The Green Finance Committee of VEB.RF has recognized Moscow’s new bonds as a “green” financial instrument. This status implies stricter reporting and control over the spending of funds. According to the Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov, Moscow is placing bonds to increase funding for environmental development projects in the city.
Green bonds are debt securities that are issued to attract investment in projects aimed at improving the environmental situation. Earlier, the Moscow government announced that it would start placing green bonds at the end of May. The volume of the issue will be 70 billion rubles.
“A large number of ‘green’ projects are being implemented in the capital, first of all, this is the construction of the Big Ring Metro Line, the purchase of electric buses is an environmentally friendly transport recognized all over the world. Therefore, one of our issues in the volume of 70 billion rubles will be “green”, although the total volume of environmental projects in Moscow is much larger, we start “green” borrowing with such an amount, “said the vice mayor.
According to Maria Bagreeva, Deputy Chief of Staff of the Mayor and Government of Moscow, green bonds will become a new tool to accelerate the implementation of important projects to develop environmentally friendly public transport.