Transformation of the national financial system of Ukraine: comprehension and ways of integration to sustainability

Abstract

The article analyzes modern scientific approaches to sustainable finance and features of the transition of national financial systems, markets, financial flows in the direction from unsustainable to innovative sustainable technologies. The latest practice of implementing investment and financial activities in accordance with the goals of sustainable development is systematized. In the context of building a system of sustainable finance in Ukraine, the parity of two vectors of its functioning should be taken into account: ensuring both the sustainability of the financial sector itself and the sustainable functioning of the economy as a whole. That is, the development of the national system of sustainable finance in Ukraine is based on the generally recognized world practice in the field of sustainable finance and the decisions of the United Nations Organization, which relate to the financial aspects of sustainable development. In the context of this transformational process, Ukraine joined the Paris Agreement and received the Second Nationally Determined Contribution, which is a concept of state development to achieve ecologically and economically expedient transformations in all sectors of the economy. Financing of the Second Nationally Determined Contribution by 2030 should include a combination of domestic budget allocations, the private sector (domestic and foreign), bilateral and multilateral financial mechanisms, and international assistance. The article focuses on the need to understand the concepts and tools for ensuring financial stability, to determine the differentiated characteristics of the main directions of the transformation of the financial system and typologies of its transition. The authors single out the basic characteristics of transitions to sustainability and innovation processes: rethinking the achievement of new economic, environmental and social goals; time limit; creation of new socially inclusive, fair, ecologically sustainable economic systems; rejuvenation of the economic system through constant innovation; ensuring support for the financial orientation of transitions to sustainable development, which require integration and coordination of financial flows.