Cost of climate plan for Russia’s salvation was estimated

VTB Capital Analysts appreciated the cost of a climate plan to save Russia and achievements by the national economy of carbon neutrality. Calculations are at the disposal of “Tape.ru”.

The authors calculated several scenarios and degrees to achieve carbon neutrality (abandonment of harmful emissions or compensation) by 2060. Such a goal was previously supplied by President Vladimir Putin.

Reduced emissions by 25 percent by 2060 will cost Russia 43 trillion rubles (1.3 percent of GDP annually), by 50 percent – 86.6 trillion (2.7 percent of GDP), 100 percent – in 479, 8 trillion (15 percent of GDP). Thus, analysts concluded that over time, the price of decarbonization of the economy will grow due to inflation.

At the same time, the authors prepared an alternative and less expensive option to achieve carbon neutrality by 2060. He does not imply complete emissions and provides compensation measures. Such a plan will cost 102.7 trillion rubles and emphasizes the disposal of garbage disposal, decrease in methane emissions, decarbonization of electric power industry and forestry projects. The share of these industries total accounts for 59 percent of the total emissions in Russia.

Also, the authors note that decarbonization costs can lead to increased inflation. The most significant increase in prices in the electric power industry and the cement industry (28 and 40 percent, respectively).

/Media reports.