Russia Enters ‘Clean’ Zone

Krasnodar, 28 November – Yug Times. By the end of this year, the Central Bank of Russia will launch a pilot issuance of ‘green’ bonds.

In mid-October, the Bank of Russia’s Expert Council on long-term investments market held a discussion about the issuance of ‘green’ bonds. The Yug Times asked our experts what prospects the ecological finances may carry from the economic viewpoint, and whether they can be cost-efficient and bring profit.

Mikhail Babenko, director of WWF Russia’s Green Economy program:

“Green’’ bonds are a means to attract targeted money. You attract money not simply for your usual economic activity, but to fulfil a project with a certain environmental effect that may be measured by reduction of such factors as CO2 emissions, consumption of power and water, or negative environmental effect of wastes.”

Meanwhile, experts cannot give forecast whether the ‘green’ bonds would be a success in Russia. In their opinion, it is necessary to go with small steps. Most probably, these bonds would be placed in the midsize sector, according to the information got at the Moscow Stock Exchange and the Central Bank. It is midsize financial investment companies and, probably, physical persons that may become interested in such securities.

Violetta Gassiy, D.Sc., professor of the Department of Governmental and Municipal Management, Kuban State University:

“For the municipalities, ‘green’ bonds are a solution of the issues of financing of low-carbon investment projects. First of all, these are such spheres as public transport, power engineering, and residential construction, based on the principles of resource-saving technologies and energy efficiency. Experts state that maintenance of energy efficiency principles may help reduce the expenditures on construction of a typical block of flats by 40%, and significantly cut losses of heat and electrical energy.”

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