Bodnar Olena, Candidate of Economic Sciences, Associate Professor of the Department of Finance, Banking and Insurance, Mykolaiv, Ukraine

ORCID: 0000-0002-0152-4290
e-mail: bodnaroa@mnau.edu.ua

Politikina Inna, higher education student, Accounting and Finance Faculty, Mykolaiv National Agrarian University, Mykolaiv, Ukraine

ORCID: 0009-0002-7144-0882
e-mail: innapolitikina965@gmail.com

Oreshko Angelina, higher education student, Accounting and Finance Faculty, Mykolaiv National Agrarian University, Mykolaiv, Ukraine

ORCID: 00009-0004-5148-4073
e-mail: angelinaoreshko16@gmail.com

Accounting for Green Financial Instruments (Green Bonds) in Banking Practice

Abstract. Introduction. Green financial instruments are an innovative element of modern banking practice. These instruments are designed to stimulate investments in projects that contribute to reducing greenhouse gas emissions, developing renewable energy, ensuring the efficient use of natural resources, and adapting to climate change. In this context, the accounting of such instruments within the banking system becomes not only a matter of financial reporting, but also an important factor in ensuring transparency and trust among market participants.

The purpose of the study is to generalize the theoretical principles and determine practical approaches to the accounting of green financial instruments in banking activities, particularly green bonds, taking into account international sustainable development standards and current trends in the financial market.

Results. The article examines the essence, economic nature and features of accounting for green financial instruments in banking practice. The place of green bonds, green loans and other sustainable financing instruments in the system of modern banking management is determined. Methodological approaches to their accounting reflection in accordance with international financial reporting standards (IFRS 7, IFRS 9) and environmental reporting requirements are disclosed. The need to introduce double accounting — financial and environmental — is emphasized, which ensures the reflection of not only economic results, but also the environmental effect of the implementation of projects. The international experience of the functioning of green financial systems in the EU, China and the USA is analyzed, as well as the practice of the formation of green banking in Ukraine. The main problems of accounting for green instruments are identified: the lack of uniform standards, insufficient qualification of specialists and a low level of digitalization of accounting processes. The prospects for the development of the accounting system for green financial instruments in Ukraine are substantiated by creating a national taxonomy, digital reporting and the introduction of mandatory ESG reporting in banks. The results of the study have practical significance for improving accounting methodology and increasing the transparency of financial reporting in the context of the transition to sustainable development.

Conclusions. Accounting for green financial instruments in banking practice is a necessary condition for Ukraine’s integration into the global sustainable finance market. It combines traditional financial methods with environmental impact assessment, ensuring transparency, accountability and control over the targeted use of funds. An analysis of international experience has shown that an effective accounting system requires unified standards, project certification, digital platforms and integration of ESG principles into the internal policy of banks. For Ukraine, promising areas are: creation of a national taxonomy of green financial instruments, introduction of double-entry accounting, digitalization of processes, advanced training of specialists and development of mandatory ESG reporting. The implementation of these measures will allow the formation of a transparent, effective system of green banking, increase the investment attractiveness of banks, reduce environmental risks and contribute to sustainable economic development. Thus, the results of the study have practical significance for improving the methodology for accounting for green instruments, improving the quality of financial and non-financial reporting, as well as for creating a basis for the strategic development of the “green” financial sector in Ukraine, which will become a key element of the transition to a low-emission economy and sustainable development.

Keywords: green banking; financial instruments; sustainable development; environmental reporting; ESG; green bonds,; green credit.

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