DEVELOPMENT OF BANKING BUSINESS ON ECOLOGICAL PRINCIPLES

Abstract

The article is devoted to the analysis of the development of the banking business on ecological principles in Ukraine amidst global environmental challenges and the ongoing war crisis. It highlights that global issues such as climate change, depletion of natural resources, and environmental pollution underscore the necessity of integrating sustainable development principles into banking activities. In 2023, global CO₂ emissions reached a record 37.4 billion tons, while in Ukraine, the war has caused significant environmental consequences, including the loss of 3 million hectares of forests, emissions of 230 million tons of CO₂-equivalent, and water resource contamination due to the destruction of the Kakhovka Dam. Under these conditions, banks play a pivotal role in supporting the green economy through financing energy-efficient projects and implementing ESG principles.
The study analyzes current trends in green banking development, drawing on international experiences (EU Taxonomy, Bank of America initiatives, EBRD) and Ukrainian realities. Key directions of ecological transformation in banking include green lending, integration of environmental risks into risk management, operational eco-friendliness, and ESG reporting. The activities of Ukrgasbank, a leader in green financing in Ukraine, are examined. The article proposes recommendations for strengthening the regulatory framework, fostering collaboration with international partners, and enhancing environmental awareness to promote green banking in Ukraine.