State financial regulation of renewable energy development

. The article considers financial incentives for the development and application of renewable energy technologies. The authors argue that state support is necessary to make renewable energy competitive with non-renewable energy. The state financial regulation of renewable energy is fixed by corresponding programme documents. Green bonds, block grants, reduced rates of customs duties, subsidies and preferential lending can be used as instruments of financial stimulation in different countries. The article points out the remaining obstacles and barriers that limit the wide application of renewable energy.


Introduction
In today's world, the development of renewable energy (RE) technologies has become a priority for many nations as the world moves towards more sustainable, environmentally friendly and affordable forms of energy production.The use of these technologies is vital to achieving global climate goals.The current global energy landscape is largely characterised by the dominance of non-renewable energy such as coal, oil and natural gas.However, worries about climate change for the worse and the finite nature of these resources have led to a growing interest in RE technologies such as wind, solar, hydropower, geothermal and biomass.RE technologies will help to reduce carbon emissions and mitigate the negative effects of climate change [1].But their deployment requires significant investments in research, development, infrastructure and human capital.Not only legal but also financial regulatory mechanisms are required to encourage the deployment of RE technologies.Governments can provide incentives such as -tax breaks, budget subsidies, feed-in tariffs to encourage investment in RE projects.International organisations can also provide financial assistance and technical support to developing countries to help them switch to green sources.The global transition to a green economy is still in the early stages of development, but the prospects for a more sustainable and secure energy future look promising.Let's take a look at what financial incentives governments are using to promote RE-based green energy.

Materials and methods
Tax incentives are one of the main tools that governments use to support RE companies.They may include tax credits, reduced tax rates, exemptions from certain tax liabilities or credits for R&D and development of new technologies.For example, in the US, there is the Renewable Energy Investment Tax Credit, which allows companies to receive a tax credit of up to 30 per cent of construction and installation costs.In China, tax incentives include tax breaks for companies producing renewable energy equipment and subsidies for exporting such equipment.Tax incentives help to reduce financial risks for companies and accelerate investment in new technologies and developments.
Budget subsidies for RE production are also used.According to the International Renewable Energy Agency (IRENA), in 2020, out of all subsidies to the energy sector worth about $634 billion, about 20% went to the production of green energy, 6% -to biofuels and a little more than 3% -to nuclear energy [2].In Russia, the total amount of state support for RE projects up to 2035 should amount to 360 billion rubles.It should be noted the importance of grants for research and development of RE.In the US, for example, The Energy Efficiency and Conservation Block Grant (EECBG) Programme provides $550 billion in block grants to universities, research centres and companies developing new types of RE.In the US, taxpayers can also receive tax credits for the purchase of solar panels or wind turbines, as well as subsidies for the installation of such equipment in homes and businesses ($8.8 billion).In addition, many governments are investing in the construction of solar and wind power plants, as well as in the development of hydropower and geothermal sources [4].In 2020, more than 72 gigawatts of solar and wind capacity was built in China thanks to government investment, while in India, the government allocated $4.3 billion for RE [5].In Russia, there are also state programmes to support RE, for example, the Energy Strategy of Russia for the period until 2030 includes measures to create a highly localised renewable energy industry to achieve decarbonisation goals in the fuel and energy complex, under which significant budget financing is planned.
To support RE, different countries also apply customs and tariff incentives reduced duty rates on imports and exports of equipment, materials and components for renewable energy production.For example, in the European Union, tax incentives and subsidies for renewable energy companies can be combined with reduced duty rates for import and export of renewable energy technologies and equipment [6].
In Russia, redundant requirements for the process of design, construction and operation of RE generation facilities have been eliminated to encourage RE utilisation and increase the investment attractiveness of RE generation projects.
In the US, there are various federal and state programmes that provide investment and tax incentives for renewable energy companies.For example, the Investing in Energy Efficient Technologies (Investment Tax Credit) programme allows companies to receive a 30% tax credit on the cost of installed solar and wind energy equipment.China, on the other hand, reduced customs duties on imports of equipment for solar panels and wind turbines to 0% in 2019, while for conventional technologies the tax rates are 2-6%.
Preferential lending is an important instrument for financing renewable energy.Thus, in 2020, the volume of financing of RE-based technologies in the Russian Federation totalled more than 300 billion roubles, including more than 200 billion roubles in loans.The Federal Target Programme "Development of Renewable Energy for 2019-2024" provides for the allocation of 50 billion rubles for lending to RE projects.
The advantages of lending include the possibility of obtaining large amounts of financing, low interest rates, long loan terms and flexibility of terms.Limitations of preferential lending may include high requirements to the borrower, the need for collateral and guarantee obligations, and high risks for banks due to instability of legislation and possible economic risks.
Green bonds, a special type of bond issued by companies and governments to finance projects aimed at combating climate change and supporting clean technologies, including renewable energy, are sometimes used as support measures.One of the advantages of green bonds is that they can attract large amounts of investment in RE projects.The first green bonds (Green Bonds) were issued by the International Bank for Reconstruction and Development (IBRD) back in 2008.In 2013, their global issuance totalled $11 billion, and in 2015 it was already around $42 billion.In 2021, the volume of Green Bonds issued globally totalled $509 billion .The volume of Green Bonds issued by Russian issuers for 2023 is $4,669,713,920.04.A limitation of green bonds may be that their issuance and sale are subject to certain requirements for environmental responsibility and transparency in the use of funds.Also, the size of the green bond market is still far behind the conventional bond market.
An evaluation of the effectiveness of financial incentives for RE technology development shows that they can contribute significantly to its growth, but also have their limitations and drawbacks.Tax incentives can reduce the financial burden on firms and accelerate technology adoption, but may be ineffective if not supported by other measures.Budget incentives and feed-in tariffs can be effective, but can be a burden on the state budget and lead to higher electricity prices for end-users.Lending and the use of green bonds can also be useful, but require proper management and risk assessment.Overall, a combination of different financial incentives may be the most effective approach for RE development.

