Financial and environmental aspects of carbon farming: Prospects for farmers in Ukraine

Abstract

In the context of global climate change and soil degradation, carbon farming is viewed as a promising tool for ensuring the sustainable development of the agricultural sector. This study focuses on assessing the financial and environmental dimensions of implementing such practices in Ukraine-a subject still underexplored in the national academic discourse, particularly in terms of economic feasibility for farmers. The objective is to identify potential benefits, challenges, and the level of readiness among agricultural producers to adopt this approach. The analysis also considers financial incentives, including mechanisms for generating income through the sale of carbon credits on international markets. To evaluate farmers’ acceptance of these technologies, the study employs comparative analysis, a sociological survey conducted among farmers in the Mykolaiv region, and the CARVER Plus SHOCK method, which enables quantitative assessment of economic and environmental risks associated with implementation. The findings reveal major barriers to the advancement of carbon farming in Ukraine, including high initial investment costs, an underdeveloped regulatory framework, and limited access to carbon credit markets. The results suggest that, with sufficient government support, appropriate financial incentives, and developed infrastructure, this practice can become an effective instrument for enhancing the economic resilience of farming enterprises while simultaneously promoting environmental sustainability. Keywords: financial support, carbon credits, climate change, greenhouse gases, environmentally friendly products.