Jump to ContentJump to Main Navigation
Show Summary Details
In This Section

Baltic Journal of Real Estate Economics and Construction Management

1 Issue per year

Open Access
Online
ISSN
2255-9671
See all formats and pricing
In This Section

Impact Investment of Project Financing: Opportunity for Banks to Participate in Supporting Green Economy

Khaliun Ganbat
  • Plekhanov Russian University of Economics, Mongolia
/ Inessa Popova
  • Corresponding author
  • Plekhanov Russian University of Economics, Russian Federation
  • Email:
/ Ivan Potravnyy
  • Plekhanov Russian University of Economics, Russian Federation
Published Online: 2016-12-13 | DOI: https://doi.org/10.1515/bjreecm-2016-0006

Abstract

The article analyses impact investment of project financing. Companies’ own funds, own funds of the consortium members, the company’s own resources and budget funding, own funds of the company on the basis of a production sharing agreement, borrowed funds; the funds raised by the bond issue are all considered as the project financing sources in the natural resource field. The purpose of this article is to consider various opportunities to support environmentally oriented projects in the framework of project financing, including through attracting funds of banks for the development of “green” economy. The role of banks and the banking sector in supporting environmentally and socially oriented projects is analysed. The experience of banks in Asia, Europe and the United States in terms of “green” economy projects is shown. Moreover, environmental and social risks, and impact of a project, the project compliance with the norms and standards of responsible finance are all considered in this article.

Classification of environmental projects with the purpose of project financing is proposed, and also the scheme of interaction between stakeholders is shown, including banks, in the implementation of projects reducing greenhouse gas emissions. Furthermore, impact investment in financing projects with the participation of banking sector is analysed and justified on the example of such countries as Mongolia, Russia, Japan, the United States and others. Evaluation procedures and the selection of projects for social investment purposes are shown in the article, including the measures of supporting banks for the project implementation in the field of “green” economy. The following research methods are considered: systematic analysis, environmental economic analysis environmental auditing, statistical methods for evaluating the costs and benefits from implementing environmentally oriented projects, methods of assessment of damage from environmental pollution, etc.

Keywords: Bank participation; environmental economics; “green” economy; impact investment

References

  • Akchurina, N. M. (2008). The environmental and social factors in the Bank. Economics of nature management, 3, 55-68.

  • Asian Development Bank. (2014). Impact Investors in Asia: Characteristics and preferences for investing in Social Enterprises in Asia and the Pacific.

  • Bayandina, V. A., & Voronin, D. M. (2015). Methods of analysis of investment projects for the purposes of the Bank project financing. Perm University Bulletin, 1(16), 57-63.

  • Gengut, I., Alnykina, E., Davaakhuu, N., & Potravnyy, I. (2015). Management of Environment Cost in the Project: the Experience of Russia and Mongolia. Baltic Journal of Real Estate Economics and Construction Management, 3, 140-150. http://dx.doi.org/10.1515/bjreecm-2015-0014 [Crossref]

  • Global Reporting Initiative. (2000). Sustainability Repointing Guidelines on Economic, Environmental and Social Performance. Boston.

  • Nikulina, A. Yu. (2016). Evaluation and Selection of investment solution for oil and gas development in the Arctic. Arctic: Ecology and Economy. Research and Information-Analytical Magazine, 2(22), 51-55.

  • Potravnyy, I. M., Gassiy, V. V., Chernogradsky, V. N., & Postnikov A. V. (2016). Social responsibility of mining companies in the territory of traditional nature management as a basis for partnership between the government, business and indigenous peoples of the North. Arctic: Ecology and Economy. Research and Information-Analytical Magazine, 2(22), 56-63.

  • Schierenbeck, H., & Seidel, E. (Eds.). (2000). Banken und Oekologie. Konzepte fuer die Umwelt. Frankfurt-am-Main: Gabler. 136 p.

  • Schmidt, F. P. (1999). Aspekte oekologischer Risiken im genossenschaftlicher Bankgesellschaft. Umweltwirtschaftsforum, 3, 27-29.

  • Silva, C. V. (1999). Umweltorientierung in der Sparkassenorganisation. Umweltwirtschaftsforum, 3, 50-54.

  • United Nations. (2011a). UNEP Finance Initiative: Positive Impact Manifesto. Retrieved from United Nations website http://www.unepfi.org/publications/

  • United Nations. (2011b). UNEP FI Guide to Banking & Sustainability. Retrieved from United Nations website: http://www.unepfi.org/fileadmin/documents/guide_banking_statements.pdf

  • Viehohh, V., & Theis, S. (Eds.). (1997). Die Macht der Banken / Ein Beitrag der Oekobank. Frankfurt-am-Main: Oekobank. 12 p.

  • Zaya, S. (2014). Government progress in green development. Mongolian Economy, 12, 9-12.

About the article

Published Online: 2016-12-13

Published in Print: 2016-11-01



Citation Information: Baltic Journal of Real Estate Economics and Construction Management, ISSN (Online) 2255-9671, DOI: https://doi.org/10.1515/bjreecm-2016-0006. Export Citation

© 2016. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License. (CC BY-NC-ND 4.0)

Comments (0)

Please log in or register to comment.
Log in