Green Finance for Ukraine's Recovery: Challenges and Prospects
At the International Conference “Responsible Business Conduct for the Recovery of Ukraine: A Path to Sustainable Investments and European Integration”, Dmytro Sych, Green Finance Manager at the Green Transition Office under the Ministry of Economy, Environment and Agriculture of Ukraine, participated in a panel discussion dedicated to the role of green finance in the country's responsible recovery.
The discussion explored how integrating sustainable development principles and environmental responsibility into financial mechanisms can facilitate international investment and ensure compliance with European standards. Special attention was paid to practical aspects of implementing green finance in infrastructure and economic recovery projects in Ukraine in the context of its European integration aspirations.
Dmytro Sych noted that the Ukrainian government is systematically working on developing green finance, but significant work remains ahead.
"Key stakeholders have already understood that green finance as a whole can become a necessary element of financing economic recovery, but substantial work must be done to fully activate this instrument for attracting external financing," the expert emphasized.
Among the positive developments, the speaker highlighted the active work of state regulators. The National Bank of Ukraine presented a White Paper on managing environmental, social and governance (ESG) risks in the financial sector. The National Securities and Stock Market Commission developed a Sustainable Finance Roadmap for 2025-2030. The Ministry of Economy incorporated relevant provisions into the Small and Medium Business Development Strategy.
Ukraine's international partners pay significant attention to green finance. Specifically, within the Ukraine Facility framework, 20% of funds are directed to green projects with strict adherence to the "do no significant harm" (DNSH) principle. International financial organizations have quite ambitious portfolio targets for decarbonization, climate change adaptation and environmental protection financing. Large enterprises have already learned to work with them quite effectively.
"We want the inflow of investments and financing not to decrease, and for this we need to work seriously within our state," Dmytro Sych emphasized.
He outlined three key directions: the public sector must introduce appropriate procedures for preparing and prioritizing investment projects, the financial sector must align its rules with international goals and standards, and the private sector must understand the fundamentals of ESG principles at the small and medium business level.
One of the main challenges remains the need for rapid infrastructure recovery, which does not always align with green finance principles. Examples include cases where international financial organizations provide concessional financing for gas purchases, thermal power plant restoration, etc., contrary to their own decarbonization goals.
The Green Platform was also presented - a website catalog with green finance programs for communities and businesses. The platform's goal is to provide quick access to financing programs based on stakeholder needs. The team has ambitious plans for further development of this tool.
We invite you to visit the platform and explore available financing programs: https://greenplatform.madeinukraine.gov.ua
The Green Transition Office is an independent advisory body under the Ministry of Economy, Environment and Agriculture of Ukraine that helps to implement reforms in the field of green transition, energy and climate policy of Ukraine. The Green Transition Office operates with the financial support of the UK Agency for International Development and is implemented by DiXi Group.
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