Green financing is under consideration for construction of new port in Liinakhamary
Green financing is under consideration for the project on construction of a new port in Liinakhamary (Murmansk Region) by OOO Pribrezhny. As the investing company told IAA PortNews, they are planning a cooperation with Vnesheconombank (VEB) that is to establish a Methodological Center on Green and Sustainable Financing.
The Liinakhamary location features a number of advantages for application of the green bond mechanism: the plot intended for construction of terminals is well away from other centers of life activities; there are no settlements with permanent population in the proximity of Liinakhamary; there is infrastructure allowing for arranging comprehensive processing and disposal of waste under the zero discharge programme.
The zero discharge approach to implementation of projects in the Arctic zone is crucial for keeping a vulnerable environment balance in the region in line with the key points of Russia’s state policy in the Arctic.
A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects. 70-90% of the amount raised through green bonds is allocated to investors. The amount depends on which equipment is involved: domestic or foreign one. Besides, the Ministry of Industry and Trade has developed a mechanism to cover bank rate for green loans that is to supplement the green bond programme.
In February 2020, the Bank of Russia announced the development of standards for green bond issuance. The document has been submitted to the Ministry of Justice for registration.
From 2018, the Moscow Exchange has floated 4 issues of green bonds: RUB 1.1 billion issue by RSB KHMAO in December 2018; RUB 250 million issue by CINB and RUB 500 million issue by Garant-Invest in 2019 and UB 5.7 billion by Solar Systems in 2020.
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