Technological modernization of the national economy as an indicator of green finance: Data analysis on the example of Russia

Liudmila S. Kabir; Zhanna A. Mingaleva; Ivan D. Rakov; Liudmila S. Kabir; Zhanna A. Mingaleva; Ivan D. Rakov

doi:10.3934/GF.2025006

Green Finance

2025, Volume 7, Issue 1: 146-174. doi: 10.3934/GF.2025006

Previous Article Next Article

Research article

Technological modernization of the national economy as an indicator of green finance: Data analysis on the example of Russia

1.
International Finance Centre, Financial Research Institute of the Ministry of Finance of the Russian Federation, 127006, Moscow, Nastasyinsky Lane, 3, b. 2, Russian Federation
2.
Department of Economics and Industrial Production Management, Perm National Research Polytechnic University, 614990, Perm, 29 Komsomol'skay av., Russian Federation

Received: 28 July 2024 Revised: 26 November 2024 Accepted: 26 January 2025 Published: 01 March 2025
JEL Codes: O11, O14, O16, F65

Background
In Russia, there is no publicly available information to analyze green finance, but companies claim significant amounts of raised funds that are labeled as green. Green finance and technological modernization are interrelated processes. Therefore, the focus of the research is to find an answer to the question: has green finance had an impact on the technological modernization of Russian industry? The goal is to find indicators that confirm the real, not imaginary, nature of green finance. The research method is based on statistical analysis with presentation of consolidated data in graphical and tabular form. Assessment of the degree of penetration of the green economy is carried out through analyzing the ongoing changes in the structure of industry.
Results
The available green finance has not had an impact on the technological modernization of the Russian industry. The creation of a new green segment of the national financial market is blocked by the conservative structure of the economy.
Conclusions
The results of this study provide a methodological basis for the development of solutions on how to properly build the mechanism of accumulation of financial resources for the purposes of green transformation of the economy. Another significant contribution of our study is the convincing, empirically based and verifiable evidence that green economy and technological modernization are two sides of the same coin. Financing investment projects that do not lead to technological modernization is not green and generally sustainable financing.
- sustainable development,
- green economy,
- technological modernization,
- investment process,
- green investments,
- green finance,
- sustainable finance,
- climate finance,
- national economy,
- industrial production
Citation: Liudmila S. Kabir, Zhanna A. Mingaleva, Ivan D. Rakov. Technological modernization of the national economy as an indicator of green finance: Data analysis on the example of Russia[J]. Green Finance, 2025, 7(1): 146-174. doi: 10.3934/GF.2025006

Related Papers:

Abstract

Background

In Russia, there is no publicly available information to analyze green finance, but companies claim significant amounts of raised funds that are labeled as green. Green finance and technological modernization are interrelated processes. Therefore, the focus of the research is to find an answer to the question: has green finance had an impact on the technological modernization of Russian industry? The goal is to find indicators that confirm the real, not imaginary, nature of green finance. The research method is based on statistical analysis with presentation of consolidated data in graphical and tabular form. Assessment of the degree of penetration of the green economy is carried out through analyzing the ongoing changes in the structure of industry.

Results

The available green finance has not had an impact on the technological modernization of the Russian industry. The creation of a new green segment of the national financial market is blocked by the conservative structure of the economy.

Conclusions

The results of this study provide a methodological basis for the development of solutions on how to properly build the mechanism of accumulation of financial resources for the purposes of green transformation of the economy. Another significant contribution of our study is the convincing, empirically based and verifiable evidence that green economy and technological modernization are two sides of the same coin. Financing investment projects that do not lead to technological modernization is not green and generally sustainable financing.

