GREEN BONDS AS A TOOL FOR FINANCING ENVIRONMENTALLY SUSTAINABLE INITIATIVES IN THE CONTEXT OF POST-WAR RECONSTRUCTION OF AMALGAMATED HROMADAS

Ivan Sokoliuk

doi:10.32782/2707-8019/2024-2-12

Ivan Sokoliuk Private Higher Education Establishment "European University" https://orcid.org/0009-0009-0993-4620

DOI: https://doi.org/10.32782/2707-8019/2024-2-12

Keywords: green bonds, amalgamated hromadas (AHs), sustainable development, green investment, financing

Abstract

The article presents a discussion of the current issues associated with the introduction of green bonds as a financing tool for environmentally sustainable initiatives in the amalgamated hromadas (AHs) of Ukraine within the context of post-war recovery. The author examines the significance of green bonds in facilitating sustainable development, particularly in the context of environmental projects, infrastructure rehabilitation and the transition to renewable energy sources. Specific consideration is given to the function of this financial instrument in attracting the investment capital required to implement environmental initiatives that can ensure the long-term economic and social sustainability of regions. Furthermore, the article examines the concepts and principles underlying green bonds, elucidating their principal advantages over traditional bonds. Additionally, it analyses the legal framework that governs the green bond market in Ukraine. The author presents an analysis of the scientific research and legal acts that have served as the foundation for the evolution of the green bond market. In particular, the author emphasises the necessity of establishing a favourable legal environment for green bond issuers and investors, which is crucial for ensuring the transparency and efficiency of this market. The principal obstacles and challenges encountered during the implementation of green bonds are identified. The article presents an analysis of the legal, financial and organisational barriers that may impede the implementation of environmental projects, as well as the risks associated with the lack of preparedness of local authorities. The author considers the potential for green bonds to be used as a means of financing a range of sustainable development projects, particularly in the context of infrastructure destruction resulting from armed aggression. The article posits that the successful implementation of green bonds hinges on two key factors: active community participation in decision-making processes and the development of a comprehensive strategy that can effectively address existing barriers and risks. The article presents a compelling argument that the introduction of green bonds can serve as a pivotal catalyst for the recovery of Ukraine's agriculture, while simultaneously advancing the attainment of environmental objectives and sustainable development. It proposes methods for incorporating green bonds into the financial strategies of AHs, which will facilitate economic, social, and environmental sustainability in the post-war period.

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