Conceptualizing the Public Component of Green Finance
Horyn V. P., Sydor I. P., Bula P. V., Mudryi T. P.

Horyn, Volodymyr P. et al. (2025) “Conceptualizing the Public Component of Green Finance.” The Problems of Economy 1:296–307.
https://doi.org/10.32983/2222-0712-2025-1-296-307

Section: Finance and banking

UDC 336.1:502

Abstract:
The article presents a theoretical substantiation for the public component of green finance. The generalization of scientific viewpoints from domestic and foreign economic science regarding the essence and structure of green finance has enabled the distinction of both public and private components within it. The public component of green finance encompasses financial relationships involving the State, which accompany the formation and utilization of financial resources for the implementation of ecological sustainable development goals. Both general and specific characteristics of public green finance are disclosed, along with the principles of their operation, which include imperativeness, strategic orientation, and the alignment of interests (inclusiveness). Particular attention is given to uncovering the main features of the instruments of green finance that public authorities use in the formation and utilization of financial resources for the realization of the ecological component of sustainable development goals. According to the nature of the action, these instruments are classified into fiscal, regulatory, and universal. Financial instruments of public green finance have also been proposed to be distinguished according to the content of operations in which they are involved (when forming or using financial resources), but a characteristic feature of some such instruments (grants, green loans) is their universality. Key features and problematic aspects of environmental taxation, the implementation of a greenhouse gas emissions trading system, and innovative schemes for converting State debt obligations in exchange for funding green projects are characterized. It is substantiated that under wartime conditions, budgetary programs related to the sphere of green finance have not only environmental but also security significance, aimed at reducing Ukraine’s dependence on imported energy resources and maintaining the country’s energy system in a functional state. Prospects for further research on the theoretical substantiation of public green finance lie in examining the external environmental factors that influence the parameters of their development, as well as developing formalized approaches to assess the impact of public finance instruments on the indicators of the country’s ecological development.

Keywords: green finance, public finance, financial instruments, financial resources, fiscal instruments, financial incentives, sustainable development.

Fig.: 1. Bibl.: 40.

Horyn Volodymyr P. – Doctor of Sciences (Economics), Professor, Professor, Department of Finance named after S. I. Yurii, West Ukrainian National University (11 Lvivska Str., Ternopil, 46009, Ukraine)
Email: v.horyn@ukr.net
Sydor Iryna P. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Finance named after S. I. Yurii, West Ukrainian National University (11 Lvivska Str., Ternopil, 46009, Ukraine)
Email: irunasudor@gmail.com
Bula Pavlo V. – Postgraduate Student, Department of Finance named after S. I. Yurii, West Ukrainian National University (11 Lvivska Str., Ternopil, 46009, Ukraine)
Email: pavlobula21@gmail.com
Mudryi Taras P. – Postgraduate Student, Department of Finance named after S. I. Yurii, West Ukrainian National University (11 Lvivska Str., Ternopil, 46009, Ukraine)
Email: tmudryi@cfg.com.ua

