Stakeholder-driven scenario analysis of ambitious decarbonisation of the Russian economy

Abstract

Climate change mitigation entails different meanings for developed and developing countries. As a major emitting, high-income, developing economy that is largely dependant on hydrocarbons, Russia currently sits in the middle of the two groups, needing not only to drastically reduce emissions but also to ensure necessary economic growth to finance decarbonisation. This study explores two mitigation scenarios, one reflecting a cautious and the other a more ambitious decarbonisation pathway for Russia. These scenarios are co-created with a group of 135 national stakeholders, who inform the underlying assumptions based on their perceptions, expectations, and reservations: the more conservative scenario reflects the average of all input, while the ambitious scenario represents the optimistic end of the stakeholder input range. The two scenarios are modelled in CONTO, an input-output system of interconnected macro-structural calculations at the national level, to analyse the interplay between Russia's economy and decarbonisation progress, shedding light on the implications of mitigation for socioeconomic development. We find that, even for a country as dependant on hydrocarbons and under the most ambitious pathway that is still within experts’ realistic reach, Russia can achieve drastic reduction in absolute emissions and reach net-zero closely after 2050, while also achieving positive economic development in the long run. We highlight the need to prioritise a diverse set of mitigation options currently available and relevant to the Russian context, including energy efficiency and intensity improvements, electrification, and nuclear power, as well as to exploit the large potential lying within the Russian ecosystem's carbon sinks.