Bank lending as a source of financing for environmental investments

Abstract

Purpose : the authors identify the problems of environmental lending in Russia and develop the measures aimed at improving the efficiency of Bank lending to environmental investment projects. Discussion : environmental investments are a special type of investment aimed at protecting the environment, as well as rational use of natural resources. The volume of investments in fixed assets aimed at protecting the environment and rational use of natural resources in Russia has been increasing over the past eight years, and investments aimed at protecting the atmospheric air are increasing more dynamically. Funding for environmental activities and environmental programs is provided from a variety of sources, including Bank lending. An environmental investment loan is a long-term type of loan that is offered by financial and credit institutions for legal entities or individuals to direct the money received to implement an environmental investment program in compliance with the principles of Bank lending. In our opinion, the credit system should be organized in such a way that it is profitable for the company to carry out environmental measures, and for banks to issue the necessary loans. The instruments of the credit system include preferential interest rates on loans for the purchase of environmental protection equipment and the introduction of low-waste technologies. To improve the efficiency of environmental management, grants should be provided to Finance preferential interest rates on loans for environmental purposes. Then operations for crediting environmental measures will become equally profitable in comparison with other loans. Results : the authors proposed specific measures to improve the effectiveness of attracting environmental loans to Finance environmental investment projects.