Today’s Mechanisms of Financing the 4th Energy-Transition

Author:

Altukhova E. V.1

Affiliation:

1. Financial University under the Government of the Russian Federation

Abstract

   Today global community focuses on stepping-up efforts aimed at cutting emissions of green-house gases to the atmosphere. It is connected with active realization of the 4th energy-transition strategy based on replacement of one power sources by others that are more efficient and ecologically clean. Current trends of sustainable development define priorities and new approaches to sources and forms of financing. Serious impact on selection of finance mechanisms is made by sectoral specific features demonstrating key lines of development. The article studies accessible efficient finance tools, which can provide a new format of interaction with regard to principles of power system functioning. As auxiliary resources fostering finance priority identification the author put forward ESG-accounting and ESG-ratings. European experience of using mechanisms of financing energy-effective projects can be interesting. The author formulated principles of the 4th energy-transition, showed key lines in the 4th energy-transition financing with regard to coordination of economic interests of process participants and highlighted the most important sources of financing. It is recommended to prioritize the development of technological competences oriented to home market.

Publisher

Plekhanov Russian University of Economics (PRUE)

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