How the EU Taxonomy Will Help Ukraine Attract Green Financing
The Office of Green Transition at the Ministry of Economy of Ukraine has prepared an "Applied Guide on Using the EU Taxonomy for Attracting Sustainable Financing," which reveals opportunities for using European environmentally sustainable activity criteria to attract investments.
The EU Taxonomy is a classification system that establishes a list of environmentally sustainable economic activities and criteria for them to provide guidelines for investment. The implementation of this tool in Ukraine will help direct capital to projects that contribute to environmental and climate goals, which is especially important in the context of reconstruction and European integration.
Dmytro Sych, senior expert on green transition at DIXI Group and green financing expert at the Office of Green Transition at the Ministry of Economy of Ukraine, emphasizes: "The EU Taxonomy can become one of the key tools for sustainable post-war economic recovery of Ukraine. Often, the requirements for external financial assistance from partners include the targeted use of funds for projects that contribute to sustainable development."
Green financing is viewed as an additional source of resources for Ukraine. However, attracting it requires significant capabilities from project owners due to the diversity of requirements from financial organizations and donors.
According to the guide, applying the EU Taxonomy creates additional opportunities to expand access to targeted financing, particularly funds from international financial organizations and donors focused on supporting environmentally sustainable initiatives.
The implementation of the EU Taxonomy will allow for the creation of a nationally defined classification system for sustainable investments, harmonizing various policies and donor requirements. This will help present investment projects at different stages of their lifecycle as compliant with climate and environmental sustainability principles.
Using the provisions of the EU Taxonomy in the early stages of planning and developing projects will allow for the submission of higher quality funding applications, and will also contribute to ensuring Ukraine's long-term sustainable development.
The full text of the study "Applied Guide on Using the EU Taxonomy for Attracting Sustainable Financing" can be viewed via the link.
This document was prepared by the Office of Green Transition at the Ministry of Economy of Ukraine with the support of the International Renaissance Foundation within the project "Support for the decarbonization of Ukraine's economy through the development of new financing models using debt obligations. Stage 5".
The content of this document is the responsibility of NGO "DIXI GROUP" and under no circumstances can be considered to reflect the position of the International Renaissance Foundation.
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