Formation of the Green Segment of the National Financial Market: Experience of Countries with a Significant Share of the Commodity Economy

The presented study examines the experience of integration of sustainable development principles into the national strategies of countries with a significant share of the commodity economy.
Aim. The study aims to generalize the experience of countries in terms of measures aimed at the formation of conditions for the development of the green segment of the national financial market.
Tasks. The authors compare initiatives in the field of sustainable development and green investment implemented by different countries and their approaches to the formation and development of the green segment of the national financial market.
Methods. This study uses general scientific methods of cognition to examine the specific features of the approach to the funding of sustainable development and green economic growth implemented by the countries.
Results. The authors examine the issues of the integration of sustainable development principles into national strategies and policies through the example of five countries. The following aspects are analyzed: comparison of the key indicators of socio-economic development; actions taken to reorientate the commodity economy; implemented strategies for the formation of the green segment of the economy; the achieved results. The analysis generalizes the countries’ approaches to the reorientation of economic entities toward sustainable activities; describes the selected directions for the formation of funding sources for sustainable activities and national solutions in financial market regulation; systematizes market tools for the funding of green investment and determines the configuration of the green segment of the national financial market in the examined countries.
Conclusions. The examined experience of several countries shows that the government plays an important role in the formation of the green segment of the national financial market, and there is a variety of approaches to sustainable development and the model of green economic growth based on it. The countries have different priorities, including social and environmental factors on the national agenda. A wide range of tools are used to reorientate toward sustainable activities, but the key problem for all countries lies in the formation of funding sources for sustainable activities. The countries are essentially reformatting the financial landscape, attempting to transfer the burden of funding of economic development from the government to the market.

1. The future we want: Outcome document of the United Nations Conference on Sustainable Development (Rio de Janeiro, June 20-22, 2012). URL: https://sustainabledevelopment.un.org/content/documents/733FutureWeWant.pdf (accessed on 20.07.2019).

2. Transforming our world: The 2030 Agenda for sustainable development. Resolution adopted by the General Assembly on September 25, 2015. URL: https://www.unfpa.org/sites/default/files/resource-pdf/Resolution_A_RES_70_1_EN.pdf (accessed on 20.07.2019).

3. The Paris Agreement: Adopted on December 12, 2015 at the 21st session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (Paris, Nov. 30 — Dec. 13, 2015). URL: https://unfccc.int/sites/default/files/english_paris_agreement.pdf (accessed on 20.07.2019).

4. Towards a green economy: Pathways to sustainable development and poverty eradication. A synthesis for policy makers. United Nations Environment Programme (UNEP). 2011. URL: https://sustainabledevelopment.un.org/content/documents/126GER_synthesis_en.pdf (accessed on 20.07.2019).

5. Towards a green economy in Europe: EU environmental policy targets and objectives 2010–2050. Copenhagen: European Environment Agency; 2013. URL: https://www.eea.europa.eu/publications/towards-a-green-economy-in-europe (accessed on 20.07.2019).

6. Towards green growth? Tracking progress. Paris: Organisation for Economic Co-operation and Development (OECD); 2015. 96 p.

7. Declaration on green growth. Adopted at the meeting of the Council at Ministerial Level on June 25, 2009. Paris: Organisation for Economic Co-operation and Development (OECD). URL: http://www.oecd.org/env/44077822.pdf (accessed on 20.07.2019).

8. Yakovlev I. A., Kabir L. S., Nikulina S. I., Rakov I. D. Financing green economic growth: Conceptions, problems, approaches. Nauchno-issledovatel’skii finansovyi institut. Finansovyi zhurnal = Financial Research Institute. Financial Journal. 2017;(3):9-21. (In Russ.).

9. Yakovlev I. A., Kabir L. S. Green investment financing mechanism as an element of the national strategy for sustainable development financing. Nauchno-issledovatel’skii finansovyi institut. Finansovyi zhurnal = Financial Research Institute. Financial Journal. 2018;(3):9-20. (In Russ.). DOI: 10.31107/2075-1990-2018-3-9-20.

10. Formation of conditions for the development of green investments: A comparative analysis of national initiatives and projects in the field of sustainable development, applicable mechanisms of internal regulation and strategies for the formation of a green segment of the national financial market. An analytical note. Moscow: Financial Research Institute; 2019. 98 p. (In Russ.).