Integration of Climate and Environmental Aspects into the Public Investment Management (PIM) System
The Public Investment Management (PIM) system in Ukraine is undergoing active transformation. Therefore, the Ministry of Economy, Environment and Agriculture of Ukraine requires open dialogue, exchange of views and experience, collaborative search for solutions, and formation of a shared vision for the future of this system.
As part of this work, a seminar was held dedicated to practical aspects of implementing the PIM reform. Over 300 participants, including representatives of central executive bodies, state-owned enterprises and institutions, as well as initiators of public investment projects, discussed key aspects of applying the methodological framework, particularly the update of the PIM regulatory framework, climate and environmental aspects of preparing economic justification for public investment projects, as well as practical issues of using the DREAM platform.
Andrii Kitura, Development Director at DiXi Group and Head of the Green Transition Office at the Ministry of Economy, Environment and Agriculture of Ukraine, outlined the current state of the PIM reform, the update of the methodological framework, and next steps of the reform, particularly regarding strengthening the capacity of investment project initiators.
"One of the key tasks of the Ministry of Economy within the PIM reform framework is to develop a methodological basis for transforming this sphere. Our common goal is to build a coherent, transparent and effective investment management system at all levels. No methodology or system will be effective without coordinated interaction among all process participants, especially in such a complex area as public investment management," emphasized Andrii Kitura.
The prerequisites for updating the public investment management system include the absence of strategic planning, which leads to the dispersion of limited resources, fragmentation of project preparation, evaluation and selection procedures, weak institutional capacity of authorities, as well as insufficient management of public assets.
The target model of the system envisages prioritization of resources for society's most important needs, financial sustainability of investments, efficiency and effectiveness in choosing implementation mechanisms, timely synchronization of decisions with the budget process, environmental sustainability, inclusiveness and accessibility, transparency of decision-making processes, and accountability for project implementation.
General Manager for Green Finance at DiXi Group NGO and the Green Transition Office – Dmytro Sych, provided detailed insights into climate and environmental aspects of preparing public investment projects. The expert explained that incorporating these aspects into public investments has several important grounds: reducing operational and regulatory risks, compliance with national and international strategic goals, particularly EU integration, access to funding sources from leading international financial institutions, as well as ensuring a sustainable business model for investment projects.
The Green Transition Office team presented participants with approaches to considering climate and environment, based on best international practices, particularly the EU Taxonomy. Together with attendees, the speakers examined in detail the legal and regulatory foundations, methodological basis, and practical examples of incorporating climate and environmental aspects at different stages of maturity of public investment projects.
Seminar participants actively discussed practical challenges of implementing climate and environmental requirements in the process of preparing public investment projects. Experts emphasized the importance of creating space for constructive discussion, exchange of experience, and discussion of needs and challenges. The Green Transition Office team expressed sincere gratitude to all participants and partners for the opportunity for such exchange of experience and emphasized the importance of continuing the dialogue for successful implementation of the PIM reform with consideration of climate and environmental aspects.
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