Photo by: BraunS / iStock
Managing climate risks requires investment. In the case of physical risks (as in the Arctic, where the destruction of permafrost threatens the normal operation of transport and industry), funds are needed to make the region’s infrastructure more resilient to climate change.
In addition, significant money is needed to upgrade and build new production facilities to the latest environmental standards as part of the so-called ‘green transition’ (a global trend towards stricter environmental performance requirements for products).
One tool for attracting investment is sustainable financing. It is used to create environmentally advanced facilities that produce products that are in demand on international markets.
For example, VEB.RF is financing the construction of the Ekolant plant in the Nizhny Novgorod region, where “green” steel will be produced. There they plan to apply the latest scientific technologies in the field of “green” metallurgy, which will reduce CO2 emissions by about three times compared to the traditional blast-furnace technology for steel production. This effect is achieved, among other things, through the use of “direct reduction of iron” technology.
Cover photo: horstgerlach / iStock
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