BANKING ECO-CREDIT AS AN INSTRUMENT FOR SUSTAINABLE DEVELOPMENT FINANCING

Abstract

The article explores the essence of bank eco-lending as one of the key instruments for financing sustainable development amid global environmental transformation. It examines the main forms and mechanisms of eco-lending implementation, outlines international experience and Ukrainian practices of its deployment. The article identifies barriers to the development of eco-lending in Ukraine and outlines prospects for its activation in the transition to a "green" economy. Eco-lending is considered a form of targeted financing aimed at supporting projects that reduce negative environmental impacts, enhance energy efficiency, promote the use of renewable energy sources, and implement environmentally safe technologies. The mechanisms of eco-lending implementation in the banking sector are revealed, including the specifics of environmental risk assessment, provision of preferential lending conditions, and interaction between banks, government agencies, and international financial institutions. The article analyzes the international experience of green financing, particularly the practices of the EU, USA, and China, which could be adapted to Ukrainian realities. Key barriers to the development of eco-lending in Ukraine are identified: insufficient regulatory framework, limited financial resources of banks, low awareness among borrowers, and the lack of a comprehensive state strategy. The article outlines prospects for activating green lending through the introduction of incentive mechanisms, including tax benefits, loan guarantees, and subsidies. It emphasizes the importance of consolidated actions by the banking sector, the state, and international partners to form an effective and sustainable green financing system. A comprehensive approach to creating an effective green financing system involving banks, the state, and international partners is substantiated.