INDICATORS OF STATE FINANCIAL INCENTIVES FOR ENVIRONMENTAL PROJECTS

Abstract

In the modern context of global environmental challenges and the urgent need for a transition to sustainable development, effective management of public finances for implementing environmental projects has become one of the key priorities. As a country striving for European integration, Ukraine faces a range of issues in environmental governance, particularly due to the inefficient allocation of resources and the lack of transparent mechanisms for assessing the outcomes of environmental initiatives. In Ukraine, the effectiveness of environmental projects remains a pressing problem due to the lack of public funding, the absence of transparent mechanisms for assessing results, and the weak integration of international experience. This creates risks of irrational use of resources and failure to achieve strategic environmental goals. Given this context, the search for new approaches to financing and monitoring environmental projects is critically important for the European integration aspirations of our state. International experience proves that effective financial management for environmental initiatives and projects can be a powerful incentive for development. Many countries already use developed mechanisms for assessing the effectiveness of environmental projects, particularly through performance indices, integrating environmental aspects into financial planning, and performance monitoring systems. The article develops key performance indicators (KPI) of ecological projects and their essence, meaning, and components. It also systematizes the advantages of developing an ecological economy. An analysis of the financial indicators of leaders in ecological production is carried out. This article explores the indicators of environmental project efficiency within the public financial management system and proposes ways to implement global best practices in Ukraine. Special attention is given to the analysis of international practices, especially the experience of the European Union, and the development of key performance indicators (KPIs) that can be adapted to the Ukrainian context. A comparative analysis based on real business cases is conducted to identify the financial impact of introducing environmental innovations and technologies.