Green Transition Report for Ukraine Outlines Pathways to Green Recovery and EU Integration

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01.07.2025

In the context of Ukraine’s European integration, the Stockholm Environment Institute (SEI) has presented the National Green Transition Assessment Report* – the first such document for Ukraine. The report was prepared within the framework of the “Green Agenda” initiative for Armenia, Georgia, Moldova, and Ukraine.

A Vision of a Green and Resilient Ukraine

The report assesses Ukraine’s readiness for a green transition across twelve key sectors, including energy, industry, transport, agriculture, and digitalisation. It provides a detailed analysis of how Ukraine’s green transformation, against the backdrop of the ongoing war and extensive infrastructure destruction, creates a unique opportunity to “build back better” and position the environmental agenda as the foundation of the country’s future economic competitiveness.

“The latest rapid damage and needs assessment indicates that at least €506 billion will be required for Ukraine’s recovery. Our report illustrates the current state of various sectors in terms of green transition and how reforms and investments should be prioritised to overcome environmental degradation, foster economic stability, and enhance competitiveness in line with EU standards,” said Ivo Krustok, lead coordinator of the National Comprehensive Report for Ukraine.

Key Findings and Opportunities

Despite the extensive destruction caused by the war, Ukraine remains determined in its European aspirations, stepping up efforts to decarbonise its economy, reduce dependence on fossil fuels, develop renewable energy sources, and implement EU environmental standards. The report emphasises that post-war reconstruction is not only about physical rebuilding but also a chance for systemic economic and social transformation through the adoption of clean technologies, greater energy efficiency, and the development of resilient infrastructure.

Integrating the green agenda into national and local planning and governance will be critical to achieving success. Significant untapped potential exists in cross-sectoral cooperation, investments in human capital and “green skills,” the creation of an effective green financing system, and strategic land-use planning. The report also highlights Ukraine’s strengths in digitalisation and innovative defence technologies as growth drivers for green industry and high-tech manufacturing.

“The transition to a green economy is crucial for Ukraine’s national resilience, advancement of EU membership, and integration into international value chains,” said Hanna Hladkykh, Head of the Green Agenda for Ukraine and Policy Analyst at SEI. “Our report demonstrates Ukraine’s determination to turn crisis into opportunity – not only for itself but also as an example for other countries recovering from conflict.”

Next Steps within the Green Agenda

Following the publication of the National Report, SEI’s Green Agenda initiative will continue to support its Ukrainian partners in developing sectoral plans to reduce greenhouse gas emissions and ensure sustainable competitiveness, as well as in strengthening research and analytical capacity to support decision-making processes.

In addition, the report identifies critical challenges that must be addressed in the coming years to ensure sustainable growth and further integration into the EU.

A summary of the report is available at the link.
The full version of the report in English is available at the link.

The document was developed with the support of the Swedish International Development Cooperation Agency (Sida) and released on the eve of the Ukraine Recovery Conference, to be held in Rome on July 10–11.