ECO-BANKING: FOREIGN EXPERIENCE AND DOMESTIC REALITIES
Abstract
The article examines the essence, current state, and prospects of green banking development in Ukraine in the context of global ecological challenges and post-war reconstruction. Green banking is considered not only as an innovative financial tool but also as a strategic mechanism for implementing the principles of sustainable development and reducing environmental risks. The study highlights the growing importance of environmental finance in ensuring energy efficiency, decarbonization, and the transition to a low-carbon economy. It is noted that the successful implementation of green banking requires the integration of environmental, social, and governance (ESG) principles into banking operations, risk management, and investment policies. The research summarizes international experience in this field, focusing on the practices of Germany, France, the United Kingdom, and Scandinavian countries, which have achieved significant progress through cooperation between the state, financial regulators, and private institutions. The article provides a comparative analysis of green lending programs offered by Ukrainian banks such as Ukrgasbank, ProCredit Bank, and PrivatBank, which actively support renewable energy projects and energy-efficient initiatives. It identifies the main barriers to the development of green finance in Ukraine, including limited access to long-term resources, insufficient institutional and legal frameworks, high credit risks, and macroeconomic instability caused by the ongoing war. The author argues that post-war recovery offers a unique opportunity to embed sustainable finance principles into the national banking system by introducing a green taxonomy, expanding the market for green bonds, and developing ESG reporting mechanisms. The implementation of international experience and state support instruments will stimulate private investments, enhance financial stability, and promote ecological modernization of the Ukrainian economy. Green banking should therefore be perceived not only as a financial innovation but as a key factor in building a resilient, inclusive, and environmentally responsible economy capable of ensuring long-term sustainable growth.
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