Abstract
The climate agenda has recently gained new importance as global climate change threatens all of humanity. The regulation of green finance instruments needs to be improved to attract more money to fight global warming. To ensure investor confidence in green instruments, a common standard for them must be created. The European Union and Russia are forming a legal and regulatory framework to create national standards for green bonds. A comparative legal study of the EU and Russian draft laws on green finance has demonstrated similar approaches in the creation of regulatory rules. This article describes the prospects for green finance in the context of digitalisation. Based on a study of best practices (green asset wallet, digital green bonds, etc.), it is concluded that digital solutions for sustainable finance are currently still underdeveloped. However, in the future, their use will significantly increase investor confidence in green instruments and reduce costs, including through the digitalisation of the verification process.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
Tuhkanen (2020).
- 2.
- 3.
Climate Bonds Initiative. Accessed February 15, 2023. https://www.climatebonds.net/.
- 4.
Theodoropoulou Sotiria (2021). https://www.etui.org/news/european-green-bond-standard-good-initiative-hanging-balance.
- 5.
Flammer (2021), pp. 499–516.
- 6.
Grene (2015).
- 7.
Kenton (2021).
- 8.
Green Bond Principles. ISMA (n.d.).
- 9.
European Commission (2019).
- 10.
European Commission (2021).
- 11.
Simon (2021).
- 12.
Euronews (2021).
- 13.
European Commission (2022).
- 14.
Amaro (2022).
- 15.
Abousahl et al. (2021).
- 16.
- 17.
European Commission (2021).
- 18.
Fatica and Panzica (2021), pp. 2688–2701.
- 19.
RZD (n.d.).
- 20.
Gutbrod et al. (2017), pp. 44–52.
- 21.
Bogacheva and Smorodinov (2016), pp. 70–81.
- 22.
Official Internet Resources of the President of Russia (January 24, 2017).
- 23.
Parshley (2021).
- 24.
TASS May 26 (2011).
- 25.
Ilina (2021).
- 26.
- 27.
Puschmann et al. (2020), p. 10691.
- 28.
Green Assets Wallet (n.d.).
- 29.
HSBC (2019).
- 30.
Fariña, Pilar M. BBVA issues the first blockchain-supported structured green bond for MAPFRE. February 19, 2019. https://www.bbva.com/en/sustainability/bbva-issues-the-first-blockchain-supported-structured-green-bond-for-mapfre/.
- 31.
BIS Innovation Hub (2021b).
- 32.
BIS Innovation Hub (2021c).
- 33.
BIS Innovation Hub (2021a).
- 34.
HSBC (2019).
- 35.
References
Abousahl S, Carbol P, Farrar B, Gerbelova H, Konings R, Lubomirova K, Martin Ramos M, Matuzas V, Nilsson K, Peerani P, Peinador Veira M, Rondinella V, Van Kalleveen A, Van Winckel S, Vegh J, Wastin F (2021, ISBN 978-92-76-40538-2, JRC125953) Technical assessment of nuclear energy with respect to the ‘do no significant harm’ criteria of regulation (EU) 2020/852 (‘taxonomy regulation’), EUR 30777 EN. Publications Office of the European Union, Luxembourg. https://doi.org/10.2760/207251
Aksyutin OE, Ishkov AG, Romanov KV, Grachev VA (2020) The role of natural gas in Achieving Sustainable Development Goals. Int J Energy Econ Policy 10(4):463–472
Amaro S (2022) EU’s plan to include gas and nuclear in ‘green’ ranking leaves investors confused. CNBC. January 6, 2022. https://www.cnbc.com/2022/01/06/eus-plan-to-include-gas-nuclear-in-green-ranking-leaves-investors-confused.html
Arner DW, Buckley RP, Zetzsche DA, Robin V (2020) Sustainability, FinTech and financial inclusion. Eur Bus Organ Law Rev 21(1):7–35
