LOCAL GOVERNMENTS AS STAKEHOLDERS IN THE "GREEN" BUSINESS TRANSITION: THE EXPERIENCE OF THE WESTERN MACROREGION OF UKRAINE

Abstract

The role of local governments as key stakeholders in the "green" business transition was studied using the evidence from the Western macroregion of Ukraine. Based on a survey of representatives of 107 territorial communities from seven regions, conducted in July-August 2025, a multidimensional empirical base covering different types of communities was formed. This allowed to assess the institutional capacity and cooperation practices in the triad "government — business — community" in the implementation of environmentally friendly solutions.

A low level of integration of “green” priorities into local entrepreneurship support policies was revealed: 31.8% of communities have approved business promotion programs, and only about a third of those include an environmental component. Large urban communities are more active, which reflects resource and institutional asymmetries between them and rural and small town areas. Almost a third of communities declare the absence or minimal level of coordination with business and the public, another 14% found it “difficult to answer”, which indicates the formalized nature of interaction.

In the subjective distribution of responsibility for the “green” transition, local governments dominate, while the role of business and population is mostly assessed at 3-4 points; the non-governmental sector is perceived as auxiliary; 27.1% of respondents confirmed the presence of medium-sized or large businesses that actually integrate “green” approaches into production. The main barriers identified are the businesses’ lack of financial resources, low investor interest, dilapidated infrastructure, and instability of regulatory legislation.

The paper proposes a shift to a multi-level partnership model through: embedding “green” requirements into recovery plans and business support programs; creating “green” project registers; developing local energy and waste management plans with the involvement of business and community; supporting partnership in the “government — business — education” triad. The implementation of these steps can convert declarations into practices, reduce territorial gaps, and strengthen the resilience of the community economy in the post-war period.