Efficient natural resource management accelerates economic progress while unsolved environmental problems impede it

Natural resources are critical for Russia’s economic development and are an important source of income. Better natural resource management and improvements in environmental sustainability are among the key requisites for economic growth and social progress.

By contrast, environmental challenges, resulting from climate change and pollution, threaten Russia’s competitiveness and productivity and pose risks to economic sustainability and the financial sector. Inefficient uses of natural resources impose large economic and social costs and endanger long-term sustainability.

The funding required for ‘greening’ the economy mostly comes from the private sector

Many foreign countries have already embarked on transition to green economy. А large proportion of the funding required for financing sustainable and green economic growth comes from the private sector. Investments that have potential for ‘greening’ and ‘decarbonization’ of the economy include infrastructure in the energy, municipal waste, wastewater treatment, transport, and construction sectors and large multipurpose water infrastructure.

Supporting measures of state policy and coordinated actions will speed up the transition to green economy

If supporting policies are in place and implemented, Russia’s financial system could finance large amounts of bankable green projects.

Promoting new instruments or platforms requires coordinated action, as illustrated through international experiences in developing green finance markets, and it is important to have an institution assuming leadership and ensuring the cooperation of green project suppliers, investors, and regulators.

New international standards for investment and strong support for innovation should become the foundation for green financing

Mobilizing the required funding for financing sustainable and green economic growth calls for not only re-shaping key parts of the financial system but also identifying and setting new international standards for investment.

Appropriate policies, supported by innovation, can create economic opportunities that will help reconcile environmental and economic development objectives, resolve a number of related issues, and stimulate the development of bankable green projects.