List of references in article

“Debt swaps could release $100 billion for climate action“. International Institute for Environment and Development. https://www.iied.org/debt-swaps-could-release-100-billion-for-climate-action
“Environmental crimes: MEPs adopt extended list of offences and sanctions“. European Parliament. https://www.europarl.europa.eu/news/en/press-room/20240223IPR18075/environmental-crimes-meps-adopt-extended-list-of-offences-and-sanctions
Hohne, N. et al. “Mapping of Green Finance Delivered by IDFC Members in 2011“. Ecofys. 2012. https://www.idfc.org/wp-content/uploads/2019/03/idfc_green_finance_mapping_report_2012_06-14-12.pdf
Jamel, M., and Zhang, C. “Green Finance, Financial Technology, and Environmental Innovation Impact on CO? Emissions in Developed Countries“. Journal of Energy and Environmental Policy Options. 2024. https://resdojournals.com/index.php/JEEPO/article/view/373
Jones, M. “Exclusive: Ecuador examining new Amazon and Ocean linked debt-for-nature swaps“. Reuters. https://www.reuters.com/sustainability/climate-energy/ecuador-examining-new-amazon-ocean-linked-debt-for-nature-swaps-sources-say-2024-04-23/
Kantorowicz, J. et al. “How to finance green investments? The role of public debt“. Energy Policy, vol. 184 (2024). DOI: https://doi.org/10.1016/j.enpol.2023.113899
Kharb, R. et al. “Modelling the barriers of green financing in achieving environmental sustainability: an analysis using TISM“. Environ Dev Sustain (2024). DOI: https://doi.org/10.1007/s10668-024-05266-1
La Torre, M. et al. “Public spending and green finance: A systematic literature review“. Research in International Business and Finance, vol. 68 (2024). DOI: https://doi.org/10.1016/j.ribaf.2023.102197
Lindenberg, N. “Definition of Green Finance - Proposal for the BMZ“. German Development Institute. 2014. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2446496
Zadek, S., and Flynn, C. “South-Originating Green Finance: Exploring the Potential“. The Geneva International Finance Dialogues, UNEP FI, SDC, and IISD. 2013. https://www.iisd.org/system/files/publications/south-originated_green_finance_en.pdf
“The Green Qualifications Workbook. Chartered Banking Institute. Chapter 1: What is green finance?“ https://assets-global.website-files.com/62de70239e21734fcc1d5873/634686813618bed5328486fc_What%20Is%20Green%20Finance.pdf
Artemchuk, O. “Derzhborh Ukrainy dosiah maizhe 160 miliardiv dolariv“ [Ukraine's National Debt Reached Almost $160 Billion]. Ekonomichna pravda. https://epravda.com.ua/finances/derzhborg-ukrajini-dosyag-mayzhe-160-milyardiv-dolariv-801432/
Bielousova, K. “Rynok SO2: yak pratsiuie systema torhivli kvotamy na vykydy parnykovykh haziv“ [CO2 Market: How the Greenhouse gas Emissions Trading System Works]. https://ecopolitic.com.ua/ua/news/rinok-so2-yak-pracjuie-sistema-torgivli-kvotami-na-vikidi-parnikovih-gaziv/
“Blakytna ekonomika - shcho tse take, vyznachennia ta poniattia“ [Blue Economy - What Is It, Definition and Concepts]. https://uk.economy-pedia.com/11030068-blue-economy
Bulavynets, V. M. “Ekolohichne opodatkuvannia yak instrument «zelenykh» finansiv“ [Environmental Taxation as a Tool of "Green" Finance]. Efektyvna ekonomika. 2020. http://www.economy.nayka.com.ua/pdf/12_2020/118.pdf
“Vydatky derzhavnoho biudzhetu“ [State Budget Expenditures]. Veb-portal vidkrytykh danykh Openbudget.gov.ua. https://openbudget.gov.ua/national-budget/expenses?class=program&view=table
