The Pivotal Role of Sustainability for Ukraine’s Reconstruction: insights from the event

Since Russia’s full-scale invasion of Ukraine in February 2022, numerous economic recovery and reconstruction plans have emerged. Aligned recovery planning is crucial to meet Ukraine’s immediate and long-term objectives and financing needs in a transparent, and efficient manner. But how can we navigate the diverse landscape of strategies and plans?  What role can sustainability play, and how can it be operationalised effectively?

These critical questions were addressed at our latest event which UCO jointly organized with the International Institute for Sustainable Development (IISD.)

It brought together experts, policymakers, and stakeholders to explore sustainable recovery strategies for Ukraine, the essential role of the building and housing sectors in reconstruction, and the financial aspects of the process. The findings and recommendations from recent analyses of Ukraine’s green recovery plans were presented by Dr Oleksandr Sushchenko, highlighting sustainability frameworks and approaches in the building sector.

“This event marks an important milestone in advance of sustainability in Ukraine. Transition from “brown” to a dark green economy requires transition of technologies. Establishing governance framework that encourages sustainable investments and balanced financial consideration of profit-driven companies while safeguarding against the risk of greenwashing is vital.”  Julia Jesson, Head of Capacities for Climate Action / Ukrainian Climate Office, GIZ, highlighted in her opening speech.

Overall, building back better is indispensable and requires a common understanding of sustainability, but it needs to be practical, so that people can relate to. A panel discussion organized by IISD, focused on the building and housing sector—a cornerstone for Ukraine’s recovery. The discussion highlighted numerous challenges that must be addressed to implement green standards effectively, including securing financial resources, developing human capital, enhancing technical expertise, and overcoming logistical and operational barriers. Phillip Gass, Director, Energy Program, IISD shared: “Since 2022 IISD is supporting Ukrainian organizations and the Ministry of Environmental Protection and Natural Resources of Ukraine (MEPR) to inform the stakeholders that despite the challenges the green sustainable solutions are relevant even during the war. And we are here to demonstrate that building back better is possible even in the most challenging times and it’s already happening.” Building on this, Yurii Shafrenko, Deputy Director for Economic Policy at the Office of the President of Ukraine, highlighted Ukraine’s dedication to achieving the Sustainable Development Goals (SDGs).

The final session of the event featured financial experts, government representatives, and EU stakeholders, exploring how Sustainable Finance can contribute to Ukraine’s reconstruction.

Key Takeaways for Action

Discussions underscored the need for:

• Governance Frameworks: Establishing systems that ensure sustainability is embedded in recovery projects and plans.
• Training and Capacity Development: Preparing architects, designers, and local stakeholders to implement modern green standards.
• Pilot Projects: Demonstrating the benefits of sustainable reconstruction, including comfort, health, and economic savings, to build momentum for wider adoption.

While reviewing recovery plans, Ukraine must prioritize concrete actions and specific measures to achieve tangible results. The taxonomy should address the needs of all stakeholders especially on the local and regional levels. Local communities which suffered the most severe damage must receive adequate funding for recovery efforts. At the same time these local recovery plans must incorporate sustainability principles to guarantee that recovery efforts are not only effective in short-term but also align with long-term ecologically responsibility and sustainable development goals.

Olha Yukhymchuk, Deputy Minister on European Integration, MEPR, highlighted in her speech that Ukraine remains dedicated to aligning with EU goals including climate neutrality 2050. She emphasized that the country’s Nationally Determined Contribution (NDC) serves not only as a target but also as a comprehensive investment plan for recovery.

International partners shall coordinate to ensure the synchronized use of sustainability criteria for recovery projects.

Torsten Woellert, Minister Counsellor on Energy, Environment, Climate, EU Delegation to Ukraine reinforced the importance of readiness “EU rules will apply to Ukraine, and we shall be ready. Housing is always challenging industry, and we need to decrease the risks of corruption. Legislation shall solve practical questions. In EU we have energy efficiency standards, developing legislation and experts and Ukraine shall be ready so that we don’t have the situation when politically everything is ready and, on the ground, this will be a problem. If you don’t want to do that – you can stay in low level of Energy Efficiency, but you’ll have to pay the price.”

During the discussion participants marked that Ukraine must begin training architects and designers now, preparing equipment, and addressing a broad range of issues, such as procurement, capacity development, and public awareness raising to pave the way for build back smarter.

Despite the ongoing war, Ukraine can lead by example, showcasing what modern green buildings can achieve. Exemplary projects initiated today can be scaled up in the coming decades, serving as benchmarks for sustainable development. It is crucial to communicate the benefits of modern standards—improved comfort, enhanced health, and cost savings—to ensure public and stakeholder buy-in. Pilot projects should not only demonstrate these advantages but also function as training and learning centers. Ukraine’s unique resilience and technological expertise provide a strong foundation for sharing knowledge and advancing innovative green recovery solutions.

In his closing speech Robert Kuenne, Energy and Climate Sector Coordinator, GIZ, emphasized that Ukrainian Climate Office will further foster and facilitate discussion to mobilize green and sustainable financing towards green recovery.

The event is jointly organized by the International Institute for Sustainable Development (IISD) and the Ukrainian Climate Office under the Capacities for Climate Action (C4CA) project implemented by GIZ on behalf of the German Federal Ministry for Economic Affairs and Climate Action (BMWK) within the framework of the International Climate Initiative (IKI) and co-financed by the European Union.