The Possibilities of Using Sustainable Banking Products to Address Environmental Issues and the Impact of ESG Risks (Using the Example of the Volga River)

The article discusses the possibilities of solving environmental problems of pollution of the main waterway of the European part of Russia, which necessitated the search for effective financing mechanisms for environmental projects aimed at reducing anthropogenic impact on the ecosystem of the river, where the use of sustainable environmental banking products will reduce the severity of financing projects aimed at reducing pollution of the Volga River. The article analyzes legislative and regulatory acts, as well as the positive and negative practice of financing projects within the framework of the Federal project "Improving the Volga River". Recommendations on attracting green bank loans as an alternative to government support are proposed. The author has studied and proposed options for currently available green banking products. The article discusses the author's recommendations on options for attracting green bank loans to solve this problem, including the risk of penalties for enterprises, the amount of which can lead to fines of up to 5% of the company's revenue. Green bonds and other investment instruments can be used to finance the construction or renovation of wastewater treatment plants, including the issuance of green bonds by regional governments. Special attention is paid to the role of government support, the interaction of the banking sector and industrial enterprises, reducing the impact of ESG risks, as well as the prospects for the development of ESG banking in Russia.