Hatska, L. P. “«Zeleni» perspektyvy finansovoho rozvytku“ ["Green" Prospects for Financial Development]. Internauka. Seriia : Ekonomichni nauky. 2017. https://www.inter-nauka.com/uploads/public/15079910273889.pdf
Honcharenko, M. “Teoretychni pidkhody do vyznachennia sutnosti ta funktsii publichnykh finansiv“ [Theoretical Approaches to Defining the Essence and Functions of Public Finances]. Aktualni problemy derzhavnoho upravlinnia, no. 1(57) (2020): 37-43.
Horyn, V. P. “Finansovi determinanty enerhetychnoi bezpeky derzhavy v umovakh viiny“ [Financial Determinants of the State's Energy Security in Wartime Conditions]. Innovatsiini pidkhody do rozvytku tekhnolohii ta ekonomiky IADTE 2024. http://dspace.wunu.edu.ua/handle/316497/52004
Horyn, V. P. “Finansovyi mekhanizm zabezpechennia suspilnoho dobrobutu“ [Financial Mechanism for Ensuring Public Welfare]: dys. ... d-ra ekon. nauk : 08.00.08, 2021.
“Hranty ta kredyty na prydbannia soniachnykh elektrostantsii u 2024 rotsi v Ukraini!“ [Grants and Loans for the Purchase of Solar Power Plants in 2024 in Ukraine!]. https://sanlarix.com.ua/granty-ta-kredyty-na-prydbannya-sonyachnyh-elektrostanczij-u-2024-roczi-v-ukrayini/
Hrynchuk, S. “71 mlrd dolariv zbytkiv ta 180 mln tonn vykydiv: na SOR29 Ukraina nazvala masshtab shkody pryrodi za 1000 dniv viiny“ [$71 Billion in Damages and 180 Million Tons of Emissions: At COP29, Ukraine Named the Scale of Damage to Nature During 1,000 Days of War]. Ministerstvo zakhystu dovkillia ta pryrodnykh resursiv Ukrainy. https://mepr.gov.ua/71-mlrd-dolariv-zbytkiv-ta-180-mln-tonn-vykydiv-na-sor29-ukrayina-nazvala-masshtab-shkody-pryrodi-za-1000-dniv-vijny/
Dmytryk, O., Artemenko, K., and Boryshchak, V. “Aktualni pytannia ekolohizatsii finansiv ta zelenoho finansuvannia“ [Current Issues of Greening Finance and Green Financing]. Yurydychnyi naukovyi elektronnyi zhurnal. 2024. http://www.lsej.org.ua/4_2024/86.pdf
Dobrovolska, O. “«Zeleni finansy» yak skladova paradyhmy staloho rozvytku“ ["Green Finance" as a Component of the Sustainable Development Paradigm]. Biznes Inform, no. 5 (2018): 287-294.
Dubko, A. S. “Vprovadzhennia ta rozvytok zelenykh finansiv v Ukraini: yevrointehratsiinyi kontekst ta pravove pidgruntia“ [Introduction and Development of Green Finance in Ukraine: European Integration Context and Legal Basis]. Nove ukrainske pravo. 2022. http://newukrainianlaw.in.ua/index.php/journal/article/view/362/321
“Zelenyi taryf v Ukraini 2025: shcho tse take, yaka tsina elektroenerhii ta yaki dokumenty potribni“ [Green Tariff in Ukraine 2025: What Is It, What Is the Price of Electricity and What Documents are Required]. Solarmax. https://solarmax.in.ua/info/zeleniy-tarif-2025
Karlin, M. “Problemy i perspektyvy vykorystannia «zelenykh» finansiv terytorialnymy hromadamy: svitovyi dosvid ta Ukraina“ [ENGLISH_UA Problems and Prospects of Using "Green" Finance by Territorial Communities: World Experience and Ukraine]. Ekonomichnyi chasopys Skhidnoievropeiskoho natsionalnoho universytetu imeni Lesi Ukrainky. 2018. http://nbuv.gov.ua/UJRN/echcenu_2018_1_23
Kovalenko, O. V., Bohomazova, V. M., and Kvasha, T. K. “Normatyvno-pravove zabezpechennia morskykh naukovykh doslidzhen za napriamom «Blakytna ekonomika, blakytne zrostannia» v ramkakh «Intehrovanoi morskoi polityky» v YeS ta Ukraini : nauk.-analit. zapyska“ [Regulatory And Legal Support For Marine Scientific Research In The Direction Of "Blue Economy, Blue Growth" Within the Framework of the "Integrated Maritime Policy" in the EU and Ukraine: scientific and analytical note]. Kyiv : UkrINTEI, 2023. http://www.uintei.kiev.ua/sites/default/files/blakytna_ekonomika_1.pdf