References

[1]	Agrawal R, Agrawal S, Samadhiya A, et al. (2024) Adoption of green finance and green innovation for achieving circularity: An exploratory review and future directions. Geosci Front 15: 101669. https://doi.org/10.1016/j.gsf.2023.101669 doi: 10.1016/j.gsf.2023.101669
[2]	Bouras D, Sofianopoulou S (2023) Sustainable Development Assessment of Organizations through Quantitative Modelling. Sustainability 15: 8844. https://doi.org/10.3390/su15118844 doi: 10.3390/su15118844
[3]	Candra O, Chammam A, Alvarez JRN, et al. (2023) The Impact of Renewable Energy Sources on the Sustainable Development of the Economy and Greenhouse Gas Emissions. Sustainability 15: 2104. https://doi.org/10.3390/su15032104 doi: 10.3390/su15032104
[4]	Collard F, Dellas H (2007) Technology shocks and employment. Econ J (London) 117: 1436–1459. https://doi.org/10.1111/j.1468-0297.2007.02090.x doi: 10.1111/j.1468-0297.2007.02090.x
[5]	ESCAP (2023) Bridging the gap in sustainable finance in Asia and the Pacific: principles for action. ESCAP/CMPF(4)/3. Accessed on: 08.10.2024. Available from: https://www.unescap.org/sites/default/d8files/event-documents/CMPF4-3%20Bridging%20gap%20in%20sustainable%20finance-Eng.pdf.
[6]	European Commission (2002) Commission Regulation (EC) No 29/2002 of 19 December 2001 amending Council Regulation (EEC) No 3037/90 on the statistical classification of economic activities in the European Community. Accessed on: 29.08.2024. Available from: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri = CELEX: 32002R0029.
[7]	European Commission (2008) NACE Rev. 2: Statistical classification of economic activities in the European Community. Luxembourg, Office for Official Publications of the European Communities.
[8]	Farrell KN, Beer DL (2019) Producing the ecological economy: A study in developing fiduciary principles supporting the application of flow-fund consistent investment criteria for sovereign wealth funds. Ecol Econ 165: 106391. https://doi.org/10.1016/j.ecolecon.2019.106391 doi: 10.1016/j.ecolecon.2019.106391
[9]	Fira Pro (2024) Информационно-аналитическая система FIRA PRO. Accessed on: 29.08.2024. Available from: https://pro.fira.ru/.
[10]	Fu C, Lu L, Pirabi M (2023) Advancing green finance: a review of sustainable development. Digital Econ Sust Dev 1: 20. https://doi.org/10.1007/s44265-023-00020-3 doi: 10.1007/s44265-023-00020-3
[11]	Gali J (1999) Technology, employment, and the business cycle: do technology shocks explain aggregate fluctuations? Am Econ Rev 89: 249–271. https://doi.org/10.1257/aer.89.1.249 doi: 10.1257/aer.89.1.249
[12]	Gilli M, Marin G, Mazzanti M, et al. (2017) Sustainable development and industrial development: manufacturing environmental performance, technology and consumption/production perspectives. J Environ Econ Policy 6: 183–203. https://doi.org/10.1080/21606544.2016.1249413 doi: 10.1080/21606544.2016.1249413
[13]	Glass L-M, Newig J (2019) Governance for achieving the Sustainable Development Goals: How important are participation, policy coherence, reflexivity, adaptation and democratic institutions? Earth Syst Gov 2: 100031. https://doi.org/10.1016/j.esg.2019.100031 doi: 10.1016/j.esg.2019.100031
[14]	Golova I, Sukhovey A (2019) 'Green economy'as a strategy of modernization of older industrial areas in the Urals. R-Economy 5: 168–175. https://doi.org/10.15826/recon.2019.5.4.017 doi: 10.15826/recon.2019.5.4.017
[15]	Hess P (2022) The supervision and regulation of climate risks for banks: overview from the perspective of a European practitioner. Green Financ 4: 295–309. https://doi.org/10.3934/GF.2022014 doi: 10.3934/GF.2022014
[16]	Hossin MA, Alemzero D, Abudu H, et al. (2024) Examining public private partnership investment in energy towards achieving sustainable development goal 7 for ASEAN region. Sci Rep 14: 16398. https://doi.org/10.1038/s41598-024-66800-9 doi: 10.1038/s41598-024-66800-9
[17]	INFRAGREEN (2023) ESG, Decarbonization and Green Finance of Russia 2022 (Annual Report). Moscow, Open Communications Expert Agency: 61.
[18]	Jänicke M (2004) Industrial transformation between ecological modernisation and structural change. Governance for Industrial Transformation. Proceedings of the 2003 Berlin Conference on the Human Dimensions of Global Environmental Change, Berlin, Environmental Policy Research Centre.
