Green financing for businesses: FRU presents a guide for interacting with banks

Green financing for businesses: FRU presents a guide for interacting with banks shutterstock

Maria Semenova

This is a collection of practical advice for entrepreneurs seeking to attract bank financing for eco-modernization

To receive financing, businesses must comply with environmental and social standards. Therefore, the Climate Platform of the Federation of Employers of Ukraine (FEU) has developed a guide for Ukrainian businesses to help them obtain loans or grant support.

According to the FEU, the document is a practical tool for preparing to apply to Ukrainian banks.

Eco-social standards as a prerequisite

When deciding whether to grant a loan or grant, banking institutions first assess the stability of the business and all its criteria. And eco-social risks are a key component. Compliance with standards for their minimization is often decisive, including for the EBRD and the World Bank.

A guide for preparation

The document will be useful for companies planning to modernize their production, implement the best available technologies and management methods (BAT), or restore their capacities in accordance with the principles of sustainable development.

If a business wants to attract bank funds for this purpose, it needs to "anticipate" the requests of financial institutions. Therefore, the FEU's guide "Financing. Obtaining credit funds for projects, including eco-modernization and BAT implementation" has compiled possible questions from banks, as well as detailed descriptions of procedures, declaration forms, and examples of successful financing.

The guide is available on the FEU website at the link.

The document was developed with the support of the Confederation of Danish Industry (DI) and the New Democracy Fund.

Ukrainian industry must implement BAT to obtain an integrated environmental permit (IEP). Companies have four years to obtain this document. For information on the conditions and algorithm for obtaining an IEP, see the article by EcoPolitic.

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