The evolution of financial decisions in supporting environmentally safe, low-carbon and sustainable development is one of the modern long-term world trends. Green bonds is one of the several financial instruments that could be used to finance these sustainable transitions. As many other countries Russia needs modern tools to attract financial involvements, in order to ensure a sustainable transition to a new model of the economy. The existing prerequisite for the development of the green bond market in Russia is, first of all, the need to transition to sustainability through the introduction of green innovative technologies providing among other things a positive synergetic effect on the development of related high-tech industries which will lead to GDP growth. Also, beyond doubt, due to the existing budget deficit, it is necessary to ensure the key role of the financial markets in financing green projects and sustainable development. Meanwhile the theme of the green bonds has recently become part of the general discourse of our national leaders on the environment, green financing and energy efficiency. The Expert Council of the Russian Government noted a number of changes necessary for the introduction of the green bonds in Russia, such as the improvement of the regulatory framework, the definition of disclosure requirements, the development of approval and registration procedures, as well as standards for independent verification of green bond issues, etc. The green segment of the world economy has objectively huge prospects and, despite the current situation Russia should not be excluded from this process.
Highlights:
The record issue of green bonds in 2016 and 2017 was provided by the support of national governments and objective growth of market innovations in the field of ecology
Local green bond markets provided an additional source of long-term green financing, both for bank lending and for equity financing
The green bond market remains only a small part of the global fixed-income instruments market, but its size and significance are skyrocketing.
Requirements to issuers can lead to the fact that environmental thinking will take root in their corporate culture and business strategy
on 15% of territory of Russia where the most part of the population and capacities is concentrated, where the most productive agricultural grounds are located, the ecological situation is unfavorable
The transition to sustainable development with the help of the new concept will require active state intervention, the establishment of a state regulation regime, positive for the development of environmentally friendly industries, and serious infrastructure development.
In Russia, there are no mechanisms for creating and developing a green cluster in the economy and, in practice, there is no experience of public-private partnership in this sector.
SSE in Scotland refinances its portfolio of wind farms, placing eight-year green bonds with a coupon rate of 0.875% per annum, the Russian company takes a loan for the construction of a solar power plant at 16% per annum
The Bank of Russia, together with other institutions, needs to develop methodologies for implementing preferential programs for project green financing
To make the economy more environmentally friendly due to green financing, insurance and mandatory assessment of environmental risks in investment projects, the Ministry of Natural Resources
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