Bayat-Renoux F, Svensson U, Chebly J (2018) Digital technologies for mobilizing sustainable finance applications of digital technologies to sustainable finance. Sustainable Digital Finance Alliance. https://docs.wixstatic.com/ugd/3d4f2c_6767ef5b999c4e3fa42c0e05e6ea2ac3.pdf
BIS Innovation Hub (2021a) Project Genesis: Prototype digital platforms for green bond tokenisation. November 4, 2021. https://www.bis.org/publ/othp43.htm
BIS Innovation Hub (2021b) Project Genesis – Report 3. A prototype for green bond tokenisation by Digital Asset and GFT. November 2021. https://www.bis.org/publ/othp43_report3.pdf
BIS Innovation Hub (2021c) Project Genesis – Report 2. A prototype for green bond tokenisation by the Liberty Consortium. November 2021. https://www.bis.org/publ/othp43_report2.pdf
Blandin A, Pieters G, Wu Y, Eisermann T, Dek A, Taylor S, Njoki D (2020) 3rd Global cryptoasset benchmarking study. September 2020. https://www.jbs.cam.ac.uk/wp-content/uploads/2021/01/2021-ccaf-3rd-global-cryptoassetbenchmarking-study.pdf
Bogacheva O, Smorodinov O (2016) «green» bonds as an essential tool for financing «green» projects. Financ J 2:70–81
Brook BW, Alonso A, Meneley DA, Misak J, Blees T, van Erp JB (2014) Why nuclear energy is sustainable and has to be part of the energy mix. Sustain Mater Technol 1-2:8–16
Calvo-Pardo HF, Mancini T, Olmo J (2021) Machine Learning the Carbon Footprint of Bitcoin Mining. SSRN. June 1, 2021. https://ssrn.com/abstract=3886737
Climate Bonds Initiative. Accessed February 15, 2023. https://www.climatebonds.net/
Deng X, Huang Z, Cheng X (2019) FinTech and sustainable development: evidence from China based on p2p data. Sustainability 11:6434
Euronews (2021) Brussels delays decision on making natural gas and nuclear energy a green investment. April 21, 2021. https://www.euronews.com/2021/04/21/brussels-delays-decision-on-making-natural-gas-and-nuclear-energy-a-green-investment
European Commission (2019) The European Green Deal sets out how to make Europe the first climate-neutral continent by 2050, boosting the economy, improving people's health and quality of life, caring for nature, and leaving no one behind. December 11, 2019. https://ec.europa.eu/commission/presscorner/detail/e%20n/ip_19_6691
European Commission (2021) Communication from the commission to the European Parliament, the Council, the European economic and social committee and the Committee of the Regions Empty Strategy for Financing the Transition to a Sustainable Economy. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52021DC0390
European Commission (2022) EU Taxonomy: Commission begins expert consultations on Complementary Delegated Act covering certain nuclear and gas activities. January 1, 2022. https://ec.europa.eu/commission/presscorner/detail/en/IP_22_2
Fatica S, Panzica R (2021) Green bonds as a tool against climate change? Bus Strateg Environ 30(5):2688–2701. https://doi.org/10.1002/bse.2771
Flammer C (2021) Corporate green bonds. J Financ Econ 142(2):499–516. https://doi.org/10.1016/j.jfineco.2021.01.010
Foteinis S (2018) Bitcoin's alarming carbon footprint. Nature 554:169–169. https://doi.org/10.1038/d41586-018-01625-x
Green Assets Wallet (n.d.). https://greenassetswallet.io/
Green Bond Principles. ISMA (n.d.). https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/green-bond-principles-gbp/
Grene S (2015) The dark side of green bonds. Financial Times. June 14, 2015. https://www.ft.com/content/16bd9a48-0f76-11e5-b968-00144feabdc0
Gutbrod M, Khrapliva J, Volodin S (2017) Green bonds as a new financial instrument and prospects for their introduction in Russia. Curr Regul Curr Control 9:44–52
Houy N (2019) Rational mining limits bitcoin emissions. Nat Clim Chang 9:655–655