[19]	Kabir LS (2019) State support for «green» investments and market «green» financing: foreign experience. Innov Expertise 1: 97–108. https://doi.org/10.35264/1996-2274-2019-1-97-108 doi: 10.35264/1996-2274-2019-1-97-108
[20]	Kabir LS (2024) Tuning Climate Finance: Outcomes of СOР28. Financ J 16: 8–26. https://doi.org/10.31107/2075-1990-2024-2-8-26 doi: 10.31107/2075-1990-2024-2-8-26
[21]	Kabir LS, Rakov ID (2023) Russian Companies' Motivations for Making Green Investments. J Risk Financ Manag 16: 145. https://doi.org/10.3390/jrfm16030145 doi: 10.3390/jrfm16030145
[22]	Khalil MA, Khalil R, Khalil MK (2024) Environmental, social and governance (ESG) - augmented investments in innovation and firms' value: a fixed-effects panel regression of Asian economies. China Financ Rev Int 14: 76–102. https://doi.org/10.1108/CFRI-05-2022-0067 doi: 10.1108/CFRI-05-2022-0067
[23]	Khurshid A, Qayyum S, Calin AC, et al. (2022) The role of pricing strategies, clean technologies, and ecological regulation on the objectives of the UN 2030 Agenda. Environ Sci Pollut R 29: 31943–31956. https://doi.org/10.1007/s11356-021-18043-8 doi: 10.1007/s11356-021-18043-8
[24]	Le Blanc D (2015) Towards Integration at Last? The Sustainable Development Goals as a Network of Targets. Sustain Dev 23: 176–187. https://doi.org/10.1002/sd.1582. doi: 10.1002/sd.1582
[25]	Li M, Hamawandy NM, Wahid F, et al. (2021) Renewable energy resources investment and green finance: Evidence from China. Resour Policy 74: 102402. https://doi.org/10.1016/j.resourpol.2021.102402. doi: 10.1016/j.resourpol.2021.102402
[26]	Liu S (2023) Towards a sustainable agriculture: Achievements and challenges of Sustainable Development Goal Indicator 2.4.1. Glob Food Sec 37: 100694. https://doi.org/10.1016/j.gfs.2023.100694
[27]	Mingaleva Z, Borisova O, Markov D, et al. (2022) Digitalization and Modernization of the Industrial Production Management System Based on Lean-Green Approach, In: Antipova, T., Digital Science, Eds., Cham: Springer, 381: 48–56. https://doi.org/10.1007/978-3-030-93677-8_5.
[28]	Mingaleva ZA, Shaidurova NI, Prajová V (2018) The role of technoparks in technological upgrading of the economy. The example of agricultural production. Manage Syst Product Eng 26: 241–245. https://doi.org/10.1515/mspe-2018-0040
[29]	Mingaleva Z, Shpak N (2015) Possibilities of solar energy application in Russian cities. Therm Sci 19: S457–S466. https://doi.org/10.2298/TSCI150330087M. doi: 10.2298/TSCI150330087M
[30]	Mingaleva Z, Vukovic N, Volkova I, et al. (2020) Waste Management in Green and Smart Cities: A Case Study of Russia. Sustainability 12: 94. https://doi.org/10.3390/su12010094 doi: 10.3390/su12010094
[31]	Miralles-Quirós MM, Miralles-Quirós JL, Redondo Hernández J (2019) ESG Performance and Shareholder Value Creation in the Banking Industry: International Differences. Sustainability 11: 1404. https://doi.org/10.3390/su11051404 doi: 10.3390/su11051404
[32]	MOEX (2023) Listing Rules of Moscow Exchange PJSC (Approved by the Supervisory Board of Moscow Exchange PJSC on June 26, 2023, Minutes No. 2), Moscow Exchange PJSC: 251.
[33]	MOEX (2024) Sustainable Development Sector. Accessed on: 08.10.2024. Available from: https://www.moex.com/s3019.
[34]	Our common agenda (2024) Policy brief 6: Reforms to the international finance architecture. Accessed on: 28.08.2024. Available from: https://www.un.org/sites/un2.un.org/files/our-common-agenda-policy-brief-international-finance-architecture-en.pdf.
[35]	Pang F, Xie H (2024) The environmental externality of economic growth target pressure: evidence from China. China Financ Rev Int 14: 146172. https://doi.org/10.1108/CFRI-09-2022-0171 doi: 10.1108/CFRI-09-2022-0171
[36]	Pinskaya MR, Steshenko YA (2024) Investment tax incentives in Russia: Legislative regulation. Ars Administrandi 16(1): 172–197. https://doi.org/10.17072/2218-9173-2024-1-172-197 doi: 10.17072/2218-9173-2024-1-172-197
[37]	Rahman S, Moral IH, Hassan M, et al. (2022) A systematic review of green finance in the banking industry: perspectives from a developing country. Green Financ 4: 347–363. https://doi.org/10.3934/GF.2022017 doi: 10.3934/GF.2022017
