Research on the conceptual foundations of innovative financing instruments for territorial communities’ infrastructure: green bonds

Abstract

The article examines the conceptual foundations for the development of the green bond market in Ukraine as a tool for financing the reconstruction of territorial communities’ infrastructure, particularly under martial law conditions.

Problem  Statement. The relevance of the topic is determined by the urgent need to attract new financial resources to restore infrastructure facilities destroyed as a result of military actions, which have caused significant economic and social losses.

Unresolved  aspects  of  the  problem. Considering the high cost of reconstruction, it is necessary to find innovative financing mechanisms, and green bonds can serve as an important instrument for raising capital to implement such projects.

Purpose of the Article. The purpose of the study is to analyze the state of the green bond market in Ukraine and to substantiate ways to improve their efficiency in financing investment projects at the local community level. The object of the study is the practice of using green bonds to finance municipal infrastructure projects, particularly in the energy, transport, and environmental sectors. The methodological basis of the research includes the analysis of legal and regulatory acts governing the issuance of green bonds in Ukraine, as well as the study of international experience in this field.

Presentation  of  the  Main  Material. The article highlights the factors that constrain the development of this financial instrument, such as martial law, economic instability, inflationary processes, low market liquidity, and insufficient investor confidence. The importance of improving the regulatory framework, providing state guarantees, increasing information transparency, and engaging international financial institutions to stimulate the green bond market is emphasized.

Conclusions. The research results confirm that Ukraine has already established a necessary legal and regulatory environment for the issuance of green bonds; however, their practical implementation remains limited. The authors propose the development of a new edition of the Concept for the Green Bond Market Implementation for 2025–2030, which should include the preparation of pilot projects involving municipalities, international donors, and financial institutions. The practical value of the study lies in formulating proposals for using green bonds to finance environmental, energy-efficient, security, and socially significant projects, which will contribute to the sustainable development of territorial communities and enhance their financial autonomy.