DiXi Group recommends the government to establish a “green” bank for recovery purposes
The DiXi Group think-tank recommends the Cabinet of Ministers and the National Bank of Ukraine to establish a “green” bank to finance the country’s “green” post-war recovery.
“Using the experience of Australia, Switzerland, Great Britain and other countries in establishing the “green” banks can help Ukraine create a tool for financing “green” recovery measures,” DiXi Group analyst Aliona Korohod writes in the explanation to the report “Best Practices of Debt Restructuring and Post-War “Green” Recovery: Opportunities for Ukraine”.
The study states that such bank can be established either within the framework of the Ukraine Recovery Plan as a development bank and a coordinating financial institution for post-war recovery and support of “green” projects, or by authorizing an existing state bank.
In the event of the formation of such institution, its coordinating status can be established in the Policy on the Development of Sustainable Financing, as approved by the National Bank, and integrated into the Roadmap for the Development of Sustainable Financing.
In general, DiXi Group believes that in the context of financing of “green” post-war recovery projects by Ukrainian banks, the accelerated implementation of this Policy can be demonstrated precisely at such financial institution as a “green” bank.
Remember that according to the OECD definition a “green” bank is a state, quasi-state or non-profit financial institution created specifically to promote investments in a low-carbon, climate-resilient economy.
There are already more than a dozen such institutions in the world. You can learn more about the international experience of “green” banks in DiXi Group’s quarterly report.
As “Ukrainian Energy” reported, Ukraine expects not only to overcome the devastating consequences of the war, but also to strengthen its position in the areas where many things can be done more modernly, efficiently, and conveniently.
At the same time, a “green” vision of the future can become the basis for building a stable modern economy of Ukraine, ensuring energy independence and better living conditions for citizens, however this will require considerable financial resources.
