Green energy funding in Ukraine

Анотація

Abstract Sustainable development of society is the only effective mechanism of development in the face of climate change and environmental pollution. One of the ways to solve these problems is the transition to a green economy. The purpose of this article is to identify current trends and prospects for the development of green energy financing in Ukraine. This study analyses green energy financing, as this area is quite promising after the start of the full-scale invasion of the Russian Federation (RF) and a massive attack on Ukraine’s energy infrastructure. As of the beginning of June 2023, according to preliminary estimates, direct losses of the Ukrainian energy sector amounted to USD 8.8 billion. It was found that 6% of RES were damaged; 25% were occupied. All this had a negative impact on energy production. A positive trend was observed during the periods 2016–2018 and 2020–2021. According to Climatescope’s Most Attractive Markets for Renewable Energy Investment Ranking, Ukraine ranks 74th globally and 27th in the European region with a score of 1.83. In 2022, investments in clean energy decreased by 99.7%. The problems that hinder the attraction of green finance in Ukraine are identified. To develop green finance, it is proposed to adopt the subsidy system, features and specifics of contracts for difference from the experience of Poland. The experience of Germany is useful in the issue of the Energy Transition Fund. The experience of Denmark is worth using public-private partnerships. It is established that despite the growing share of non-performing loans, lending is a promising area of green energy financing.

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