On the issue of legal environment of the application of green bonds for the development of organic production in Ukraine

Abstract

The article presents a scientific and theoretical analysis of the legislation that introduces green bonds as a tool for financing organic production, as well as identifies ways for its improvement. It is determined that a new type of securities – green bonds, can become one of the tools to support the development of organic agricultural production. It is proved that the allocation of environmental projects as a direction, which involve the use of funds raised from the issuance of green bonds, organic farming, is debatable, given the lack of normative definition of this concept, which may complicate the implementation of legislation and compliance with green bond issuance standards (Green Bond Principles). Based on the analysis of legal doctrine in terms of defining the concepts of «organic farming», «organic crop», «organic production», as well as features of organic production, it is concluded that organic crop, livestock, aquaculture fully meet the categories of environmental projects GBR principles (such as: ecologically sustainable agriculture, animal husbandry and aquaculture; agricultural technologies that do not harm the climate, etc.) It is proposed to set out the first paragraph of Part 2 of Art. 18 of the Law of Ukraine «On Capital Markets and Organized Commodity Markets» as follows: «environmental project is a project in the field of alternative energy, energy efficiency, minimization of waste generation, utilization and processing, introduction of environmentally friendly transport, organic production, conservation of flora and fauna, water and land resources, adaptation to climate change, and another project, aimed at protecting the environment, implementing environmental standards, reducing emissions into the environment». Keywords: government support, green bonds, legal support, environmental project, organic production, organic farming, organic products