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NBU and IFC to Join Efforts in Developing Green Finance

NBU and IFC to Join Efforts in Developing Green Finance

On 16 April 2021, a Cooperation Agreement was signed in Kyiv between the NBU and International Finance Corporation (IFC), which is part of the World Bank Group.

NBU Governor Kyrylo Shevchenko and IFC Regional Manager for Ukraine, Belarus, and Moldova Jason Pellmar signed the Cooperation Agreement to implement the Sustainable Finance Development Project in Ukraine. The project is aimed at building out sustainable finance in Ukraine by developing green finance standards and integrated environmental, social, and management standards. This cooperation will be carried out under two programs: "Green Finance" and the "Integrated Program on Environmental, Social, and Governance Practices for Investment Promotion in Europe and Central Asia" (ESG Program).

According to the IFC report, in emerging markets, there are global opportunities for making USD 23 trillion of climate investments by 2030. In Ukraine, this investment potential is estimated at USD 73 billion. To unlock this potential, Ukraine needs to adopt appropriate standards and policies to build a sustainable financial sector. 

"We are pleased to see this commitment and consistency of our Ukrainian partners in promoting sustainable finance and building a green economy as one of the ways to restore the social and economic stability of the state. IFC is looking forward to launching a project to support Ukraine in this effort through global knowledge sharing and technical and financial support at the national level," said Jason Pellmar, IFC Regional Manager for Ukraine, Moldova, and Belarus. 

As part of their cooperation over the next three years, the NBU and IFC will work on:

  • drafting NBU strategies for green and sustainable finance;
  • developing sustainable and green finance standards in Ukraine;
  • building the NBU’s capacity to include ESG aspects into regulations on corporate governance in banks and standards for disclosure of information on ESG for banks, and drawing up requirements for environmental and social risk management in banks;
  • sharing knowledge and building the NBU’s capacity to raise awareness for institutions regulated by the NBU (after adopting NBU regulations and standards).

"Our cooperation agreement is the acknowledgement of our joint efforts in development of sustainable financial sector in Ukraine", said Kyrylo Shevchenko.

For reference:

IFC is a member of the World Bank Group. IFC is the largest of the global institutions that aim to build out private sectors in developing economies. IFC operates in more than 100 countries, using its capital, experience, and influence to create markets and opportunities in developing countries. In 2020, IFC invested more than USD 22 billion in private companies and financial institutions around the globe to help overcome poverty and improve welfare. For more information, go to www.ifc.org.

 

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