[38]	Rosstat (2024a) Industrial production in Russia. Federal State Statistics Service (Rosstat). Accessed on: 29.08.2024. Available from: https://rosstat.gov.ru/folder/210/document/13225.
[39]	Rosstat (2024b) Labor and employment in Russia. Federal State Statistics Service (Rosstat). Accessed on: 29.08.2024. Available from: https://rosstat.gov.ru/folder/210/document/13210.
[40]	SPB Exchange (2023) Rules for the listing (delisting) of securities (minutes No. 18/2023 dated 07.12.2023), St. Petersburg Exchange: 154.
[41]	SPB Exchange (2024) Sustainable Development Instruments Segment. Accessed on: 08.10.2024. Available from: https://spbexchange.ru/listing/segments/spb_esg/.
[42]	Suhányi L, Suhányiová A, Kádárová J, et al. (2023) Relationships between Average Wages in the Manufacturing Sector and Economic Indicators of the Manufacturing Sector in the Region of Visegrad Group Countries. Sustainability 15: 4164. https://doi.org/10.3390/su15054164. doi: 10.3390/su15054164
[43]	Tang T, Yang L (2024) Shaping corporate ESG performance: role of social trust in China's capital market. China Financ Rev Int 14: 34–75. https://doi.org/10.1108/CFRI-07-2023-0187
[44]	Tolliver C, Fujii H, Keeley AR, et al. (2021) Green Innovation and Finance in Asia. Asian Econ Policy R 16: 67–87. https://doi.org/10.1111/aepr.12320. doi: 10.1111/aepr.12320
[45]	UN Resolution A/RES/70/1 (2015) Transforming our world: the 2030 Agenda for Sustainable Development. United Nations. Accessed on: 28.08.2024. Available from: https://sdgs.un.org/2030agenda.
[46]	UN TFM (2015) UN Technology Facilitation Mechanism (TFM). United Nations. Accessed on: 28.08.2024. Available from: https://sdgs.un.org/tfm.
[47]	Varkey RS, Joy J, Sarmah G, et al. (2021) Socioeconomic determinants of COVID-19 in Asian countries: An empirical analysis. J Public Aff 21: e2532. https://doi.org/10.1002/pa.2532 doi: 10.1002/pa.2532
[48]	VEB.RF (2023) Regulations on interaction of participants in the system of quality assessment and certification of infrastructure projects "Impact and Responsible Investing for Infrastructure Sustainability". Accessed on: 08.10.2024. Available from: https://вэб.рф/files/?file = 76facbba1d937d329047217a6b5a2368.pdf.
[49]	VEB.RF (2024a) National competence center for ESG finance. Accessed on: 08.10.2024. Available from: https://вэб.рф/en/sustainable-development/green-finance/national-competence-center/index.php?tabs = methodology.
[50]	VEB.RF (2024b) Verifiers and issued financial instruments. Accessed on: 08.10.2024, Available from: https://вэб.рф/en/sustainable-development/green-finance/national-competence-center/index.php?tabs = verifiers_and_bond_issues.
[51]	VEB.RF (2024c) Issues of financial instruments for sustainable development. Accessed on: 08.10.2024. Available from: https://вэб.рф/ustojchivoe-razvitie/zeljonoe-finansirovanie/vypuski-finansovykh-instrumentov/.
[52]	VEB.RF (2024d) Methodology. Accessed on: 08.10.2024. Available from: https://вэб.рф/ustojchivoe-razvitie/zeljonoe-finansirovanie/metodologiya/.
[53]	VEB.RF (2024e) National competence center for ESG finance. Accessed on: 08.10.2024. Available from: https://вэб.рф/en/sustainable-development/green-finance/national-competence-center/?tabs = methodology.
[54]	WCED (1987) Report of the World Commission on Environment and Development: Our Common Future, WCED: 300. Available from: https://sustainabledevelopment.un.org/content/documents/5987our-common-future.pdf.
[55]	Yakovlev IA, Glukhov VA (2023) Consideration of ESG factors in investors' activities: Experience of individual countries. Econ Manage 29: 891–901. https://doi.org/10.35854/1998-1627-2023-8-891-901. doi: 10.35854/1998-1627-2023-8-891-901
[56]	Yakovlev IA, Kabir LS, Nikulina SI (2022) The national strategy for financing the energy transition: assessing opportunities and finding solution. Financial J 14: 9–24. https://doi.org/10.31107/2075-1990-2022-5-9-24 doi: 10.31107/2075-1990-2022-5-9-24
[57]	Yakovlev IA, Kabir LS, Nikulina SI, et al. (2020) The Impact of the Sustainable Development Agenda on the Transformation of National Policies of Commodity Producing Countries. Ekonomika regiona[Economy of region] 16. https://doi.org/10.17059/ekon.reg.2020-3-14 doi: 10.17059/ekon.reg.2020-3-14

Reader Comments

Your name:*

Email:*
© 2025 the Author(s), licensee AIMS Press. This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0)