Environmental policies in Russia: problems of state funding and implementation

Sosnovskikh, Sergey ORCID: https://orcid.org/0000-0002-3744-740X (2023) Environmental policies in Russia: problems of state funding and implementation. In: Environmental Finance and Green Banking: contemporary and emerging issues. Routledge Explorations in Environmental Economics . Routledge, London, pp. 169-208. ISBN 9781032072616 (hardback); 9781003206194 (ebook)

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Abstract

Russia has entered the contours of the modern global ecosystem in sustainable finance and responsible investment practices. Its national projects are complex and ensure a balance of all three components of sustainable development: economic, social and environmental factors. In 2019, the active formation of the green finance market took place in Russia. The green economy was officially proclaimed by the federal government and industry experts. Target programmes for environmental protection were adopted at the national and regional levels, taking into account the ecological specifics of the regions. However, the Russian economy is highly dependent on the extraction of mineral resources and hydrocarbons (e.g. oil and gas). This chapter investigates the Russian federal government’s policies to resolve the ongoing environmental issues in the country, including a critical evaluation of various state programmes, the effectiveness of their implementation and an examination of legislation and macro statistics. The following conclusions are made. The national strategy for financing sustainable development has an unclear structure with incomplete coverage and an unsystematic approach. Hence, the transition to the model of green economic growth is questionable. The definition of a green economy is not adequately formed; thus, it is challenging for the government and businesses to measure, manage and regulate it. As a result, it complicates the formation of financing mechanisms for green investments. This is also constrained by the lack of general agreement on which sectors of the national economy are recognised as negatively affecting the environment.