Abstract
The transition to sustainable development highlights the role of green innovation, with budget subsidies serving as a key incentive. A study based on a 2024 report from the Irkutsk Region Ministry of Natural Resources shows that the regional practice of budget subsidizing environmental projects is primarily infrastructural and compensatory, rather than innovative. Funds are directed toward damage control rather than breakthrough technologies. Identified problems include formal performance assessment, a lack of environmental KPIs, and low business engagement. Subsidies potential fulfillment requires targeted programs, a reform of the assessment system with qualitative indicators, and differentiated support measures for industrial enterprises.