GREEN INVESTMENT BOOM: PROSPECTS AND CHALLENGES FOR UKRAINE IN THE CONDITIONS OF ENERGY TRANSITION

Abstract

The article provides a comprehensive analysis of the current state and prospects for the development of “green” investment in Ukraine, taking into account the aspects of economic transformation and energy transition, which have become of great importance in the context of war and post-war recovery. The main attention is paid to studying the dynamics of capital investments in the field of environmental protection during 2018-2023, as well as structural changes in this direction due to regional geopolitical changes. The quantitative and structural changes in cash flows, their sensitivity to external events and the restoration of investment activity in 2023 are analyzed. A special place is occupied by the statistical analysis of investments in the development of renewable energy sources (RES), as key components of national energy security and the sector for attracting domestic and foreign capital. The effectiveness of in- vesting in renewable energy sources was also studied using the example of using the net present value (NPV) indicator, which can be used for a specific project, and a SWOT analysis was also carried out to understand all current barriers and prospects for entering the industry. Significant attention was paid to factors that influence the formation of a favorable investment climate, in particular the geopolitical situation, the regulatory environment, integration processes with the EU and the development of state programs and initiatives in the field of energy independence, in particular the National Energy and Climate Strategy until 2030. The level of domestic and European investments planned at the state level in 2025 was separately analyzed. It is concluded that the interest of international and national actors in financing renewable energy is growing rapidly, which is accompanied by structural shifts in priorities and investment patterns.For the first time in history, in 2022, global green investment exceeded investment in fossil fuels, which signaled the beginning of a new economic paradigm. The article may be useful for investors, public policy makers, analysts and scientists interested in developing high-quality tools for economic growth in modern conditions and modernizing the current state of the energy sector.