Financial Journal

p. 10-25

Authors: Zhanna A. Mingaleva

The article is devoted to analyzing the main institutional mechanisms of the process of financing the programs for the least developed countries’ adaptation to negative climate change, implemented within the UN Framework Convention on Climate Change (UNFCCC). The paper presents the results of the analysis of basic institutions designed to support the financing processes for sustainable development and adaptation to negative climate changes developed at the international level. The analysis covers two stages of creating and developing a system of financial institutions for international support: the Kyoto Protocol and the Paris Agreement. The reasons behind the need for further transformation of institutional mechanisms for financing adaptation programs are identified. As a result of the study, it is concluded that the key obstacles to the successful implementation of financial adaptation mechanisms are their weak institutional basis and the presence of conflicts in international documents on climate regulation and sustainable development. Based on the institutional analysis, it is shown that the institutions that form the core of international financing mechanisms are characterized by internal and external contradictions and have low implementability as well as low attractiveness for investors. It is concluded that limited access to financial capital is one of the key reasons for the slow resolution of the problem of combating environmental pollution and negative climate change as well as achieving the corresponding goal of sustainable development.

p. 37-51

Authors: Elena P. Fedorova

Problems related to green finance exist in all the countries of the world. Those problems are especially acute in the developing countries, whose economic growth depends on recovery of hydrocarbon fossil fuels. To research the history of issues related to green finance and identify the key reasons hampering its development, this article presents a systematic literature review; it applies a systematic analytical approach to researching green finance. The paper considers the key notions and the world expertise gained in the resolution of problems related to green finance; it also presents a statistical analysis of data provided by websites of international institutions and financial organizations. This article analyzes a number of problems that are unique for green finance: disagreement in interpreting the concepts of “green finance” and “green economy sectors”; difficulties related to assessment and evaluation of the external effect exerted by green finance; institutional reasons hampering the development of green finance; information asymmetry; and problems related to estimation of credit and market risks. The paper considers innovations in the financial sector that are typical for long-term investment, such as green bonds, asset-backed security, and yield cos. As a result, the article concludes that cooperation between the government, international institutions, and business companies is necessary to resolve the issues of green finance. The government ought to play the key role in that cooperation — it must inform, coordinate, stimulate, and control activities related to green finance.

p. 69-84

Authors: Vladislav N. Rutskiy, Maria V. Osipenko

These days many countries declare saving natural resources and reducing anthropogenic pressure on the environment as being among their national priorities. They place importance on sustainable development and the transition to a green economy model. However, the problem of assessing the effectiveness of the green economy and the competitiveness of related technologies is still open to debate. The paper examines approaches to measuring the green economy and presents an empirical analysis of the relationship between labor productivity in the manufacturing industry and green economy factors for a number of European Union countries, characterized by high performance in the global rankings of the green economy. Studying approaches to the identification and measurement of the green economy, the authors identify trends in the realization of a new environmentally sustainable development model in the countries of the European Union and the dynamics of key indicators of the green economy. The paper develops an empirical correlation and regression model that defines, along with other factors, the influence of green economy factors on labor productivity in manufacturing. An assessment of the model specification based on panel data from the manufacturing industries of seven European countries shows a significant positive effect of investment in equipment and plant for pollution control on labor productivity in the industry. The results indicate the relevance of further studies, in particular, the possible attractiveness of private investment in the formation of a green economy in various sectors of the economy in both developed and developing countries.

p. 101-116

Authors: Irina I. Prosvirina, Natalya S. Dovbiy

Russia has been gradually expanding the principles of green development in the national economy. The article examines the state of methodological and institutional support for green investments, and analyzes the problems that hinder the financing of the best available techniques. The leading role of the state in eliminating institutional gaps between the individual interests of investors and the collective problems of society is established. The authors have investigated various criteria for selecting sources of financing and concluded that it is appropriate to develop green lending relationships in Russia, taking into account regulatory restrictions and ESG risks. In the theoretical (methodological) aspect, the authors have identified specific features of green financing as a trinity of elements: “Object–Subject–Institutional Environment”; each of the features must meet the principles of green financing. The necessity of further formation of the institutional environment for green financing is justified. In practical terms, statistical data-based modeling has been carried out for entities from a list of 300 polluting enterprises that need to update their fixed assets based on the best available techniques. This study has provided answers to the questions of what factors influence the growth of non-current assets, including factors related to the sources of their financing. It is determined that first of all enterprises solve the problem of current management and working capital adequacy, and only then begin to direct financial resources to updating the fixed capital. Based on the results obtained, the main problems are formed and the main tasks of the nearest development of green development principles in the Russian economy are shown. When writing the article, the authors used modern methods of systemic and statistical analysis as well as economic and mathematical modeling.