Alona Bilokon, PhD, expert in technology transfer and sustainable development, Supervisory Board Member of the GCIP regional accelerator center for innovation, technology, and start-ups in Mykolayiv region of Ukraine, based at the Petro Mohyla Black Sea National University, Mykolayiv, Ukraine

ORCID ID: 0000-0003-1644-4397
e-mail: alona.bilokon@gmail.com

Ukraine’s Green Economy Development in the International Context

Abstract. Introduction. Global warming affects both the quality of life of the planet’s population and the reorientation of the world’s economies. This is accompanied by globalization processes taking place in the context of changes in our civilization. Meanwhile, green economy development is one of the priority directions on the way to the energy transition of Ukraine, and the introduction of the green bond market is a promising mechanism for the functioning of the green economy.

Purpose. The purpose is to analyze the peculiarities of green economy development in Ukraine in the international context.

Results. 1. Based on the international “green” legislation, international programs and reports, the development of Ukraine’s green economy in the international context was studied. It has been established that the practical mechanism for implementing the strategy of sustainable development is the green economy, the main idea of which is to reduce various factors of negative impact on the environment through the formation of new “green” industries and “greening” of existing ones, the transformation of the accounting and tax system taking into account the value of natural capital, fair distribution of natural resources, etc. The implementation of these principles should be accompanied by a high dynamic of investment processes, a game of getting ahead of the market of green investments with a simultaneous focus on the preservation of the natural environment for future generations. 2. The financial mechanism of the development of the green economy in Ukraine is analyzed. The green economy functions on a budgetary basis and is directly dependent on the country’s budgetary policy. The development of the green economy in the country requires modern financial instruments aimed at active support by the state through the use of a number of stimulating mechanisms: regulatory, organizational, economic, financial, informational, communication, budgetary and tax. After all, the development of the green economy, in particular the use of renewable energy sources, is associated with significant positive macroeconomic changes. 3. The prospects of the green bond market in Ukraine are revealed. The guiding principles for the green bond market in Ukraine, which should be provided in regulatory acts, are: project evaluation and selection process; use of funds; management of funds; reporting. The main buyers of green bonds are targeted institutional and socially responsible investors. For investors, green bonds can have an advantage over other types of securities both on the domestic and international stock market. We believe that for development of the green economy in Ukraine, the introduction of the green bond market is the most realistic and promising.

Conclusions. The development of the green economy in Ukraine should take place taking into account the international legal framework, as well as in the context of European environmental programs such as the Green Deal. Green bonds are, of course, a promising financial mechanism for the functioning of the green economy in Ukraine. The implementation of this financial instrument in the green financial system of Ukraine should take place according to the following principles:

1. Introduction of green bonds into circulation throughout Ukraine as a separate subtype of securities.
2. Introduction of the concept of ecological projects and the basis of their taxonomy.
3. Establishment of the circle of issuers of green bonds and the legal regime of their issuance (government, municipalities, international financial organizations, specialized institutions, legal entities under private law).
4. Protection of the rights of investors who invest in green bonds. At the same time, the issuer does not have the right to take any actions related to early termination, abolition, other loss of the right to the project of ecological direction, as well as their encumbrance.
5. The principle of targeted use of funds raised from the issue of green bonds. The issuer is obliged to ensure targeted use of proceeds for financing and/or refinancing the costs of environmental projects.
6. The principle of disclosure of information regarding the implementation and financing of environmental projects. The issuer additionally submits information in the issue prospectus – regarding the characteristics of the project, assessment of its impact and in the annual report – regarding the use of the funds raised.

Keywords: green economy; energy transition; renewable energy; Ukraine; international legislation; climate change.

References:

1. Alparslan, U. (2021). Turkey, Ukraine and Western Balkan countries compete for top spot in coal power air pollution in Europe. Ember. Retrieved from https://ember-climate.org/commentary/2021/05/25/coal-power-air-pollution/ [in English].
2. European Green Deal (2019). Retrieved from https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en [in English].
3. Health Impacts of Coal Power Plant Emissions in Ukraine (2021). Retrieved from https://energyandcleanair.org/publication/health-impacts-of-coal-power-plant-emissions-in-ukraine/ [in English].
4. Green Bonds Market Summary 2019. (Reports February 2020). Official web-site. Retrieved from https://www.climatebonds.net/files/reports/2019_annual_highli [in English].
5. Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication. (2011). New York: United Nations Environment Programme [in English].
6. Paris Agreement (2015). Retrieved from https://unfccc.int/sites/default/files/english_paris_agreement.pdf [in English].
7. Proghrama «Ekologhizacija ekonomiky v krajinakh Skhidnogho partnerstva»: Greening Economies in the European Union’s Eastern Partnership Countries (EaP GREEN) (2022). Retrieved from http://ndei.me.gov.ua/pdf/EAP_ GREEN.pdf [in English].
8. Bystrjakov I. K. (2011). Stanovlennja zelenoji ekonomiky v Ukrajini: metodologhichni aspekty. Mekhanizm reghuljuvannja ekonomiky, 4, 50–57 [in Ukrainian].
9. Vernadskyj, V. Byosfera. (1967). Mуslj, 49 p. [in Russian].
10. Gherasymchuk, Z. V. (2015). The role of renewable energy sources in the system of regional economic policy. Aktualjni problemy ekonomiky, 11 (173), 234–239 [in Ukrainian].
11. Dyma, V. (2020). Financial instruments for stimulating the development of the “green” economy in Ukraine. Investyciji: praktyka ta dosvid, 5-6, 182-187 [in Ukrainian].
12. Dytrykh V. (2009). Zelenyj byznes – myllyardnaja sdelka! Na smenu dotkomam prykhodjat dotghryny. Kyiv: NAN Ukrajini [in Russian].
13. Kvach Ja. P., Firsova K. V. & Borysov, O. G. (2015). «Green economy»: opportunities for Ukraine. Ghlobaljni ta nacionaljni problemy ekonomiky, 6, 52-56 [in Ukrainian].
14. Kumachova, A. S. (2015). The policy of formation and development of the «green economy» as a specific object of state regulation. Deryhavne upravlinnya: udoskonalennya ta rozvytok, 12. Retrieved from http://www.dy.nayka.com.ua/ [in Ukrainian].
15. Potapenko, V. Gh. (2011). Vid praktyky realizaciji pryrodookhoronnykh zakhodiv do ekologhichnoji polityky v Ukrajini: shljakhy i problemy: analitychna dopovidj. Kyiv: NISD [in Ukrainian].
16. Stankevych, N. A. «Green investments» as a component of sustainable development of the state. Retrieved from http://eztuir.ztu.edu.ua/6327/1/118.pdf [in Ukrainian].
17. Stepanenko, B. B. (2011). Theoretical foundations of the formation of a financial mechanism for the development of green business. Ekonomichnyj analiz, 8, 192-196 [in Ukrainian].
18. Prushkivsjka, E. V. (2013). Development of «green economy»: national aspect. 3. Retrieved from http://business-inform.net/pdf/2013/3_0/186_191.pdf [in Ukrainian].