CLIMATE FINANCE IN THE CONTEXT OF THE PARIS AGREEMENT: OPPORTUNITIES AND CAUTIONS FOR UKRAINE

The adoption of the Paris Agreement (UNFCCC, 2015) marked the beginning of a new phase in the search for responses to climate change. In particular, the agreement made important adjustments to the architecture and procedures of international climate finance, as one of the key instruments for supporting necessary measures. Building on systematic review of recent scientific literature, analytical reports and publicly available official information on climate finance, the article discusses key changes in the sphere, taking place after the adoption of agreement and their relevance to Ukraine, where high expectations regarding climate finance come from the government, business and public. Given the polarized climate policy in Ukraine, the emphasis is placed on the important nuances of the emerging climate finance, those that often go unnoticed by analysts and researchers, namely – a clear need for alternatives to emissions offsetting, the importance of developing a system for recognizing, monitoring and verification of the effectiveness of adaptation measures, and need for solutions outside of the decarbonization policy and the respective funding priorities. Based on international experience, I offer to consider climate finance and other economic instruments as solutions, which, along with their potential effectiveness, are not a panacea. Climate finance should create synergies in the system of climate change measures, but also should not become a barrier or "veil" to systemic change in society, one that requires changes much more profound, than the allocation and proper use of sufficient funds. Financing climate action should consider not only "hard" solutions, but also investments into and nurturing of social and cultural innovation and experimentation, which are at the roots of necessary change. Climate finance shall only be effective when public deliberation and participation becomes a foundation for all other action.