Empirical analysis of green enterprises activity and prospects for renewable energy development in Ukraine

Abstract

Виконано емпіричний аналіз діяльності “зелених” підприємств, а також розглянуто перспективи впровадження “зелених” інновацій. У статті проаналізовано п’ять провідних українських “зелених” підприємств за п’ять років, зокрема: ПрАТ “Миронівський хлібопродукт” та АТ НАК “Нафтогаз”, які входять до топ-10 компаній, що впроваджують “зелені” технології в Україні, а також ПрАТ “Інтерпайп Сталь”, ПрАТ “Енергомашспецсталь” та ПрАТ “Дніпроспецсталь”, що є лідерами в реалізації технології “зеленої” металургії в країні. Отримані результати під час аналізу показників прибутковості зазначених підприємств дали змогу встановити рекомендації для потенційного напряму розвитку змін в сфері “зеленої” економіки на українському ринку.

Purpose. This paper comprehensively analyzes the performance of five prominent Ukrainian green enterprises spanning the period from 2016 to 2020. Specifically, it focuses on PJSC Myronivskyi Hliboprodukt and NJSC Naftogaz, recognized as top contributors to green technologies in Ukraine, and delves into the green metallurgy advancements of PJSC Interpipe Steel, PJSC Energomash-spetsstal, and PJSC Dniprospetsstal. The study not only evaluates their achievements but also formulates strategic recommendations, outlining a potential developmental roadmap for fostering positive transformations within the Ukrainian green economy. Design/Methodology/Approach. The problem of establishing an effective financial mechanism in Ukraine, aimed at the development of the green economy through green investment, and, therefore, the search for sources of funding for green business, is currently open for discussion. The study of the financial statements of five green enterprises in Ukraine as well as the currently existing approaches to solving the above-mentioned problems made it possible to determine the sources of financing the green economy, which embrace the state budget (through targeted state and regional investments), foreign (international) investments, commercial funds (funds of off-budget investment, environmental and other funds), own funds (funds of enterprises and organizations creating market infrastructure - environmental investment banks, natural resource exchanges, consulting agencies). Findings. Both social and economic benefits of the development of renewable energy sources are undeniable. However, no sector of the economy will be able to develop sustainably without appropriate state incentives and an attractive business climate in the country. Under current conditions, the Government of Ukraine faces the task of preserving those national and international investors in RES who have already invested in the economy of Ukraine, providing conditions for their further business activity in the post-war period. The financial mechanism for the formation of a green economy can function effectively if one understands the factors of a green financial system, which rely on environmentally determined transformations of the modern investment environment. These include:a) transformation of investors’ assessments of environmental investment results; b) growing needs for intermediary services of the financial sector as a result of the development of market mechanisms forensuring sustainable development (carbon markets, green technologies among others); c) representa-tiveness of market assessments of ecologically safe production; investment attractiveness of various financial instruments, peculiarities of their pricing. Practical implications. The results obtained during the analysis of the profitability indicators of the mentioned enterprises made it possible to set recommendations for the potential developmental vector for changes in the green economy in the Ukrainian market. The prospects for the development of renewable energy sources in Ukraine have been analyzed to prove that starting from 2019, investments in new renewable energy projects in Ukraine have been consistently higher than those in fossil fuel projects. Originality/Value. The paper not only contributes valuable data on sustainable practices of Ukrainian green enterprises but also formulates recommendations, outlining a potential developmental trajectory for advancing the green economy within the Ukrainian market. This dual focus on analysis and strategic recommendations enhances the originality and practical value of the paper.