Russia's government has approved the legal framework under the Kyoto Protocol designed to reduce carbon emissions.

Russia's Economic Development and Trade Ministry, in co-operation with the World Bank, has started a study on a Green Investment Scheme, which will look at investment in energy efficiency and ecological projects.

The study has been supported by the Japanese government with a grant of $US 725 000.

The Economic Development and Trade Ministry expects the first applications for projects in February this year and says Russian business is taking active interest in the scheme.

“We expect signals from the institutional banks of Russia, commercial banks and investment community which first of all operates on the stock market: Gazprombank, I expect that Sberbank of Russia will also participate in this process. In principle, we have a certain sum that could be capitalized above estimation of ?1-2 billion,” Vsevolod Gavrilov from Economic Development and Trade Ministry.