[Legal Act of Ukraine] (2001). https://zakon.rada.gov.ua/laws/show/2341-14
Krysovatyi, A. “Voienni realii fiskalnoho prostoru publichnykh finansiv Ukrainy“ [Military Realities of the Fiscal Space of Public Finances of Ukraine]. Svit finansiv, no. 1(74) (2023): 8-30.
Lunina, I. O., and Bodnaruk, T. H. “Evoliutsiia teorii ta naukova kontseptsiia publichnykh finansiv“ [Evolution of the Theory and Scientific Concept of Public Finance]. Finansy Ukrainy. 2019. https://finukr.org.ua/docs/FU_19_08_026_uk.pdf
Lutsiv, B., Maiorova, T., and Lutsiv, P. “«Zeleni finansy» v paradyhmi staloho investytsiinoho rozvytku ekonomiky Ukrainy“ ["Green Finance" in the Paradigm of Sustainable Investment Development of the Ukrainian Economy]. Svit finansiv, no. 3(76) (2022): 64-76.
Liubich, O., and Svystun, A. “Innovatsiini borhovi finansovi instrumenty derzhavnykh bankiv rozvytku“ [Innovative Debt Financial Instruments of State Development Banks]. Naukovi pratsi NDFI. 2020. https://npndfi.org.ua/docs/NP_20_03_041_uk.pdf
Markevych, K. “Chy vplyne zbilshennia podatku na SO2 na ekolohichnyi stan v kraini?“ [Will the Increase in the CO2 Tax Affect the Environmental Situation in the Country?]. Razumkov Tsentr. https://razumkov.org.ua/statti/chy-vplyne-zbilshennia-podatku-na-so2-na-ekologichnyi-stan-v-kraini
Oliinyk, D. “Vplyv «zelenykh finansiv» na ekonomichni, sotsialni ta ekolohichni naslidky: vyklyky sohodennia“ [The Impact of "Green Finance" on Economic, Social and Environmental Consequences: Current Challenges]. Nezalezhnyi audytor. 2016. https://n-auditor.com.ua/components/com_jshopping/files/demo_products/NA__11__58__2016.pdf
Fedchyshyn, V. “Zastosuvannia ekolohichnykh podatkiv v Ukraini: Analitychna zapyska“ [Application of Environmental Taxes in Ukraine: Analytical Note]. Proiekt UA2008-01: Analitychna pidtrymka dlia upravlinnia derzhavnymy finansamy na osnovi naiavnykh danykh / Capacity Support for Evidence-based public financial management. Kyiv : Tsentr ekonomichnoi stratehii, 2020. https://ces.org.ua/wp-content/uploads/2023/05/zastosuvannya-ekologichnih-podatkiv.pdf
Khakhaliev, D., and Nemashkalo, K. “Instrumenty finansuvannia «zelenoho» investuvannia v umovakh staloho rozvytku“ [Financing Instruments for "Green" Investment in Sustainable Development]. Development Service Industry Management. 2024. https://dsim.khmnu.edu.ua/index.php/dsim/article/view/145/141
Chala, V. S., and Demidov, B. Yu. “Teoretychni aspekty zelenoho finansuvannia dlia zabezpechennia staloho rozvytku“ [Theoretical Aspects of Green Financing for Sustainable Development]. Ekonomichnyi prostir. 2024. https://economic-prostir.com.ua/wp-content/uploads/2024/10/193-37-45-chala.pdf
Shevchenko, O.M. “«Zeleni» finansy yak holovne dzherelo staloho rozvytku“ ["Green" Finance as the Main Source of Sustainable Development]. In Modern systems of science and education in the USA, EU and other countries '2024, 117-120. Washington, USA, 2024. DOI: https://doi.org/10.30888/2709-2267.2024-22-00-017
Sholudko, O., Hrytsyna, O., and Rubai, O. “Teoretychni osnovy zastosuvannia instrumentiv zelenoho finansuvannia“ [Theoretical Foundations of the Application of Green Financing Instruments]. Ahrarna ekonomika. 2024. http://agrarianeconomy.lnau.edu.ua/images/docs/ae_2024_17_1/AE-17_1_4.pdf