The Main Directions of Financing “Green” Projects in the Concept of Sustainable Economic Development

The article reflects a current topic related to sustainable development - the development of green finance. The article is devoted to the analysis of the development of the “green” financing system, responsible investment projects and assessment of the current level of their development. Green bonds are a variety of debt instruments whose proceeds are used to finance or refinance existing or new green projects. The article presents the stages of development of the green bond market, characterizes the participants in this area and highlights voluntary standards for green bonds that must be used when issuing them. The main objectives of green finance are to internalize environmental externalities and reduce risk perception, promoting investments that provide environmental benefits. The author examined the advantages and structure of green bonds for the purpose of using proceeds, identified the prerequisites for the development of green finance: creating a favorable environment, maintaining a business climate, providing banking regulators with powers to supervise environmental risks of the financial sector, as well as the rule of law and investment regime that support the increase green investment activities. The main directions of “green” investment are considered in accordance with the sustainable development goals developed by the UN, and promising scenarios for the transition of the world economy to environmental (“green”) business. The main instruments and levers of support for private investors for financing “green” projects related to government regulation measures, public financing, lending and risk reduction are explored.