SCENARIOS OF ECONOMIC RECOVERY OF UKRAINE: BUILD BACK BETTER VS BUSINESS-AS-USUAL

Abstract

. Ukraine had ambitious plans for developing renewable generation, decarbonising the economy and combating climate change even before the start of a full-scale war. To implement the technological transition, economic development and European accession, the post-war recovery of Ukraine should be based on the concept of "building back better" and the principles of green recovery. Although the full-scale reconstruction of Ukraine can only start in the post-war period, fast recovery as a response to the emergency has been going on since nearly the first days of the full-scale invasion.

The government is already planning the post-war recovery of Ukraine and taking measures to restore infrastructure such as energy objects or buildings quickly. Therefore, it is essential to understand the potential impact of recovery processes on the environment and climate. It goes without saying that defence is a number one priority during war. The work concludes that, sustainability, impacts on climate and environment are important considerations for long-term post-war reconstruction. The author argues that it is due to the following factors: European integration aspirations of Ukraine.

It is noted that Ukraine must implement European environmental and climate legislation to join the EU. It is advisable to take it into account during recovery and to ensure reconstruction processes are in line with it; the green component should be duly incorporated in state programs, reforms and projects. This will facilitate access to international financing, which is also relevant for business; incentives should be in place to develop green technologies and innovations to reduce the carbon intensity of existing production and attract investments in new industries. Those could be the production of equipment for RES or components of the electric vehicles. The author stated, that the green stimulus will help make Ukraine's post-war economy more modern, competitive, and integrated into EU value chains.