How does increase amount of the carbon dioxide in the blood affect kidney and causes renal failure?

Respiratory acidosis: It doesn't. Increased carbon dioxide causes a acidic shift in the blood. The kidneys will try to buffer the acidosis by excreting hydrogen ion. If the kidneys are impaired then their ability to compensate will be reduced and then further damage can occur.

Carbon Dioxide : Good question. Your kidneys have many functions. One is to maintain ph balance. When your body accumulates too much carbon dioxide(co2) your kidneys work to eliminate it. Co2 makes your body more acidic. The acidity not only makes your kidneys work harder, but it also makes all body functions less efficient. Over time this can cause kidney failure. This is not a common cause of kidney failure.