Green projects and climate change solutions are “a great way [for Russia] to alleviate sanctions pressure,” according to Sean Kidney, co-founder and CEO of Climate Bond Initiative (CBI), a global group that analyzes investments in the green economy.
“It is unlikely to be possible for sanctioned individuals, but for companies, it is quite possible,” Kidney pointed out, speaking at the COP26 UN climate change conference in Scotland. “The international community should see that these projects are real, really help fight global warming, and improve people’s lives.”
In September, Russia established a comprehensive list of the types of environmentally sustainable projects eligible for preferential loans and bonds. Companies may apply for the funds if they cut their CO2 emissions and use green technology, such as energy conservation and soil restoration, in their day-to-day work.
The Russian Taxonomy for Green Projects and the Russian Green Finance Guidelines were devised by VEB.RF, the country’s state development corporation. “The Russian taxonomy is fully compliant with the most advanced global standards,” Kidney said. “Russian market players are ready to get access the huge global green finance market, which, by the most conservative estimates, is now over $2.5 trillion.”
VEB.RF’s First Deputy Chairman Alexey Miroshnichenko said Russia’s climate makes it impossible to rely on wind and solar energy alone. “The more realistic task for us is to switch from dirtier fuels to less dirty ones, from coal and oil to gas and nuclear power,” he said.
Miroshnichenko stressed that Russia has a purely “technological” approach to a carbon-free economy: “If a technology can significantly reduce emissions, it gets our support.”
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