Russia's central bank consults on climate transition risk
The Bank of Russia has launched a public consultation on draft recommendations for banks' stress testing of climate transition risks. Feedback on the paper is requested by July 8, 2026.
Preparing for a green shift
The Bank of Russia's draft recommendations aim to equip financial institutions with tools to assess the resilience of their credit portfolios against the evolving landscape of climate transition risks.
By identifying the most exposed borrowers and sectors, banks can proactively adjust their strategies, refine their portfolio structures, and adapt their approaches to client engagement.
This forward-looking preparation is designed to enhance the overall stability and resilience of the Russian financial system in the face of global shifts towards renewable energy.
The central bank emphasizes that this initiative will allow for early adjustments, mitigating potential disruptions that could arise from new climate policy measures and their impact on trade.
Modeling climate policy impacts
To facilitate the stress testing process, the Bank of Russia will provide specific macroscenarios to commercial banks.
The baseline scenario envisions a gradual integration of technological innovations without new, stringent climate policy measures.
The stress scenario, however, posits a future where countries globally strengthen climate policy, leading to an accelerated phase-out of hydrocarbons.
This more aggressive transition could create new trade barriers, potentially impacting Russian exports as global energy markets shift.