The Green Deal as a New Export Reality
Social and environmental responsibility have become decisive for exporting to the European Union. Under the EU Green Deal, all producers entering the European market — including Ukrainian agricultural exporters — must demonstrate compliance with sustainability, climate neutrality, and ethical labor standards.
The new framework affects supply chains, access to financing, and production costs, requiring both large and small agricultural companies to rethink their operations.
“Sustainability of supply chains is already our everyday life and a condition for exporting products to the European market,”
— Oksana Prosolenko, Executive Director of I.P.Cert and member of the Association of Sustainable Development Experts.
Voluntary Certification and ESG Compliance
Many EU buyers now require voluntary certification under international sustainability schemes — especially for biofuel, oilseed, and grain exports.
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Exporters must calculate greenhouse gas (GHG) emissions and confirm them with audited reports.
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Banks and investors require ESG (Environmental, Social, Governance) assessments before financing.
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The CSRD directive introduces mandatory sustainability reporting, expanding responsibility across the entire supply chain.
These requirements make ESG not just a “trend,” but a formal prerequisite for cooperation with European buyers.
EU Directives That Ukrainian Businesses Must Follow
🔹 CSRD — Corporate Sustainability Reporting Directive
Requires large companies to publish non-financial reports on environmental, social, and governance indicators.
European importers will demand ESG data from Ukrainian suppliers for their own compliance.
🔹 CSDDD — Corporate Sustainability Due Diligence Directive
Introduces responsibility for human rights and environmental impact across supply chains.
Will lead to supplier audits, codes of conduct, and compliance monitoring.
🔹 EUDR — European Union Deforestation Regulation
Prohibits imports of products linked to deforestation.
Currently applies to soy, cattle, and derived goods, but may soon include corn and other crops.
🔹 CBAM — Carbon Border Adjustment Mechanism
The EU’s carbon tax, currently covering fertilizers and electricity, could extend to agricultural products by 2030, increasing production costs for exporters.
🔹 Green Claims Directive
Prevents “greenwashing” by requiring proof of environmental statements on product labels and marketing materials.
🔹 RED III — Renewable Energy Directive III
Sets strict sustainability criteria for biofuels, biomass, and biogas, including traceability, biodiversity protection, and GHG reduction requirements.
Transitioning to Organics and Green Investment
The EU aims to reduce pesticide use by 50% and increase organic farming to 25% by 2030.
Ukrainian farmers need to align with these goals to maintain market access.
“In the coming years, enterprises will be obliged to show investments in green technologies, decarbonization, and energy efficiency. The timeframe is two to five years,”
— Oksana Prosolenko, I.P.Cert.
This shift encourages investment in organic production, renewable energy, and carbon footprint monitoring.
Financial and Practical Incentives
According to UCAB analyst Maksym Hopka, large agricultural producers are already preparing for non-financial reporting, which will become mandatory from 2026–2027.
Small and medium-sized farms should:
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Begin documenting social and environmental practices;
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Consult auditors and financial institutions for ESG guidance;
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Prepare for buyer audits and traceability requirements.
“Even traders will require ESG data starting next year. Farmers should start collecting this information now,”
— Maksym Hopka, UCAB.
Bank Tools and ESG Checklists
Credit Agricole Bank has introduced a sustainability assessment questionnaire for agribusiness clients.
It evaluates:
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Climate and environmental risks;
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Soil and water management;
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Crop diversification and waste management;
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Carbon footprint accounting;
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Employee welfare and stakeholder engagement.
“We provide farmers with a ready tool — a checklist that shows which EU requirements must be met and which practices to implement,”
— Iryna Vysotska, Head of ESG at Credit Agricole Bank.
The bank also offers training and consultations to help farms transition toward sustainable practices.
The Cost of Transition to Agroecology
The move from traditional agronomy to agroecology is no longer optional — it’s the price of market access.
According to I.P.Cert experts, the transition to regenerative agriculture costs $60–160 per hectare, depending on the farm’s scale and technology level.
Investments typically include new machinery, soil regeneration, and carbon-reduction practices.
“It’s not just about competitiveness anymore — it’s a requirement for market access. The sooner we invest in sustainability, the better,”
— Oksana Prosolenko.
Key Takeaway
To maintain and expand exports to the EU, Ukrainian producers must embrace sustainability as a core business principle.
Over the next 2–5 years, alignment with ESG, CSRD, and EUDR will determine who remains competitive — and who loses access to Europe’s market.
