INTEGRATED MODEL FOR ATTRACTING GREEN INVESTMENTS FOR DECARBONIZATION OF UKRAINE’S IRON ORE INDUSTRY

Abstract

The aim of the article is to develop an integrated model for attracting green investments for the decarbonization of Ukraine’s iron ore industry in the context of implementing the European Union’s Carbon Border Adjustment Mechanism and global trends towards achieving climate neutrality. The research methodology is based on a systematic approach utilizing functional modeling of business processes, comparative analysis of international experience from leading global mining companies (Rio Tinto, BHP, Vale, ArcelorMittal), and adaptation of best decarbonization practices to the specificities of Ukrainian mining and processing plants. The theoretical foundation comprises concepts of sustainable industrial development, green finance theory, and the GHG Protocol methodology for greenhouse gas assessment. Scenario planning methods were employed to determine technological modernization trajectories, and financial-economic analysis was used to substantiate investment decisions in the context of transition to climate neutrality. The scientific novelty of the work lies in the first-time development of an integrated green investment attraction model that combines a technological module of cascaded modernization from energy-efficient measures to hydrogen technologies, a financial module of diversified capital attraction through green bonds and ESG funds, and a verification module for emissions monitoring in accordance with international standards. For the first time, a three-phase strategy for implementing decarbonization of the iron ore industry has been proposed with clear delineation into preparatory (2025–2027), modernization (2027–2030), and transformation (2030–2035) phases, with defined investment volumes and target CO₂ emission reduction indicators. Conclusions. Decarbonization of Ukraine’s iron ore industry requires systematic transformation of technological processes and attraction of USD 3,7–5,3 billion in green investments during 2025–2035. The integrated model ensures a sequential transition from energy-efficient measures to implementation of breakthrough hydrogen technologies and carbon capture systems, enabling achievement of the target emission reduction of 50–60% by 2035. Successful implementation of the model will ensure the competitiveness of Ukrainian mining and processing plants in the European green metallurgical products market and compliance with the requirements of the EU’s Carbon Border Adjustment Mechanism.