The Paris Agreement was adopted on December 12, 2015, at the 21st Conference of the Parties (COP 21) to the United Nations Framework Convention on Climate Change (UNFCCC), providing a comprehensive framework for global climate action . The Paris Agreement seeks to limit global temperature rise to well below 2 degrees Celsius above pre- industrial levels, with an aspirational target of limiting the increase to 1 .5 degrees Celsius before 2100 .
Achieving these ambitious objectives requires comprehensive economic transformation and substantial financial mobilization . The agreement recognizes the critical role of finances in enabling developing countries to mitigate and adapt to climate change . Article 9 of the Paris Agreement established a clear framework for financial assistance, defining the significant role of developed countries in supporting developing economies in their climate efforts. Joint efforts include both reducing greenhouse gas emissions and adapting to climate change . The agreement also encourages other nations to contribute to this global financial effort on a voluntary basis. The expectation is for developed countries to lead in mobilizing climate finance through diverse sources, instruments, and channels, with a particular emphasis on public funding .
Regarding the numerical financial commitment of COP 21, developed countries pledged to maintain their collective mobilization goal amounting to at least $100 billion annually through 20251, with transparency and meaningful mitigation actions . Before 2025, the Conference of the Parties had to establish a new collective quantified financial goal (NCQG) for climate finance, which shall not be lower than previously agreed commitments. This goal will be carefully calibrated to address the specific needs and priorities of developing countries, ensuring a more equitable approach to global climate finance.
In November 2024, COP 29 was held in Baku, Azerbaijan, bringing together representatives from almost 200 countries . The main focus of the conference was the mobilization of climate finance, with the main topic being the NCQG definition. The agreement was reached to provide $300 billion annually by 2035 and to secure efforts of all actors to work together to scale up finance to developing countries to the amount of $1.3 trillion per year by 20352 . Although this target means a de facto tripling of previous annual commitments, it was coldly received and even called a betrayal by some of the representatives of developing countries .
Given the dynamics of climate finance commitments and the expected increase in sustainable finance flows, this paper aims to advocate green investment opportunities in Ukraine . The report reviews and discloses the potential of climate finance in Ukraine by providing an overview of decarbonization-contributing activities in Ukraine and looking at specific investment opportunities.
The Green Transition Office is an independent advisory body under the Ministry of Economy of Ukraine that helps to implement reforms in the field of green transition, energy and climate policy of Ukraine. The Green Transition Office operates with the financial support of the UK International Development and is implemented by DiXi Group.
The document was prepared with the support of the International Renaissance Foundation within the framework of the project «Supporting the Decarbonization of Ukraine’s Economy through the Development of New Debt Financing Models. Stage 5».
The contents of this document are the sole responsibility of DiXi GROUP and can under no circumstances be taken to reflect the views of the International Renaissance Foundation.