Green Bonds: New Trends in the Global Market and Opportunities for Russian Economy

138
DOI: 10.20542/0131-2227-2021-65-2-62-70
E. Kiseleva (kiseleva@kafedrapik.ru), 
Peter the Great St. Petersburg Polytechnic University, 29, Politechnicheskaya Str., 195251, St. Petersburg, Russian Federation

Abstract. Environmental finance has a reputation for delivering market-leading content based on honest and unbiased reporting, cutting-edge research and profound attention to detail. All of the above have placed it at the top of the rapidly growing green bond market. The paper argues that the green label earned with the usage of technologies that prevent environmental pollution or contribute to the stabilization of the environmental situation makes it much easier to obtain external financing on global market. The analysis of the global green bond market dynamics has revealed that almost 70% of the total amount of green bonds were issued in between 2017 and 2019. Based on the data systematization of various open sources the new trends in the global green bond market were identified. The primary trends among them include the growth in the number of smaller deals, the use of mixed funding, the extension of the labelled bonds in the market and the new climate bonds Taxonomy. The conducted analysis of green bonds issues in Russia has shown that the first issue took place in May 2019, although several major Russian companies have been making statements about their intentions to issue green bonds since 2015. The paper states the reasons for the «green» potential reduction as well as for Russia’s low involvement in the global green market. Those reasons mainly are products of immature legislative framework – poor development of regulation and legislation – and lack of its own green bond standards along with the required transparency, accuracy and integrity of disclosed information on issues to stakeholders. The creation of a sustainable development sector on Moscow stock exchange in 2019 provides to increase the issue of green bonds. Having analyzed the stated above the paper proves that the establishing of a unified green investment center linked to the Bank of Russia, as well as increasing transparency and openness of business, not only ensures the increase of green bonds issue in Russia but also contributes to overall environmental stability. 

Keywords: green bonds, environmental finance, emerging markets, trends, Russian stock market


