ENVIRONMENTAL INVESTMENTS AS A STRATEGIC VECTOR FOR THE DEVELOPMENT OF UKRAINIAN CITIES. MECHANISMS FOR THEIR ATTRACTION
Abstract
Environmental investments are becoming a key strategic component of sustainable development in Ukrainian cities, especially in the context of European integration and post-war recovery. This article analyzes institutional and financial aspects of environmental investment in Ukraine, identifies current challenges, and proposes ways to improve their efficiency. The topic is gaining urgency due to the need to strengthen local energy independence, improve public well-being, and minimize environmental risks amid rapid urbanization and accelerating climate change. The study is based on a systematic analysis of financial mechanisms and instruments used by Ukrainian municipalities, including local budgets, state support, commercial banking products, international donor assistance. Comparative and generalization methods are applied to identify trends and generate practical recommendations for enhancing the effectiveness of municipal environmental investment strategies. The results highlight significant limitations of internal financial resources due to wartime priorities, increased defense spending, and reduced local fiscal capacity. At the same time, international grants, concessional loans from global financial institutions, and PPPs are becoming more accessible. Ukrainian banks are gradually developing green financial instruments, and international donors offer technical and financial assistance within energy efficiency, decarbonization, and resilience programs. The article provides recommendations to improve municipal financial capacity, including strengthening legislative frameworks, introducing ESG-compliant tools, expanding green bond market. Emphasis is placed on aligning the banking sector with international sustainability standards and enhancing cooperation with foreign partners to unlock long-term green finance opportunities. The findings are relevant for municipalities, investors, policymakers, and financial institutions, involved in the transformation toward sustainable and climate-resilient urban development.
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