HSBC (2019) Blockchain. Gateway for sustainability linked bonds. HSBC, Sustainable Digital Finance Alliance. September 24, 2019. https://www.sustainablefinance.hsbc.com/mobilising-finance/blockchain-gateway-for-sustainability-linked-bonds
Ilina T (2021) Hydropower engineering in Russia will have to fight for “green” status. Hydrotechnika 2. https://www.hydroteh.ru/articles/add/rossijskoj_gidroenergetike_pridetsja_poborotsja_za_status_zelenoj_144/
Kenton W (2021) Greenwashing. Investopedia. Jan 23, 2021. https://www.investopedia.com/terms/g/greenwashing.asp
Nassiry D (2018) The role of fintech in unlocking green finance: Policy insights for developing countries. № 883. ADBI Working Paper
Nicol M, Shishlov I, Cochran I (2018) Green Bonds: Improving Their Contribution to the Low-Carbon and Climate Resilient Transition. Green Bonds Research Program Work Package 1. February 2018. https://www.i4ce.org/download/green-bonds-improving-their-contribution/
Official Internet Resources of the President of Russia (January 24, 2017). http://www.kremlin.ru/acts/assignments/orders/53775
Parshley L (2021) The controversial future of nuclear power in the U.S. National Geographic. May 4, 2021. https://www.nationalgeographic.com/environment/article/nuclear-plants-are-closing-in-the-us-should-we-build-more
Prince NS, Shabbir Alam M, Murshed M, Mahmood H, Ahmad P (2021) The roles of nuclear energy, renewable energy, and economic growth in the abatement of carbon dioxide emissions in the G7 countries. Environ Sci Pollut Res 28:47957–47972
Puschmann T, Hoffmann CH, Khmarskyi V (2020) How green FinTech can alleviate the impact of climate change—the case of Switzerland. Sustainability 12(24):10691
Qin S, Klaaßen L, Gallersdörfer U, Stoll C, Zhang D (2020) Bitcoin's future carbon footprint. ArXiv abs/2011.02612
RZD (n.d.). https://company.rzd.ru/ru/9972/page/103290?id=18195#main-header
Safari A, Das N, Langhelle O, Roy J, Assadi M (2019) Natural gas: a transition fuel for sustainable energy system transformation? Energy Sci Eng 7(4):1075–1094
Sancak IE (2021) Sustainable digital finance. SSRN. November 13, 2021. https://ssrn.com/abstract=3962698
Simon F (2021) Germany leads call to keep nuclear out of EU green finance taxonomy. EURACTIV.com. July 2, 2021. https://www.euractiv.com/section/energy-environment/news/germany-leads-call-to-keep-nuclear-out-of-eu-green-finance-taxonomy/
Stoll C, Klaaßen L, Gallersdörfer U (2019) The carbon footprint of bitcoin. Joule 3:1647–1166
TASS (26 May 2011). https://tass.ru/ekonomika/11476773
Theodoropoulou Sotiria (8 July 2021) The European green bond standard: a good initiative hanging in the balance. ETUI. https://www.etui.org/news/european-green-bond-standard-good-initiative-hanging-balance
Tuhkanen H (2020). Green bonds: a mechanism for bridging the adaptation gap? Stockholm. https://www.sei.org/wp-content/uploads/2020/02/sei-working-paper-green-bonds-tuhkanen.pdf
Volker B (2021) Green finance in Europe – strategy, regulation and instruments. Intereconomics 56(6):323–330
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Sannikova, L.V. (2024). Green Finance in the EU and Russia: Legal Frameworks and Opportunities of Digitalisation. In: Sannikova, L.V. (eds) Digital Technologies and Distributed Registries for Sustainable Development. Law, Governance and Technology Series, vol 64. Springer, Cham. https://doi.org/10.1007/978-3-031-51067-0_6
Download citation
DOI: https://doi.org/10.1007/978-3-031-51067-0_6
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-51066-3
Online ISBN: 978-3-031-51067-0
eBook Packages: Law and CriminologyLaw and Criminology (R0)