REFERENCES

  1. Miroshnichenko O., Mostovaya N. Mirovoi rynok klimaticheskikh obligatsii: tendentsii razvitiya [Global market of climate bonds: trends and development]. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2019, vol. 63, no. 2, pp. 46-55. DOI: 10.20542/0131-2227-2019-63-2-46-55
  2. The Green Bond Principles. Paris, ICMA, 2017. Available at: https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-gbp/ (accessed 31.07.2019).
  3. Green Bonds. The State of the Market 2018. CBI, 2018. Available at: https://www.climatebonds.net/files/reports/cbi_gbm_final_032019_web.pdf (accessed 15.02.2020).
  4. The Green Bond Database Methodology. CBI, 2018. Available at: https://www.climatebonds.net/files/files/Climate-Bonds-Initiative_GreenBondMethodology_092018.pdf (accessed 15.05.2020).
  5. The Green Swan. Central Banking and Financial Stability in the Age of Climate Change. Basel, BIS, 2020. Available at: https://www.bis.org/publ/othp31.pdf (accessed 15.05.2020).
  6. Bogacheva O.V., Kabir L.S., Nikulina S.I. et al. “Zelenoe” finansirovanie kak mekhanizm finansovoi podderzhki investitsionnoi deyatel’nosti v tselyakh obespecheniya sbalansirovannogo i ustoichivogo rosta: vozmozhnosti dlya Rossii. Analiticheskaya zapiska [“Green” financing as a financial support mechanism for investment in order to ensure balanced and sustainable growth: opportunities for Russia. Report]. Financial Research Institute of the Ministry of Finance, 2016. 78 p. Available at: https://www.minfin.ru/common/upload/library/2018/06/main/2016_part_1.pdf (accessed 31.12.2019).
  7. What Are Green Bonds. The World Bank Group, PPIAF, 2015. Available at: http://treasury.worldbank.org/greenbonds (accessed 15.01.2020).
  8. Environmental Finance Bond Database. The Green Bonds. 2020. Available at: https://www.environmental-finance.com/channels/green-bonds.html (accessed 02.05.2020).
  9. Green Bond Market Summary 2019. CBI. 2020. Available at: https://www.climatebonds.net/files/reports/2019_annual_highlights-final.pdf (accessed 29.04.2020).
  10. Green Bond Market Summary Q3 2019. CBI. 2019. Available at: https://www.climatebonds.net/files/reports/cbi_q32019_highlights_final.pdf (accessed 23.01.2020).
  11. The Green Loan Principles. 2018. Available at: https://www.lma.eu.com/application/files/9115/4452/5458/741_LM_Green_Loan_Principles_Booklet_V8.pdf (accessed 21.02.2020).
  12. Sustainable Bond Insight Report 2019. Available at: https://www.environmental-finance.com/assets/files/SUS%20BONDS%20INSIGHT%20FINAL-final.pdf (accessed 21.02.2020).
  13. Masse J. Opportunity Awaits – Financing Asia’s Green Buildings through Green Bonds. Overviews Environmental Finance’s, 2018. Available at: https://www.environmental-finance.com/content/market-insight/opportunity-awaits-financing-asias-green-buildings-through-green-bonds.html (accessed 03.03. 2020).
  14. The concept of organizing a methodological system for the development of green financial instruments and responsible investment projects in Russia. Moscow, 2019. 87 p. (In Russ.) Available at: https://cbr.ru/Content/Document/File/84163/press_04102019.pdf (accessed 01.02.2020).
  15. Zhuravlev A.V. “Rezul’taty issledovaniya korporativnoi prozrachnosti krupneishikh kompanii 2019”. Vserossiiskaya konferentsiya “Korporativnaya prozrachnost’ rossiiskikh kompanii: tekushchee sostoyanie i perspektivy tsifrovizatsii” [Results of corporate transparency research of the largest companies in 2019. Conference “Corporate transparency of Russian companies: current state and prospects of digitalization”]. Moscow, 05.12.2019. (Unpublished).
  16. Bazhenov I.N. “Zelenoe” finansirovanie: mirovye tendentsii i rossiiskaya praktika [Green financing: global trends and Russian practice]. National strategy issues, 2018, no. 5 (50), pp. 172-186.
  17. Norilsk Nickel is considering the possibility to issue green bonds. Vedomosti, 26.11.2015 (In Russ.) Available at: https://www.vedomosti.ru/business/articles/2015/11/26/618398-nornikel-rassmatrivaet-vozmozhnost-vipustit-zelenie-bondi (accessed 26.11.2015).
  18. The Russian Railways is exploring potential for the launch of “green bonds” in Russia. TASS, 15.02.2015 (In Russ.) Available at: http://tass.ru/forumsochi2018/articles/4960667 (accessed 17.12.2018).
  19. RUSAL is exploring the possibility of issuing “green” bonds. Rusbonds, 17.12.2018 (In Russ.) Available at: https://www.rusbonds.ru/nwsinf.asp?id=4670010 (accessed 17.12.2018).
  20. Russian Railways placed “green” Eurobonds for 500 million Euros. TASS, 17.05.2019 (In Russ.) Available at: https://tass.ru/ekonomika/6439570 (accessed 15.12.2019).
  21. The first green bonds in Russia were placed on the Moscow Exchange (In Russ.) Available at: https://www.moex.com/n22067 (accessed 05.03.2020).
  22. The Green Bond Market in Europe 2018. CBI, 2018. Available at: https://www.climatebonds.net/files/reports/the_green_bond_market_in_europe.pdf (accessed 27.02.2020).
  23. Sustainable development sector (In Russ.) Available at: https://www.moex.com/s3019 (accessed 05.05.2020).
  24. Kiseleva E., Efimov A. Green Bonds as a Tool for Sustainable Development on Emerging Markets. International Business Information Management Association (34st IBIMA), Madrid, Spain, November 25–26, 2019, pp. 5619-5628. ISBN 978-0- 9998551-3-3. (In Print)

Registered in System SCIENCE INDEX

For citation:
Kiseleva E. Green Bonds: New Trends in the Global Market and Opportunities for Russian Economy. World Eonomy and International Relations, 2021, vol. 65, no. 2, pp. 62-70. https://doi.org/10.20542/0131-2227-2021-65-2-62-70



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies

 

Current Issue
2024, vol. 68, No. 4
Topical Themes of the Issue:
  • Financial Contagion Propagation in Europe under the Impact of Global Shocks
  • Regional Powers on the African Continent: Trends and Prospects
  • Investment Activity of the PRC in the Kyrgyz Republic
  • “Land Grabbing” Concept: Global and National Aspects
Submit an Article
INVITATION FOR PUBLICATION
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.