Green Central Banking in the Russian Federation
Green Central Banking in the Russian Federation

Summary/Abstract: In recent years, the exacerbation of the impacts of climate change on natural capital, social structures, and economic systems has prompted central banks and financial regulatory authorities across various jurisdictions to intensify efforts to address the physical and transitional risks affecting financial institutions and the broader financial system. In this context, the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) was established in December 2017 to support climate risk management within the financial sector and facilitate its transition toward a sustainable economy. As of March 2024, the NGFS membership has expanded from eight countries at its inception to 134 central banks and financial regulatory authorities. The growing inclusion of central banks and financial regulatory authorities from both developed and emerging economies has resulted in more complex and multifaceted discussions within the NGFS. Focusing on the Russian Federation (Russia)—one of the world’s largest energy-rich countries—its greenhouse gas (GHG) emissions, including carbon dioxide (CO2), rank among the highest globally. When adjusted for economic size, Russia’s emissions per unit of GDP are also among the worst in the world. In response, the Central Bank of the Russian Federation (Bank of Russia) joined the NGFS in December 2019. Since then, Russia has been working on easing capital requirements for financial institutions that invest in or lend support to climate change measures, while also developing a roadmap for its climate commitments. Although research specifically focusing on green central banking—particularly the response of central banks to climate change—has progressed rapidly in recent years, it remains an emerging field. In particular, there is currently limited research on this topic concerning emerging and developing countries, including Russia (see Section 2).

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