Impact investing is the future of the economy

4 february 2015

Within the conference "Industrial policy of the regions: stability, import substitution, new reserves of development" a meeting of the Working Group on impact investing took place.

The working group discussed the experience and mechanisms for the implementation of communal projects.

Sergey Chernyshev, the Coordinator of the Working Group on impact investing, spoke about the impact investment. "This type of investment has started to develop in the West since 2007 and today is widely used around the world except for our country, unfortunately". The laboratory of institutional design engineering (IDE) is the first organization in Russia dedicated to the study and development in this field, noted the expert. "We believe that this investment technology can contribute to economic growth of this country. One of our projects is the IDE standard, which aims to increase the number of entrepreneurial projects and can be used for development of the impact investing project and is associated with the standards with which GIIN works", said Mr. Chernyshev.

The IDE experts presented a model project of impact investment in the housing infrastructure. They have calculated costs for the construction of the boiler and its operating costs at the current rate using the example of Nadezhdino of Omsk region. Experts have shown how to build 40 boilers with an acceptable volume and timing of impact investments using institutional design engineering tools, technologies and standards.

Some experts do not agree with ideas of IDE. "The private investor in its pure form will never come into the housing infrastructure" because this industry is the sphere of the state and social responsibility, according to experts. Some partial projects may have this form, but this practice won't be mass, because it's impossible to optimize all the participants, they consider. Other experts believe that the project needs to be the standard, and a dialogue between energy experts and IDE is required.

"We discussed applications of impact investment for the various sectors of the economy", said the Expert of the Analytical Center Evgeny Gasho summing up the meeting of the Working Group. "And despite the fact that these technologies seem to be stratospheric, they are quite practical. This is confirmed by the example given on the application of these technologies in the modernization of communal power system of cities". The expert noted that the Analytical Center will collaborate with experts in this sphere, as well as assist them in the creation and promotion of relevant documents.