Current Challenges and Prospects for the Development of a Green Economy in Ukraine
Platform for Social Change
Environment for the Development of Social Entrepreneurship
The war in Ukraine has caused significant environmental and economic damage, disrupting industries and creating new challenges for sustainable development. Despite these difficulties, the green economy remains an important growth area, offering solutions for energy sufficiency, waste management, and environmental restoration. While its impact is limited due to the conflict, developing green initiatives today will be crucial for Ukraine’s post-war recovery.
Green Economy and Its Development in Ukraine
A green economy emphasizes low carbon emissions, resource efficiency, and social inclusivity. It aims to achieve economic growth while minimizing environmental degradation and promoting social equity. Key components include adopting renewable energy sources, implementing circular economy practices, and fostering sustainable development.
Before the war, Ukraine had taken steps toward a greener economy through renewable energy expansion and waste management reforms. However, the invasion has significantly disrupted this progress. According to Ukraine’s Ministry of Energy, the country lost 45% of its solar energy capacity and 90% of its wind power in 2022 due to the occupation of key energy-producing regions. Nevertheless, social enterprises and local initiatives continue implementing sustainable solutions where possible.
Globally, a strong push exists to integrate sustainable practices into economic frameworks. For instance, various European cities are adopting innovative urban planning and housing approaches that prioritize environmental sustainability and community well-being. These initiatives often involve using sustainable materials, energy-efficient designs, and incorporating green spaces, reflecting a broader commitment to sustainability.
The Role of Social Enterprises in Sustainable Development
The green economy presents significant opportunities for social entrepreneurship, both in the present and as part of Ukraine’s long-term recovery. While the war limits large-scale development, social enterprises already engage in local renewable energy projects, recycling programs, and environmental restoration efforts. These initiatives provide ecological benefits and new employment opportunities, particularly for internally displaced persons (IDPs) and communities affected by the conflict.
However, Ukraine’s green economy is not solely about energy and waste management—it also extends to sustainable agriculture and tourism. A strong example is Berry Paradise (Yahidnyi Rai), an agricultural cooperative initiated by the Dunayevets City Council. The cooperative unites 43 families across 14 villages, cultivating over 10 hectares of land, with 4 hectares dedicated to berry crops like raspberries, blackberries, and currants. Beyond providing fresh, locally grown produce, the cooperative ensures stable household incomes and reduces rural migration, enabling families to remain in their communities rather than seeking work elsewhere. By promoting sustainable land use and collective farming, this initiative demonstrates how social enterprises can contribute to Ukraine’s green economy by combining economic resilience with environmental responsibility.
Another notable example is Onyshchuk's Wine Estate, a rural tourism business combining eco-friendly recreation with natural food production. The estate produces pastilles, dried fruits, and energy bars using locally sourced, preservative-free ingredients while supporting small farmers and rural employment. Promoting eco-tourism and traditional production methods helps the estate develop sustainable rural economies and encourages visitors to adopt environmentally responsible practices. This model exemplifies how green economy initiatives can integrate nature, local entrepreneurship, and sustainability, benefiting communities and the environment.
At the Platform for Social Change, we support social enterprises working in the green economy by providing mentorship, investment opportunities, and strategic guidance. We believe sustainable business models can play a key role in rebuilding communities, ensuring that Ukraine’s post-war recovery is economically and environmentally responsible.
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Opportunities for Ukraine
Despite the ongoing war, Ukraine has a unique opportunity to integrate sustainable solutions into its recovery. The green economy aligns with national reconstruction efforts and global environmental priorities, offering long-term economic and ecological benefits.
The war has severely impacted Ukraine’s agricultural sector, but green farming practices can support recovery and long-term sustainability. Expanding organic farming and cooperative agriculture models can help restore soil health, ensure food security, and create economic opportunities in rural areas. Encouraging small-scale farming cooperatives can strengthen local economies while promoting responsible land use.
The Government of Ukraine, in collaboration with the United Nations Industrial Development Organization (UNIDO), has developed the Green Industrial Recovery Programme (2024–2028). This initiative focuses on:
This program lays the foundation for a modernized and resilient industrial sector that aligns with global green transition trends.
Ukraine’s natural landscapes and cultural heritage present significant potential for eco-tourism. Developing sustainable tourism initiatives can attract responsible travelers while generating income for rural communities. Promoting nature-based tourism, environmentally friendly accommodations, and local food production can contribute to both economic recovery and environmental conservation.
Post-war reconstruction offers a major opportunity to attract international investment in sustainable infrastructure. European partners and development organizations are already supporting renewable energy, reforestation, and climate resilience initiatives. Strengthening these collaborations can accelerate Ukraine’s transition to a more sustainable and resilient economy. For example, the World Bank has approved $2.05 billion in funding to support Ukraine’s financial and economic stability, focusing on renewable energy production and credit expansion in agriculture.
Conclusion
While the green economy in Ukraine currently faces challenges due to the ongoing conflict, it holds significant potential for driving sustainable development and economic recovery. With the proper support and investment, social enterprises can play a pivotal role in this transformation, aligning environmental sustainability with social and economic objectives. Ukraine can build a more resilient and sustainable future by integrating green economy principles into post-war reconstruction efforts.