«Green» Financing and «Green» Budget in the Russian Federation

Abstract

The paper discusses «green» financing and its terminology. The author analyzes the purpose and objectives of «green» projects, historical aspects of their formation and development and explains their varieties in the Russian Federation. Greening of the Russian economy and financial system is considered as one of the most important directions of the state policy until 2025. The author focuses on financial instruments of «green» finance. It is noted that in 2019 for the first time the Russian Federation was singled out among the countries that issued «green» bonds (climate bonds or sustainable bonds). The author considers «green» budgeting in the budget process and elucidates analytical documents and methodological guidelines for drawing up a «green» budget. The paper highlights the experience of the «green» budget in France. The year 2021 for France was the first year of the implementation of the «green» budget, where budget revenues and expenditures were assessed taking into account their impact on the environment. It is noted that the «green» budget in France means, in fact, a new classification of budget expenditures, which is based on the criterion of environmental impact. Also the paper provides the definition of state resources for environmental development. Several aspects of the impact on the «green» state budget are highlighted, which include the fight against climate change, prevention of natural risks, effective management of water resources, combating environmental pollution, as well as the protection of natural, forest and agricultural territories. In the Russian Federation, «green» finance is only at the stage of its formation and state support for «green» investment is needed.