Analytical Center expert spoke about green bonds at the MUF plenary session

Moscow's green bonds help develop the city's modern infrastructure and at the same time are an excellent investment for the population - Russians from 73 regions have shown interest in them. This and other aspects of green bonds were discussed at the plenary session of the Moscow Urban Forum (MUF) by Timur Shakirov, Head of the Urban Infrastructure Development and Financial Modeling Department.

In addition to the Analytical Center, representatives of business, city departments and academia took part in the session devoted to the reserves for improving the environmental situation and the role of green finance.

According to Timur Shakirov, "green finance and bonded loans in general for Moscow are, first of all, a tool for infrastructure development".

"This is a task of paramount importance for the city. Green bonds contribute to the acceleration of key projects, including the Bolshaya Koltsevaya line (or Large Circle Line), and investments in this project, in turn, bring significant returns in the form of private investment," the expert emphasized. 

The peculiarity of green bonds in terms of the intended use of proceeds is transparent reporting and verification (independent confirmation) of expenditures on green projects. There is a simple answer to the question why investments in the construction of BKL are green - this infrastructure project contributes to the reduction of emissions due to a more active transition of citizens to public transportation instead of private cars. In turn, investing in replacing buses with electric buses reduces emissions directly.

Timur Shakirov also drew attention to the tool's role in improving citizens' financial literacy. "People who are just starting to invest could familiarize themselves with the features of bonds as such and improve financial literacy without participating in stock exchange operations and without risking to lose money when the exchange rate changes," the expert said, commenting on the issue of green bonds for the public.

The fact that such debt securities were purchased by Russians from 73 regions demonstrates the effectiveness of the information campaign. In addition, social surveys have shown that over 70% of Russians had a positive attitude to the issue of green bonds, and over 80% of their holders are likely or certain to buy the capital's bonds of new issues.