, CGE Handle:RePEc:bkr:wpaper:wps109