Strategy for Green Bond Issuance to Finance Post-War Sustainable Development

Abstract

The post-war reconstruction of cities and territories of Ukraine will require a large amount of financial resources. And in order to ensure sustainable development of territories and the well-being of future generations, Ukraine needs to adhere to environmental, economic and social factors. Compliance with these factors, among other things, will open up new opportunities for Ukraine and access to instruments that allow attracting sustainable financing.

One of the most promising instruments in the sustainable financing market is green bonds. These securities can play a decisive role in financing post-war sustainable development. The purpose of the article is to formulate proposals for a strategy for issuing green bonds to finance post-war sustainable development.

The article proposes an optimal approach to issuing green bonds in Ukraine, which will allow financing post-war sustainable development, while ensuring compliance with international principles of green bonds, high-quality project preparation, and monitoring their impact on the environment. At the same time, when organizing the issuance of these securities, it is proposed to use debt swap mechanisms, which in symbiosis with green bonds will reduce the burden on the state budget, confirm the policy and national obligations of the state to direct funding to the "green" restoration of territories.

The proposals formed will be useful during consultations with international partners, in particular from the European Union. The proposed approach is consistent with the environmental goals and principles of sustainable activity of the EU, with the policy and clear rules, transparent procedures for using funds and informing investors. The proposed approach may also be useful for government agencies when developing a strategy for issuing green bonds to finance post-war sustainable development.