The Bank of Russia on financing sustainable development

The issues of the national sustainable development agenda remain relevant in the context of the ongoing structural transformation and future modernization of the Russian economy, important for ensuring a high quality of life and well-being of Russian citizens.
The resolution of issues of sustainable development, according to the materials of the Bank of Russia, is also significant for the full-fledged building of relations with foreign partners from among friendly countries that are also moving in this direction, especially in terms of the "green" agenda.
It is important for Russia not to be among the laggards in implementing the principles of sustainable development, which will be fraught with increased risks for both the economy and the financial sector, so it is necessary to continue moving in this direction, the Bank of Russia notes.
Emphasis will be placed on the development of instruments for financing projects in the field of new energy, decarbonization and adaptation to climate change, environmental protection, solving social issues, ensuring technological sovereignty and modernization of the economy.
There will also be monitoring of the implementation of ESG ratings by Russian organizations.
According to the Bank of Russia, it is important to develop a national system of carbon regulation and a system of exchange trading in carbon units with the involvement of clearing infrastructure for the purpose of providing settlements under the "supply versus payment" (DVP) model and counting on the possible netting of the carbon footprint within the country based on the market price for carbon generated in the domestic market. 
In addition, the Bank of Russia considers it necessary to ensure the recognition of such netting of the carbon footprint for exported products abroad through the integration of greenhouse gas emissions trading systems or mutual recognition of carbon regulation by the markets of friendly countries.

Alex Shishlo for Rough&Polished