“GREEN” FINANCIAL ARCHITECTURE AND ECONOMIC DEVELOPMENT: THE ROLE OF GREEN BONDS IN THE TRANSFORMATION OF NATIONAL ECONOMIES

Abstract

In the context of global climate change, financial market restructuring, and post-crisis economic recovery, green bonds are emerging as key financial instruments capable of simultaneously mobilizing investment, supporting energy transition, and enhancing environmental sustainability. For Ukraine, the issue is particularly relevant due to the need for post-war reconstruction, modernization of critical infrastructure, and attraction of international capital. This article aims to analyze global trends in the development of the green bond market, identify its main geographical and sectoral features, and formulate strategic guidelines for fostering a national green bond market tailored to Ukraine’s sustainable development goals. The research methodology is based on systems and comparative analysis, logical generalization, statistical methods, and data visualization. The study uses data from international organizations (such as ICMA (International Capital Market Association), CBI (Climate Bonds Initiative), and the World Bank), a bibliometric review of academic publications, and content analysis of Ukrainian strategic documents. The results reveal that green bond issuance is spatially concentrated, with Europe holding the leading position, and countries such as China, the U.S., Germany, and France dominating the market. It is shown that the expansion of green finance in emerging economies is linked to the gradual implementation of international standards, particularly the Green Bond Principles and Sustainability-Linked Bond Principles, as well as the creation of national taxonomies. The study assesses the potential of green bonds to support decarbonization and modernization of Ukraine’s energy, transport, and utility sectors. Strategic directions are proposed, including harmonization of national regulations with EU norms, development of verification and reporting frameworks, improved project selection procedures, and expansion of the issuer base to include municipalities and private companies. The findings can be used in the development of a national green finance roadmap and help align Ukraine’s recovery with long-term climate objectives.