Analysts called for the creation of a green bank in Ukraine for a sustainable recovery

Analysts called for the creation of a green bank in Ukraine for a sustainable recovery Shutterstock
Katerina Belousova

The experience of other countries regarding green banks can help Ukraine create a tool for financing green recovery measures

Specialists of the analytical center DiXi Group called for the creation of a green bank in Ukraine to finance the green post-war reconstruction of the country.

It will promote investment in low-carbon, climate-resilient economies, new Dixi Group's report says.

More than 10 such institutions already exist in the world:

  • at the national level (Australia, Japan, Malaysia, Switzerland, UK);
  • at the state level (California, Connecticut, Hawaii, New Jersey, New York and Rhode Island in the USA);
  • at the county level (Montgomery County, Maryland, USA);
  • at the city level (eg in Masdar, UAE).

The study noted that using the experience of other countries in the creation of green banks can help Ukraine create a tool for financing green recovery measures.

"Such a bank can either be created within the framework of the Ukraine Recovery Plan as a development bank and coordinating financial institution for post-war reconstruction, support for green projects, or by authorizing an existing state-owned bank, such as Ukrgasbank, which is the first green finance bank in Ukraine and has a focus on climate projects," the analysts said.

Australia, for example, created the public green bank Clean Energy Finance Corporation (CEFC) in 2012 to reduce carbon emissions and increase investment in green projects. It leverages its partnerships with leading commercial banks across Australia and borrows funds from them to directly finance technologies and clean energy projects.

Over 8 years of activity, CEFC has funded about 18,000 such projects worth $0.8 billion. Supported projects range in scale from small rooftop solar panels and storage to energy efficient manufacturing and agricultural equipment, as well as improved thermal insulation of buildings, heating and cooling systems, demand management and low-carbon transport.

As EcoPolitic reported before, the Ukrainian public prepared 2 green recovery models countries after the war: "ambitious" and "pragmatic", which are designed to overcome the devastating consequences of Russian aggression and strengthen the position of the state.

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