Electricity bills to rise 30% by 2050

Electricity prices will rise by 30% by 2050 if Russia cuts its carbon emissions by 60% over the next 30 years to fulfill its decarbonization commitments.

According to the VTB Capital report on ESG and Decarbonization, quoted by RBC, reducing total greenhouse gas emission volumes by 60% against 2019 will cost Russia RUR 102.7 tln ($1.4 tln). This estimate, as analysts note, generally corresponds to the Economic Development Ministry’s strategy to invest a record RUR 88.8 tln ($1.2 tln) to meet its decarbonization commitments.

The most cost-intensive sector for decarbonization is transport, followed by the cement industry and iron ore and steel production. The less costly decarbonization actions will concern waste disposal, power industry decarbonization and forestry projects.

Despite the low cost of reequipment, the power industry will lead to the most significant increase in consumer prices. Customers may eventually see their bills rise 28%, the analysts warn. At the same time, the report includes some reassuring findings: decarbonization will not necessarily slow down economic growth. On the contrary, state investment can back up tax benefits for companies making effort to decarbonize their production processes.

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