On the issue of legal support for the use of green bonds for the development of organic production in Ukraine

Abstract

In this article, it has been conducted a scientific and theoretical analysis of the legislation, which introduces the green bonds as a tool for financing organic production, and also it has been identified the ways to improve it. It has been determined that a new type of valuable securities – green bonds can become one of the tools to support the development of organic agricultural production. It is proved that singling out of environmental projects as a direction, which involve the use of funds raised from the issue of green bonds, organic farming, is debatable due to the lack of a regulatory definition of this concept, which can complicate the practical implementation of legislative prescriptions and compliance with the standards for issuing green bonds (Green Bond Principles). Based on the analysis of legal doctrine in terms of defining the concepts “organic farming”, “organic crop production”, “organic production”, as well as the features of organic production, it has been concluded that organic crop production, animal husbandry, aquaculture fully meet the categories of environmental projects, stipulated by the GBR principles (such as: environmentally sustainable agriculture, animal husbandry and aquaculture; agricultural technologies that do not harm the climate, etc.). It is proposed to lay out the first paragraph of the Part 2 of the Article 18 of the Law of Ukraine “On Capital Markets and Organized Commodity Markets” in the following wording: “an environmental project is a project in the field of alternative energy, energy efficiency, minimization of the formation, disposal and processing of wastes, the introduction of environmentally friendly transport, organic production, conservation of flora and fauna”, water and land resources, adaptation to climate change, as well as another project aimed at protecting the natural environment, introducing environmental standards, reducing emissions into the environment.”