Ukraine Enhances its Public Investment System: The Green Transition Office Helps Integrate Climate Criteria
On February 28, the Cabinet of Ministers of Ukraine approved the resolution "Certain Issues of Public Investment Management," which regulates the implementation of Public Investment Management (PIM) reform at the national, regional, and local levels.
"The main goal of the PIM reform is to create a transparent, accountable, and effective system for attracting investments into strategic sectors of the economy for recovery. This year's Unified Project Portfolio based on DREAM contains 787 projects, the highest priority of which will be financed from the state budget. The rest can be refined and updated to gain more chances for funding," said First Deputy Minister of Economy of Ukraine Oleksiy Sobolev.
According to him, the Government approved a step-by-step instruction that will standardize approaches to planning, forming, and evaluating public investment projects. This will ensure clear resource allocation, effective use of budget funds, and attraction of investments into projects that will meet nationally defined goals.
Experts from the Green Transition Office, who worked on implementing climate criteria in the project evaluation system, contributed to the development of the document.
"These changes will allow prioritization of public projects, considering climate and environmental aspects as one of many evaluation parameters," comments Dmytro Sych, senior expert on green transition from NGO DiXi Group and expert on green financing at the Green Transition Office under the Ministry of Economy of Ukraine.
The document provides for the approval of procedures for developing a medium-term plan for priority public investments, forming the Unified Project Portfolio, as well as preparing, evaluating, and implementing public investment projects.
The procedures are based on the best global practices, particularly The UK 5 Case Model and recommendations from the Tony Blair Institute and the European Investment Bank's JASPERS advisory program.
It is worth noting that the approval of the methodological framework underlying the PIM process is one of the International Monetary Fund's structural benchmarks that Ukraine must meet in 2025.
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