Ukraine recently issued a Roadmap for Implementing Environmental, Social and Governance (ESG) Approaches and Sustainable Finance Instruments. The government hopes this roadmap will put Ukraine on the path to align its sustainable finance framework with that of the EU. A press release about the document states:
“The Roadmap covers 2026–2028. It provides for establishing the regulatory, institutional, methodological, and information and analytical basis for implementing ESG approaches, and for integrating them into financial, investment, and related regulatory practice.
The document provides for:
- building a coherent national sustainable finance system;
- creating the legal basis for introducing a taxonomy of sustainable economic activities;
- introducing approaches to corporate sustainability due diligence;
- integrating ESG approaches into the public investment management system and
- developing monitoring of sustainable finance flows;
- developing sustainable finance instruments, improving Ukraine’s investment
- attractiveness, and expanding access to capital markets;
- fulfilling Ukraine’s obligations under the European Union accession process.”
This is remarkable for a couple of reasons. First of all, Ukraine is still embroiled in a bitter war with Russia that began in 2022. The nation has clear priorities and little time for frivolity. Pursuing a sustainable finance framework indicates a real belief in its economic value.
Additionally, this provides another example of the EU’s growing soft power in the global economy. The EU’s sustainable finance system encourages other non-EU states to align their economies even though they are not directly governed by EU law. Ukraine’s sustainable finance framework may be an effort to more closely align its economy and diplomatic relations with EU countries. As a candidate country for admission into the EU, this may also help Ukraine eventually gain membership.
Our members can learn more about sustainable finance here.
