For many Ukrainians, the housing problem has long been acute. Ukrainian scientists and international experts have joined the search for ways to solve it. They propose to unite the efforts of authorities, banks, developers, international investors, and researchers. On March 5, 2026, on this occasion, a round table "Green Mortgage: How to Launch the Next Generation Housing Market" was held in Kyiv. The event was jointly organized by the Institute of Economics and Forecasting of the NAS of Ukraine and SMARTER FINANCE FOR EU – European Centre of Excellence (SMARTER4EU).
In general, scientists at the Institute of Economics and Forecasting of the NAS of Ukraine have been dealing with the development of the mortgage lending market for several decades. A number of financial and economic crises, war, as well as extremely insufficient attention from the state have significantly limited the formation of this market in Ukraine, although in developed countries it traditionally acts as one of the drivers of socio-economic progress. At the same time, conditions have now formed in Ukraine for a second attempt to launch the mortgage market. The availability of fairly large volumes of investment resources in the banking sector of Ukraine, in international financial institutions, as well as the development of promising tools that allow reducing credit risk, lowering the cost of credit, and ensuring its targeted allocation according to environmental standards and formalized commitments of the EU Green Deal, open up prospects for solving a significant part of the problems that have restrained mortgage lending in Ukraine since 2008. Increasing interest in this direction is caused by the so-called green mortgage – a type of lending for the purchase of new real estate that meets ecological and energy efficiency standards and has great prospects.
This is the focus of the SMARTER4EU initiative, launched in 2019 under the Horizon 2020 program – engaging financial institutions and residential real estate developers to create and launch a financial product secured by a green mortgage. Today, this initiative unites 17 organizations from 12 European countries. Cooperation with the Institute of Economics and Forecasting of the NAS of Ukraine allows it to obtain macroeconomic analysis and deepen understanding of the national context, which is critically important for the successful adaptation of European green financing approaches in the construction sector to the specifics of the Ukrainian regulatory environment.
A scientific toolkit for assessing the effectiveness of investment projects has already been developed, and scientific approaches to the application of blended finance mechanisms to address decarbonization issues have been formed. Despite this, key challenges remain the weakness of the regulatory framework and the professional capacity of market participants. This was the focus of the reports by the round table participants at the Institute of Economics and Forecasting of the NAS of Ukraine.
At the beginning of the event, the director of the Institute of Economics and Forecasting of the NAS of Ukraine, academician of the NAS of Ukraine Valeriy Heyets, emphasized that launching a green mortgage is a strategic step to ensure national energy security and long-term economic stability of the state, so it is necessary to ensure the scientifically grounded implementation of the green mortgage.
The head of the unit of the European Commission’s Executive Agency for Climate, Infrastructure and Environment (CINEA) Hans Rhein confirmed international support for the initiative and emphasized the practical aspect of integrating European energy efficiency standards into Ukrainian construction norms. Executive director of the Smarter Finance4EU initiative Yelena Rastrey and project advisor Viktoria Petrovych outlined the role of green mortgages in strengthening energy security and ensuring access to sustainable housing for the population.
The round table consisted of four thematic sessions, which revealed the experience of implementing green mortgages in EU countries, outlined problematic issues, and introduced the developed tools in the field of green mortgages and sustainable construction in the banking and construction sectors.
During the first session, SMARTER4EU initiative experts Steven Bornkamp and Hanane El Hayek shared European experience and market development methodology based on the EU Taxonomy (EU Taxonomy – EU Regulation 2020/852 – a classification system of environmentally sustainable economic activities created to stimulate investments in green projects). Senior expert on green financing at the Green Transition Office under the Ministry of Economy, Environment and Agriculture of Ukraine Dmytro Sych spoke about the specifics of adapting these requirements to Ukrainian realities and about the steps already taken to form technical criteria for recognizing green projects.
Scientists from the Institute of Economics and Forecasting of the NAS of Ukraine introduced participants to their latest developments in this area. Leading research fellow of the Department of Energy Economics and Climate of the Institute of Economics and Forecasting of the NAS of Ukraine, Candidate of Technical Sciences Oleksandr Dyachuk focused in detail on the challenges and ways of decarbonizing the construction sector. In particular, sectors related to construction and energy supply to buildings must receive the necessary political foundation and improved legislation for decarbonization and be capable of attracting investments, with renewable energy and energy saving as priorities.
Within the discussion on construction development, head of the Infrastructure Development Department of the Institute of Economics and Forecasting of the NAS of Ukraine, Doctor of Economic Sciences Olena Nykyforuk, provided a macroeconomic assessment of the housing construction market and revealed the main characteristics of the industry’s development.
Approaches to quantitative risk assessment of green mortgages were presented by the strategic climate finance expert at “Repower Holdings” Ted Kronmiller.
Special attention was paid to the readiness of financial institutions to implement new products. The event attracted the attention of many financial intermediaries, the National Bank of Ukraine, and the National Association of Banks of Ukraine. Reports were presented by the president of the Association of Ukrainian Banks Andriy Dubas, president of the National Mortgage Association Serhiy Volkov, head of the sustainable banking implementation department of the sustainable banking department of JSC “Ukrgasbank” Serhiy Kikot, chairman of the board of JSC “Creditwest Bank” Ihor Tykhonov, head of the partner lending relations center of the partner relations department of JSC “Oschadbank” Oleksandr Muryshuk, president of the public union “Ukrainian Capital Markets Association” Serhiy Moskvin, director of the business development department of Private Joint Stock Company “Ukrfinzhytlo” Andriy Tarasenko, who spoke about the level of readiness to implement green mortgage products and relevant developments.
Issues of green building certification and energy independence standards were highlighted by experts in ecological construction certification. In particular, building modeling and LEED green building certification specialist [LEED – Leadership in Energy and Environmental Design] from “IC consulenten Ukraine” Iryna Sukhodub revealed the practical aspect and challenges of spreading green certification of residential buildings in Ukraine. The general director of the public union “Ukrainian Green Building Council” Maksym Kryvosheiev outlined opportunities to promote sustainable development in Ukraine. Representatives of construction companies – development director of “Kreator Bud” Dmytro Struk and sales department head of “Smart Development” Viktor Bomchyk – shared their experience in building energy-independent residential complexes in Ukraine.
Summarizing the discussion results, head of the Department of Monetary and Credit Relations of the Institute of Economics and Forecasting of the NAS of Ukraine, Doctor of Economic Sciences Yevhen Bublik, generalized the key institutional factors that require attention for the successful launch of green mortgages. Among them: synergy of economic interests of participants, overcoming traditional behavioral barriers, formation of a comprehensive toolkit, implementation of the Green Taxonomy and primary data infrastructure, digitalization and platformization of processes, information and analytical support, and training.
In his closing remarks, deputy director for scientific work of the Institute of Economics and Forecasting of the NAS of Ukraine, corresponding member of the NAS of Ukraine Serhiy Korablin, summarized the key prospects for implementing the green mortgage mechanism in Ukraine as a tool to reduce the energy intensity of the economy and increase national welfare.
The round table was the first in a series of expert sessions dedicated to forming a modern, sustainable housing market in Ukraine. Further events will focus on coordinating approaches to forming a green mortgage model for Ukraine, developing regulatory proposals for authorities, and practical recommendations for implementing pilot projects.
According to information from the Institute of Economics and Forecasting of the NAS of Ukraine
Photo: Academ.media
