Sustainable finance of urban development projects in Ukraine

The article provides a comprehensive study of sustainable finance in the context of urban development projects in Ukraine. Research of this topic is important, because modern cities are rapidly growing, and innovative solutions are needed to manage this expansion while addressing environmental challenges. The authors emphasize the importance of sustainable finance in achieving the United Nations' Sustainable Development Goals, particularly Goal 11 "Sustainable cities and communities". Post-war reconstruction gives Ukraine the opportunity to rebuild its cities based on green principles, in line with the European Green Deal and aiming for climate neutrality by 2050. This transformation requires innovative financial strategies, including sustainable finance, which integrates environmental, social, and governance (ESG) considerations into investment decisions. The article highlights the key principles of sustainable finance framework and the main categories of financial instruments used in sustainable finance transactions. The authors studied the progress of sustainable finance in Ukraine, namely the formation and development of the legislative framework, strategic planning, financial instruments and the integration of ESG considerations into financial decision-making. Furthermore, the article discusses the funding sources and mechanisms for sustainable development in Ukrainian cities, including public and private financing, international technical assistance projects, and state programs. The authors also emphasize the importance of strategic planning and donor coordination in achieving sustainable urban development goals. Key tasks include improving financial mechanisms, stimulating private capital, and developing realistic post-war urban plans. Overall, the article concludes that while Ukraine has made progress in developing sustainable finance, there is still work to be done to fully integrate sustainable finance principles into the country's financial sector. The authors emphasize for continued efforts to improve the legislative framework, raise awareness, attract of private investors, enhanced risk management, develop digital technologies, and expand concessional funding to support sustainable urban development in Ukraine. Addressing these challenges will be important for achieving sustainable urban development and aligning Ukraine’s financial system with global sustainability trends.