IFC Partners with National Bank of Ukraine to Help Boost Sustainable Finance, Support Low-carbon Economic Growth

In a bid to drive sustainable finance and unlock climate-smart investments in the country, IFC, a member of the World Bank Group, is partnering with the National Bank of Ukraine (NBU) to support the nation’s goal of shifting to a low-carbon and resilient economy.

According to an IFC report, an estimated $23 trillion in climate-smart investment opportunities exists in the emerging markets globally by 2030, while in Ukraine the estimate is $73 billion. To tap this potential, the country needs to adopt appropriate standards and policies to build a sustainable financial sector.

In response, over the next three years, IFC will work with the NBU to help develop a sustainable finance action plan that will focus on green financing and good environmental, social, and governance (ESG) standards, to help Ukrainian banks operate more sustainably.

The aim is to help the NBU develop a roadmap of policy actions to introduce sustainable finance in Ukraine, with a focus on green financing and other sustainable solutions in line with the EU Green Deal and the EU Green Bond Standards. The roadmap will also include establishing preconditions for the development of social bonds and sustainability bonds, as defined by the International Capital Market Association (ICMA).

“I am confident that IFC will help Ukrainian banks develop the right strategy for financing green projects and implement global best practices in environmental friendliness, social responsibility, and corporate governance,” said Kyrylo Shevchenko, Chairman of the National Bank of Ukraine.

IFC will further advise the NBU on amending its existing Corporate Governance regulations to foster good ESG practices and develop its ESG Disclosure Standards and Risk Management Regulations. The goal is to guide banks on ESG disclosure and help them mitigate ESG risks, among others. Additionally, a series of events will focus on advancing sustainable finance and aligning bank practices with international trends.

Jason Pellmar, IFC Regional Manager for Ukraine, Belarus, and Moldova, said: “We remain inspired by the continued commitment of our Ukrainian partners in advancing sustainable finance and building a greener economy as a way to respond and rebuild social and economic resilience. IFC is looking forward to supporting Ukraine in these efforts through global knowledge sharing as well as country-level technical and financial assistance.”

This initiative is part of IFC’s Green Finance Program and IFC’s Promoting Investment through Integrated Environmental, Social, Governance Standards Program in Europe and Central Asia, implemented in partnership with the Austrian Federal Ministry of Finance and the Swiss State Secretariat for Economic Affairs SECO.

About IFC

IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.