Financial Resources for Arctic Exploration

Abstract

The development of the rich natural resources of the Arctic and the conduct of economic activities based on the environmental, social, and corporate governance (ESG) principles implies an increasing use of green financing. Based on the analysis of the institutional infrastructure of green financing that has developed in the world economy as well as the use of green bonds, this chapter shows the possibilities and directions of the development of green financing for the implementation of projects undertaken by the Russian Federation in the Arctic zone. The identified institutions and structures of the Russian system of green financing allow us to conclude that it is incomplete and there is a weak relationship between the organizations involved in green financing in the Arctic. The necessity of using the State program “Socio-economic development of the Arctic zone of the Russian Federation until 2025,” along with budget financing, is justified the capital of private investors with the help of green bonds. The modest experience of Russian companies in placing green bonds showed the need to improve the verification system and the system of disclosure of nonfinancial information of an environmental nature of companies implementing projects with an environmental component. More complete information about the green characteristics of the projects and about the purposes of using the funds received from the placement of bonds will become prerequisites for attracting investments from the international capital market to the Arctic. In addition, improving the system of stimulating the placement of green bonds will increase the interest of Russian investors to use this tool more widely to finance green projects in the Arctic.KeywordsCapital marketGreen bondsGreen financingEnvironmental projectsThe Arctic