Instruments of state governance for bioeconomy development in the transition to a sustainable economic model

This paper examines the instruments of state governance for bioeconomy development as a decisive factor in Ukraine’s transition to a sustainable economic model amid post-war recovery and European integration. The current state of institutional and regulatory readiness of the domestic economy for bioeconomic transformation is analyzed, and four maturity levels of state governance are identified – fragmented, regulatory, integrated, and proactive – along with their respective characteristics, readiness indicators for the transition to a sustainable model, and typical implementation barriers. Methodological approaches to shaping the toolkit of state governance for the bioeconomy are systematized: economic (fiscal-incentive), regulatory-legal, institutional-organizational, and hybrid – with a definition of their focus, advantages, and limitations. The architecture of the state governance instrument toolkit is examined, encompassing economic instruments (environmental taxation, subsidies, concessional lending), regulatory-legal instruments (standards, permitting systems, extended producer responsibility), institutional-organizational instruments (coordination bodies, cluster platforms, public-private partnerships), and information-communication instruments (monitoring, digital registries, educational programs). The economic, environmental, social, and strategic effects of applying this toolkit are assessed separately across planning horizons – short-term, medium-term, and long-term – including reduced resource intensity of production, growth in the share of bio-based products in GDP, and the formation of an export-oriented sustainable economic model. The report identifies key implementation challenges in the Ukrainian context: fragmented state governance, a funding gap for the transition to sustainable economic models, the need to harmonize national legislation with EU law, and qualification gaps in bioeconomic administration. The report proposes solutions to address each challenge. It argues that further development requires coordinated interagency cooperation, a stable regulatory environment, attracting private investment, and a phased approach to implementing the State Strategy for the Development of the Bioeconomy. Implementing the proposed measures is expected to help Ukraine meet the goals of the European Green Deal. This will also boost the competitiveness of resource-focused industries. In addition, it will create a base for lasting environmental health and economic growth in the country. Keywords: bioeconomy, state governance, sustainable development, public policy instruments, circular economy, environmental taxation, extended producer responsibility, public-private partnership, green deal, regulatory policy, institutional capacity, European integration, bioresources, cluster policy, post-war recovery.