Prospects of International Cooperation in the Arctic Under the Russian Chairmanship of the Arctic Council in 2021–2023: Social Projects and ESG Financing

Abstract

The article examines the issue of ensuring the well-being of indigenous peoples as well as local communities living in the Arctic in order to form a set of recommendations applicable to the Russian Chairmanship of the Arctic Council. This area of international cooperation is within the scope of the Russian Federation's Chairmanship of the Arctic Council in 2021–2023, is closely related to sustainable financing in the Arctic, and is highlighted by Russia as a priority. In the study, the following methodology is used: statistical analysis, economic forecasting, statistical and comparative analysis of annual reports of energy companies, and national and international statistical databases.

Based on the analysis conducted, the authors propose the following recommendations on the considered priority area of the Russian Chairmanship in the Arctic Council:

• 1. To consider in more detail, the social factors when evaluating industrial and technological projects in the Arctic—along with the issues of ecology and carbon footprint;

• 2. To develop human capital in the Arctic, including opportunities for digitalization and integration of knowledge and skills of indigenous peoples;

• 3. To develop institutions for sustainable financing in the Arctic—starting from the formation of a separate taxonomy of ESG factors, in consideration of peculiarities of the Arctic region.