Results
RE technologies have become a cornerstone of the green economy, providing numerous economic, environmental and social benefits.
1. Economic benefits.Renewable energy technologies offer significant economic benefits including job creation, economic growth and energy security.According to the International Renewable Energy Agency (IRENA), the sector created 11.6 million jobs globally in 2019.Investments in this area can also stimulate economic growth and create new business opportunities.Moreover, projects in this area can reduce dependence on imported fossil fuels and increase energy security.
2. Environmental benefits.RE technologies create significant environmental benefits, including helping to reduce greenhouse gas emissions, air pollution and water consumption.RE does not emit carbon dioxide or other harmful pollutants, making it a critical tool for combating climate change.In addition, technologies can reduce air pollution and improve public health by reducing dangerous emissions from burning fossil fuels.Finally, such technologies can also reduce water consumption, which is critical in regions with limited water resources.
3. Social impact."Green" sources can also provide significant social benefits that include improved energy access, increased energy equity and community resilience.RE technologies can provide access to electricity to communities that are not connected to the grid or have limited access to electricity.They can also promote "energy equity" by providing affordable energy to low-income households, improve societal well-being through reliable and sustainable energy solutions that are less vulnerable to natural disasters and other volatile situations.
According to Barron's, a leading global investment publication, in 2022, global investment in RE exceeds investment in oil and gas projects for the first time in history -$494 billion versus $446 billion [9].At the same time, oil companies are also preparing for the transition to "green" energy.Thanks to deals made in the last year alone, companies such as BP, Shell, Exxon and Chevron are building offshore wind farms and preparing to produce fuel from plants, rubbish and cooking fat.This gives them confidence that they can become more environmentally friendly without sacrificing profits.

Discussion
While green technologies create significant economic, environmental and social benefits, there are also a number of challenges and constraints to their widespread adoption.
1. barriers to technology adoption.One of the significant barriers to adoption is the high initial cost of installation and maintenance of equipment.The initial cost of RE technologies is higher than that of conventional fossil fuel-based technologies, making them less attractive to investors.Moreover, the lack of financial incentives and subsidies can also limit technology deployment.Another obstacle is the "intermittent" nature of some types of RE, which depend on meteorological conditions and are less reliable than conventional technologies.This can make RE-based systems less efficient and stable.
2. Technology limitations.RE also faces a number of technological challenges that limit its widespread adoption.For example, energy storage technology is not advanced enough to provide storage for large amounts of energy generated from green sources.This limitation means that the technologies cannot provide reliable energy supply in the absence of solar or wind.Physical limitations are another problem.Wind turbines and solar panels require a large plot of land to produce significant amounts of energy, which limits their installation in densely populated areas.
3. Political and economic barriers.Political and economic barriers can also limit development.Some politicians may resist implementation either for ideological reasons or because of the influence of the fossil fuel industry.In addition, existing energy infrastructure, regulations and policies may favour traditional fossil fuel-based technologies, making it difficult for renewable energy technologies to compete .In addition, some countries may lack the necessary infrastructure and technical expertise for development and deployment.The high cost of technology can also be a major obstacle for developing countries.The number of policy commitments on climate change increased in 2021.As countries have announced their commitments and targets for zero emissions, the growing focus on decarbonisation has become an increasingly important factor in policies to support renewable sources.By the end of 2021, at least 135 countries around the world, as well as the EU, have set some form of zero-emission target covering almost 85% of the world's population, but not all of these jurisdictions have economy-wide targets [9].Energy and climate policy measures have intensified at the city level.
By the end of 2021, about 1,500 cities had renewable energy targets and/or policies, collectively covering more than 1.3 billion people, or 30% of the world's urban population [10].In line with global trends, the number of zero-emission announcements increased dramatically, with more than 1,100 cities having targets by the end of the year.However, implementation is lagging behind as many measures are either still under discussion or have not been updated, highlighting the urgent need for global plans and the expansion of RE.

Conclusions
Global policies and financing mechanisms play a crucial role in catalysing developments towards a green energy pathway.Adopting new ways to meet climate goals is vital to mitigate climate change, reduce air pollution and promote sustainable economic growth.International relations provide a framework for countries to work together to address climate change.Various agreements aim to limit global warming to a certain level, and to reduce the harmful and dangerous effects of fuel extraction on our planet.These agreements encourage countries to develop and implement new technologies that will allow for a rapid transition away from fossil fuels and towards green sources.Financial incentives that help reduce upfront costs and provide stable cash flows encourage investors to develop and deploy innovations.
It is important for public authorities to continue to support these technologies by not only removing regulatory barriers, but also by removing subsidies for fossil fuel extraction and production.In this way, states can create a level playing field for green energy technologies, allowing them to compete with conventional technologies.
In conclusion, the development and deployment of RE is vital for climate change mitigation, pollution reduction and economic development.Utilising solar, wind, hydro and other green energy sources helps to reduce greenhouse gas emissions and improve air, water and soil quality.

Table 1 .
Review of current government programmes of RE of The U.S. Department of Energy (DOE).

Table 2 .
Volume of Russian Green Bonds in circulation.