Green Bonds as a Tool for Attracting Investments in the Water Sector of Ukraine

Abstract

«Green» bonds are one of the popular sustainable investment vehicles and the climate bond market is expected to flourish in the near future. «Green» bonds are gaining popularity among environmentally responsible savvy investors. According to the International Finance Corporation (IFC), the potential for green finance in Ukraine is $73 billion USA by 2030. The water sector is expected to become a key investment area for «green» bonds as the market grows. To achieve this level, new tools are needed to help: issuers meet investor demand for bonds; investors to recognize such bonds; governments to support investment in such bonds. Therefore, building a sustainable basis for the issuance of «green» bonds in the water sector is critical, as it will help raise the level of information about the state and investment opportunities of the water sector, which will give investors confidence that the funds will be used to develop sound solutions for change. climate. The authors reviewed the literature from the «green» bond market in order to highlight the problems of the water sector and provide useful information on the role of environmental investments in the development of financial markets and promoting the sustainability of proposals to investors, the main participants in the «green» bond market, local governments, politicians, some useful information. The water sector of Ukraine needs significant investments for the renewal of fixed assets of water supply and wastewater enterprises, the reconstruction and development of engineering infrastructure, the introduction of new technologies, the improvement of the quality of services, etc. The authors analyze the problems that limit the possibility of mobilizing investments for this sector, the existing mechanisms for financing the investment needs of the Ukrainian water sector by sources of funds. The authors suggest ways to overcome institutional and market barriers in the development of the «green» bond market in the water sector of Ukraine. Key words: «green» bonds, «blue» bonds, issuers, water sector, sustainable development.