Moscow green bonds are recognized as meeting green finance standards

The credit rating agency Expert RA has once again recognized the capital’s green bonds as complying with the principles of green bonds and the criteria of a green financial instrument, said Deputy Mayor of Moscow, Head of the Department of Economic Policy and City Development Maria Bagreeva.

Every year, the rating agency issues independent opinions on the compliance of bond issues with green finance principles.

“The conclusions prepared this year are based on a report on the use of funds from the placement of green bonds for 2023, which was approved by Moscow Mayor Sergei Sobyanin. Two issues of Moscow bonds are recognized as green: the 74th issue in the amount of 70 billion rubles, which was placed in 2021, and the first issue of Moscow bonds for the population in the amount of 2 billion rubles, which was sold last year,” said Maria Bagreeva.

Obtaining independent opinions ensures that Moscow green bonds remain in the list of issues of financial instruments for sustainable development, which, on behalf of the Russian government, is maintained by the state corporation VEB.RF. In addition, in conclusion, in relation to the 74th bond issue, it provides the right to trade in the sustainable development sector of the Moscow Exchange.

Funds from the sale of issues are aimed at priority projects of the metropolis, which ensure the reduction of emissions of pollutants and greenhouse gases from vehicles.

Through the sale of bonds for the population, 51 Russian-made electric buses were purchased last year. Of the 70 billion rubles received from the placement of the 74th issue, almost 60 million rubles were spent on the construction and reconstruction of 21 stations and 48 km of tracks on the Big Circle Metro Line. Also, about 400 domestically produced electric buses were purchased for another 10.2 billion rubles.

“Investors in green bonds have access to complete information about the expenditure of funds, the implementation of green projects in the city and the effects achieved. In total, the projects ensure a reduction in pollutant emissions from personal and public vehicles by almost a thousand tons annually, and a reduction in carbon dioxide emissions by 42 thousand tons,” concluded Maria Bagreeva.

The achieved environmental effect corresponds to the planned values ​​of the Moscow green bond concept.